Woodpecker Bar & Grill, a popular watering hole in the fast-growing Burpengary Meadows area between Brisbane and the Sunshine Coast, has been sold to pub giant Australian Venue Co for $48.6 million as part of a four-property portfolio deal.
Australian Venue Co purchased Woodpecker and three other pubs — Hotel Allen in Townsville, Ball Court Hotel in Melbourne’s Sunbury, and Royal Mail Hotel in Noosa’s Tewantin — from landlord Hotel Property Investments (HPI). The total sale price matched the $48.6 million book value.
The acquisition paves the way for Australian Venue Co to undertake major redevelopment works at Woodpecker and the other venues. With over 200 pubs and $1.1 billion in revenues, AVC has a “proven track record” of enhancing properties through strategic investment, according to CEO Paul Waterson.
“We are confident that the capital investment program announced today with our landlord, HPI, will deliver material operational improvements and transform these venues into modern properties that become the cornerstone of local communities.” Waterson said of the company’s renovation plans.
In the deal with HPI, the landlord agreed to simultaneously reinvest sale proceeds into upgrading several of its retained Queensland and South Australian hotels to the tune of $50 million. This includes $23.7 million being immediately put into properties like The Strand, Berserker Tavern and Brighton Hotel in Queensland.
“Despite challenging capital markets conditions, we remain committed to implementing initiatives to further enhance HPI’s market leading portfolio and drive long-term securityholder returns,” said HPI’s Acting CEO Blair Strik, calling the pricing on the four pubs “attractive.”
For the booming Burpengary Meadows region, the redevelopment of Woodpecker could elevate the area’s dining and entertainment offering. The suburb’s population has swelled in recent years as a key northern growth corridor for Brisbane.
The Woodpecker acquisition comes after private equity firm PAG recently took a controlling stake in Australian Venue Co from KKR earlier this year. It marks AVC’s first major move since that deal.
Settlement on the Woodpecker and Royal Mail Hotel sales are expected within 12 months, while the other two pubs will change hands imminently.
Published 25-March-2024
