The big money trade in pubs and hotels in Wagga shows no signs of slowing down with the Red Steer Hotel and Motel the latest to be taken over by investors.
A Sydney-based operator said to be Feros Group secured the popular venue through commercial brokers HTL Property before it went up for auction.
HTL Property manager Xavier Plunkett said the hotel’s location in the growing north of Wagga made it an attractive investment.
“The strong growth of the Boman Industrial Zone and the Northern Wagga Wagga Residential Growth Corridor, as well as
as proximity to Charles Sturt University was a key selling point for the asset,” he said.
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The Red Steer has a sprawling 5,000m² block, 13-room motel, refurbished bars, bistro and popular beer garden, plus lucrative slot machine rights .
The property sold for around $10 million.
HTL Property has presided over the sale of eight hotels in Wagga Wagga over the past two years, including Thomas Blamey Tavern for $25 million and the Victoria Hotel for $29 million.
About $100 million changed hands, signaling great confidence in the region’s economic future.
“We continue to see strong capital appreciation in the regional pub market. Undercapitalized hotel assets in strong regional centers such as Wagga Wagga continue to be highly sought after by experienced Sydney-based hoteliers looking for value outside of traditional metropolitan markets,” Mr Plunkett said.
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It is understood that the new owners will close the venue for a short time for renovations and to settle into the new team.
The original Red Steer Hotel was established by the Perryman family in the 1970s according to Geoff Burch of the Wagga Wagga and District Historical Society.
After taking over a restaurant and garage, they acquired the liquor license of a pastoral hotel which had closed in November 1973, and licensed the Red Steer in 1979.