Chairman Geoff Dixon says Australian Pub Fund will buy more hotels before any float
THE high-powered investors behind the Australian Pub Fund will acquire more hotels before they look to a float, chairman Geoff Dixon said yesterday while announcing a new chief executive for the group, which is backed by adman John Singleton and investment banker Mark Carnegie.
“Listing will come when we have scale. There’s many opportunities for the fund and listing is one of them sometime in the future,” Mr Dixon said.
The $200 million entity comprising 10 pubs in NSW and Queensland has appointed former Solotel boss Andrew Gibbs as chief executive following his 24-year career with the hospitality management company that sports 24 venues in NSW and Queensland.
Mr Gibbs, who started with APF on Monday, replacing Paddy Coughlan, who resigned in April, said he was looking for pubs with a good mix of revenues, not just gaming.
“We are looking at a period of consolidation, once we feel we are in a position to grow we would be looking at acquisitions,” Mr Gibbs said. “While location is important, we are looking for a good mix of trade.”
Mr Dixon said the fund, which owns Sydney’s Kinselas Hotel in inner-city Taylor Square and the Marlborough Hotel in inner-west Newtown, had grown significantly over the past 12 months while several venues had also undergone major refurbishments.
“I am excited by the appointment of an expert portfolio manager such as Andrew Gibbs, which will ensure organic growth of the portfolio,” Mr Dixon said. Industry sources said Mr Gibbs had the skills to see the group through to a listing.
Sydney-based MH Carnegie will continue as fund manager for the group, but the largest investor is Sunsuper, which has so far sunk $65m into the portfolio.
Apart from its eight Sydney assets, the APF controls the Elephant Arms and the Stock Exchange Hotel in Brisbane. The Stock Exchange was bought in 2013 for a state record of $35m.
Mr Coughlan said he was remaining on as founder and a shareholder and was in charge of acquisitions for the group.
While fresh private equity is pouring into the sector and family publicans are also expanding, pubs are now attracting interest from foreign investors. “I am now starting to meet people who have Chinese investors who want to put funds into the pub space,” JLL national director, pub investment sales, John Musca said.
Source: The Australian - 7 August 2014
