Lantern to sell everything
And so it’s on: Lantern shareholders at this week’s annual general meeting voted to sell the last six properties in the group’s portfolio as part of the group’s turnaround strategy.
Lantern has been divesting its “non-core” pubs with some success.
The strategy has so far delivered an 18.5 per cent premium to book value for properties amounting to $60 million.
The board got the approval after telling shareholders market conditions for the sales were good and the company could get top dollar prices for the pubs.
It makes sense strategically. There’s a shortage of pub owners wanting to put their assets on the market. Combine that with low interest rates and investors looking for some place to park their capital and it stands to make Lantern good money.
For example, the last non-core’ pub Lantern sold, the Commodore Hotel, fetched a hefty 46.5 per cent premium to its book value at 30 June, 2016.
As chairman Graham Campbell told shareholders, this was a real opportunity for Lantern.
Given the strong market for gaming led hotels, the Board believes there currently exists a real opportunity to realise premium value on the Group’s property portfolio,” Mr Campbell said.
’“The passing of the Sell Down Resolution is intended to give the Board maximum flexibility to consider all offers that it may receive from interested third parties, including the option of selling the Group’s entire property portfolio.”
And right now, Lantern is in the process of selling Uncle Bucks Hotel in Mt Druitt.
Sitting on a 640 square metre entertainment precinct, Uncle Bucks boasts a 24-hour liquor licence and 27 gaming machines.
And it should get a good price.
According to Core Logic RP data records, it fetched $18 million the last time it changed hands in 2005, and that was 16 years ago.
The Lantern Group’s Campbelltown watering hole, The Ambarvale Hotel, has also been put on the market.
by Leon Gettler, October 27th 2016