Pub club's heady rise
The acquisitions come as the pub industry returns to profitability after a tough few years.
Major listed companies, including Coles and Woolworths and landlord ALE Property, have all increased their exposure to the sector through direct purchases or joint ventures with large private operators.
The investments in the first few pubs were made by the Riversdale Group, co-founded by Paddy Coughlan and Andrew Kelly.
It is now backed by key shareholders, investment banker Mark Carnegie, adman John Singleton, former Qantas boss Geoff Dixon and property developer Allan Johnston.
The latest deal was for the Stock Exchange Hotel in Brisbane's central business district, worth about $34 million. It follows the deal for the Elephant Arms in Brisbane for $27 million earlier this year.
Both deals were brokered by Jones Lang LaSalle and bring the portfolio to 11 in Sydney and Brisbane.
Frequently Asked Questions about this Article…
The Australian Pub Fund is a pub-focused investment vehicle backed by prominent investors, including adman John Singleton. Early investments were made by the Riversdale Group (co‑founded by Paddy Coughlan and Andrew Kelly) and the fund is supported by key shareholders such as investment banker Mark Carnegie, John Singleton, former Qantas boss Geoff Dixon and property developer Allan Johnston.
The fund has boosted the value of its pub portfolio to more than $180 million and is scheduled to pursue a public listing in the first half of 2014, according to the article.
Recent deals include the Stock Exchange Hotel in Brisbane’s CBD, valued at about $34 million, and the Elephant Arms in Brisbane, which was purchased earlier in the year for about $27 million.
The acquisitions bring the portfolio to 11 pubs, located across Sydney and Brisbane.
The transactions for the Stock Exchange Hotel and Elephant Arms were brokered by commercial real estate firm Jones Lang LaSalle.
The pub industry has been returning to profitability after a tough few years, prompting major listed companies and investors to increase exposure through direct purchases or joint ventures.
Major listed companies mentioned include supermarket giants Coles and Woolworths, along with landlord ALE Property, all of which have increased their exposure to the pub sector via direct purchases or joint ventures with large private operators.
The initial pub investments were made by the Riversdale Group, which was co‑founded by Paddy Coughlan and Andrew Kelly.
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