Redcape swoops on Flagstone Tavern as pubs take off

The Flagstone Tavern in Brisbane=s south western suburbs.

Pub owner Redcape has again bolstered its Queensland holdings with the purchase of a newly-built pub in Brisbane’s south western suburbs.

The pub, developed by Monarch Hotels, is next to a shopping centre in a city centre developed by Peet Limited and MTAA Superannuation and it dominates trade in the housing estate.

Redcape’s move comes after it went on a spree in which it bought five Queensland hotels in the past three months, including the Saltwater Creek Hotel, The Prince Consort Hotel, the Commercial Hotel, the Lucky Tree Tavern, and The Willow Hotel.

HTL Property’s Glenn Price, Dan Dragicevich and Andrew Jolliffe handled the sale, which is seeing Redcape reinvest after the big ticket sales of the Cabramatta Hotel and El Cortez Hotel in Sydney.

MA Redcape Hotel Fund managing director Chris Unger said the acquisition of the Flagstone Tavern was “a continuation of our strategy to expand our presence in key growth markets and to increase the Fund’s distribution whilst providing long-term value for our investors”.

“We remain focused on identifying assets that align with our investment strategy and operational strengths,“ he said. The company recently boosted earnings guidance,” he said.

“Supported by strong trading results in our pubs and these capital management initiatives, we have further upgraded our distribution guidance for investors,” Mr Unger said.

The pub was picked up from Joel Fisher’s Monarch Hotels which had developed the property and then traded it for around six months before Redcape swooped.

Industry players said the purchase was structured as a long term leasehold of about 55 years, worth about $14m, with Monarch to retain the freehold, with rent reported to be about $1m.

While Monarch has kept a low profile and Mr Fisher was uncontactable, it has made a name as developer of new properties including The Waterfront dining precinct Shell Cove Shellharbour and as a pub owner across NSW and Queensland.

HTL’s Mr Price said that 2025 will be a year where the activity is focused around the south east of Queensland, with Far North and Western Districts hotels to also be active.

“Our successful sale of this significant and newly built hotel best highlights our considered view, being a continuation regarding the distinct theme and cadence of capital deployment by key industry actors extending beyond the primary market of NSW,” HTL’s Mr Jolliffe said.