Nine Coast pubs sold in $200m deal
NINE Gold Coast pubs are among 87 venues that have formally changed hands in a deal between supermarket giant Coles and leisure group Australian Venue Co.
The $200 million purchase by AVC, chaired by Gold Coaster and former Mantra boss Bob East, which settled late on Monday, has created the nation’s second largest bar and pub operator.
The portfolio includes the Burleigh Town Tavern, Hope Island tavern, Runaway Bay Tavern, Diamonds Tavern in Varsity Lakes, Options Tavern in Helensvale, Lansdowne Road Irish Tavern in Surfers, Ferry Road Tavern in Southport, Wallaby Hotel in Mudgeeraba, and Coomera Lodge in Oxenford.
The acquisitions are part of a joint venture deal with US private equity firm Kohlberg Kravis Roberts, and will see Coles continue to manage and profit from its 243 retail liquor outlets while AVC manages and profits from the Spirit Hotels branded venues.
The sale takes AVC’s portfolio from 70 venues to 150, ranging from chef-hatted restaurants to suburban pubs.
Other properties include Fargo & Co and the Duke in Melbourne; Bungalow 8 and Cargo Bar in Sydney, The Regatta and Fridays in Brisbane, The Aviary and Victoria Park Hotel in Perth and Waterloo Station Hotel in Adelaide.
AVC CEO Paul Waterson said the deal would maximise the strengths and profits of Coles and AVC.
“AVC will focus its proven bar, food and entertainment management capabilities on the hotel operations while Coles will focus its retailing expertise on the associated bottle shop operations,” he said.
“On the hotel side, we will be backing the local market knowledge of the current Spirit Hotels venue managers and teams with AVC’s specialist marketing and venue management services to expand and enhance customer services and experience.
“As employees of a much enlarged, specialist pub and bar venue operator, we believe there will be broader employment and career opportunities for all employee team members.”
Mr Waterson said the group would consider more acquisitions in future.