Hotel Property Investments raising for pub buys

HPI is undertaking a raising to fund the acquisition of three new venues. Picture: iStock

Woolworths pub landlord Hotel Property Investments is raising up to $48m by way of a placement and share purchase plan through E&P and JPMorgan.

Shares are being sold at $3.04, which is a 3.5 per cent discount to the last closing share price.

The proceeds are being used for the acquisition of three freehold pub properties including the Mango Hill Tavern in Brisbane for $31.3m, the Summerhill Hotel in Melbourne for $22.7m and the Jubilee Tavern in Airlie Beach for $9.3m.

Hotel Property Investments owns a portfolio of freehold properties, comprising pubs along with associated speciality stores located on the pub sites.

Its tenants include Australian Leisure and Hospitality, a joint venture 75 per cent owned by the Woolworths Group, and the Kohlberg Kravis Roberts-owned Australian Venue Company, which last year purchased a portfolio of pubs from supermarket Coles.

AVC also acquired the pubs owned by Bruce Dixon’s Dixon Hospitality.