Hospitality venue landlord Hotel Property Investments (ASX:HPI)
has splurged a total of $32.7 million on new property acquisitions in Queensland and secured lease contracts with Woolworths and Coles-affiliated firms.
The $555 million pub investor has added another six liquor service venues to its existing portfolio of 47 assets with a strong focus on Queensland and South Australia. The new sites include locations in Clermont, Roma and Marcoola in the Sunshine Coast.
Out of the newly acquired batch, the two Commonwealth Hotel sites, the White Bull Tavern, Capella Hotel and Grand Hotel cost the buyer $22.25 million. Meanwhile, HPI snapped up the Surfair Beach Hotel within close proximity to the Sunshine Coast Airport for $10.45 million.
Hotel Property Investments made these purchases with the knowledge that it would ink twenty-year tenancy agreements with Queensland Venue Company to lease the facilities. The new tenant is co-owned by Coles Group and the Australian Venue Company (AVC).
HPI emphasised the importance of the contract, “The acquisition of these assets demonstrates HPI’s strong relationship with AVC and our ability to transact efficiently to the benefit of all parties”.
The new lease deal marks the continuation of collaboration with AVC, following the two parties’ rental agreement for Jubilee Hotel at Airlie Beach on the back of HPI’s purchase.
Another tenant for the incoming properties is Woolworths-backed Australian Leisure & Hospitality.
HPI has sourced the funding for this spending spree from its bond issuance programmes with a weighted average yield of 7.75 per cent.
Shares in Hotel Property Investments (ASX:HPI)
are trading 0.3 per cent higher at $3.19