Iris Capital, NRL hotel deals drive asset sales to nearly $2 billion
Private developer Iris Capital and the governing body of the National Rugby League have invested in two major hotel and pub assets that will boost total national sales in the sector to nearly $2 billion in what has been a frenzy purchases.
There were 54 pub and hotel sales across NSW in the six months to June 30, worth $1.1 billion and adding interstate deals, that will make push sales above the record levels seen over the past two years.
HTL Property, which has completed around 70% of NSW deals since January worth around $700m, said investors and owner-operators were competing for assets offering higher returns with development potential and an increase in land values.
HTL’s managing director for the Asia-Pacific region, Andrew Jolliffe, said there was resilience in the “indexed hotel property market”.
In Brisbane, the Australian Rugby League Commission, which manages the NRL, weighed in on the hotel property sector with the purchase of the Gambaro Hotel on Caxton Street for $30 million.
It is the first of what NRL chairman Peter V’landys and chief executive Andrew Abdo recently said were investment deals aimed at securing the code’s future.
“ARLC has invested in Gambaro Hotel and Restaurant because it is focused on strengthening its balance sheet with stable and secure investments that provide stable income and long-term capital growth,” he said. stated in a press release.
As part of the deal, the popular hotel, which is just 300 yards from Suncorp Stadium on Caxton Street, has 68 rooms which the ARLC plans to turn into suites named after former players of the Queensland rugby league, such as Wally Lewis and Allan Langer.
Its award-winning seafood restaurant and popular bar will continue to be run by the Gambaro family under an agreement with the Rugby Commission.