Source: Hotel Property Investments
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  • Hotel Property Investments Limited (HPI) has acquired a South Australian pub portfolio for a total of $66.1 million
  • After completing the acquisition, HPI’s total assets are expected to surpass $1.1 billion
  • HPI also confirms an agreement has been reached to invest a further $30.4 million into a significant capex program across its portfolio
  • Additionally, HPI has entered an unconditional contract for the sale of the Acacia Ridge Hotel for $25 million
  • Hotel Property Investments (HPI) last traded at $3.48 per share before market open on December 16

Hotel Property Investments Limited (HPI) has acquired a South Australian pub portfolio for a total of $66.1 million.

The acquisition confirms an agreement has been reached with the Saturno Group.

It is done in conjunction with the Australian Venue Company, which has acquired the operating businesses on new 15-year leases with two extension options.

After completing the acquisition, HPI’s total assets are expected to surpass $1.1 billion.

Settlement is expected in February 2022.

HPI also confirms an agreement has been reached to invest a further $30.4 million into a significant capex program across its portfolio.

HPI will provide QVC with funding for major renovation works at 12 venues, with upfront payment in December 2021.

The additional rental and will escalate in future years in accordance with the terms of the individual leases.

Additionally, HPI has entered an unconditional contract for the sale of the Acacia Ridge Hotel for $25 million.

The proceeds of the sale will be utilised to partly fund the acquisition of the South Australian portfolio.

HPI has also recently completed a $3.8 million retail development at Ferry Road Tavern, which is fully leased with a year one forecast return of eight per cent.

HPI has increased available bank debt facilities by $100 million maturing in August 2024, which will be partly used to fund the transactions.

FY22 distribution guidance HPI maintains the current FY22 guidance of 20.5 cents per security, barring any unforeseen events and no material change in market conditions.

Hotel Property Investments (HPI) last traded at $3.48 per share before market open on December 16.

HPI by the numbers
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