The big money trade in Wagga’s pubs and hotels shows no sign of slowing down with the Red Steer Hotel and Motel the latest to be snapped up by investors.
A Sydney based operator, rumoured to be the Feros Group, secured the popular venue through business brokers HTL Property before it went to auction.
HTL Property director Xavier Plunkett said the Hotel’s location in Wagga’s rapidly expanding north made it an attractive investment.
“The strong growth in the Boman Industrial Estate and Northern Wagga Wagga residential growth corridor, as well
as the proximity to Charles Sturt University were key selling points for the asset,” he said.
The Red Steer boasts a sizeable 5000-sqm block, a 13-room motel, refurbished bars, bistro and popular beer garden, and lucrative gaming machine entitlements.
The property sold for around $10 million.
HTL Property has presided over the sale of eight hotels in Wagga Wagga in the past two years including Thomas Blamey Tavern for $25 million and the Victoria Hotel for $29 million.
Around $100 million has changed hands, signalling great confidence in the region’s economic future.
“We continue to see strong capital appreciation in the regional pub market. Undercapitalised hotel assets in strong regional centres such as Wagga Wagga continue to be highly sought after by experienced Sydney based hoteliers seeking value outside of traditional metropolitan markets,” Mr Plunkett said.
It’s understood that the new owners will close the venue for a short time for renovations and to settle in the new team.
The original Red Steer Hotel was established by the Perryman family in the 1970s according to Geoff Burch from the Wagga Wagga and District Historical Society.
After taking over a restaurant and garage they acquired the liquor licence from a pastoral hotel that had closed in November 1973 and licensed the Red Steer in 1979.