Sydney family buys Cremorne’s Minskys Hotel for $39m

Well-placed sources say Sydney publican Mitchell Waugh, whose PHMG group owns a number of Sydney pubs, has teamed up with the Karellas family with plans to carve up retail and hotel space.

Redcape, which owns and operates 36 sites worth $1.3 billion, was taken private in November by listed fund manager MA Financial (formerly Moelis Australia) after a disappointing three-year run on the ASX.

Minskys, which Redcape has owned for more than 15 years, went up for sale in late March to take advantage of “strong demand for quality hotel assets”. Price expectations were over $35 million.

Redcape CEO Dan Brady said proceeds from the sale would be used to pursue other opportunities and to strengthen its balance sheet.

The Minskys Hotel includes commercial offices above, occupied by Redcape.

The fund owns sites such as the Australian Hotel and Brewery in Rouse Hill, the Eastwood Hotel and the Willoughby Hotel. He has been an active buyer and seller of sites over the past few years as part of a strategy to rotate capital into value-added opportunities.

The sale of Minskys adds to a growing number of trophy pub deals at record prices as private and institutional investors seek assets in the cash-flow-rich sector, which has come back to life after being forced to hibernate for the first year of the pandemic.

Last month, the former Lord Mayor of Sydney, Nelson Meers, paid $160 million – a national record for pubs – for the Crossroads Hotel in Casula, south-west Sydney. The Pendle Inn hotel in the west of the city changed hands for $75 million this month.

Minskys Hotel sales agents John Musca, Ben McDonald and Gordon McFadyen of JLL said the public sales campaign generated 65 inquiries from local buyers.

Mr McDonald said the buyer was a local family, who acquired Minskys through their diversified property fund. He refused to identify them.

“The opportunity to capture such a high quality asset with clear and significant value potential via repositioning and/or strategic selling has fueled what has been one of the most competitive campaigns we have managed in over the past five years,” he said.

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