- Six more pubs puts HPI's total above 50, worth a combined $900M+
- They are all on 20-year leases, with the Australian Venue Company
- HPI shares closed at $3.18 today, with a market cap of $555 million
ASX-listed pub landlord HPI (Hotel Property Investments, ASX: HPI) has acquired six more Queensland hotel property assets, which are leased to the Australian Venue Company.
HPI has acquired (or contracted to acquire) the six properties for a combined $32.7 million with a weighted average yield of 7.75%.
The leases have an initial term of 20 years from the acquisition date.
The assets purchased are:
- Surfair Beach Hotel – $10.45 million – settled May 2021;
- Commonwealth Hotel, Clermont – $3.06 million;
- Grand Hotel, Clermont – $2.78 million;
- Capella Hotel, Capella – $3.34 million;
- Commonwealth Hotel, Roma – $9.78 million; and
- White Bull Tavern, Roma – $3.25 million.
While the Surf Hotel will settle this month, the others are all due to settle in June.
The acquisitions will be funded from available debt facilities.
This brings the total pub portfolio under HPI to almost $900 million across more than 50 properties.
“The acquisition of these assets demonstrates HPI’s strong relationship with AVC and our ability to transact efficiently to the benefit of all parties.”
Don Smith, HPI CEO
HPI shares closed at $3.18 today, with a market capitalisation of $555 million. They had dipped to $2.88 a month ago, and are still below a 12-month high of $3.40 on Christmas Eve 2020.
