Värde Partners and York Capital Management Sell Redcape Hotel Group to Moelis Australia

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June 28, 2017

New South Wales and Queensland Pub Group’s leading portfolio and experienced team appealing

SYDNEY – Värde Partners and York Capital Management today agreed to sell Redcape Hotel Group to Moelis Australia for A$677 million. Redcape is one of Australia’s largest operator of hotels, with 25 properties in New South Wales and Queensland. The deal is expected to close in July 2017.

The sale to Moelis represents the final stage of ownership. Värde and York acquired Redcape in 2012. The Coles freehold portfolio was listed as Hotel Property Investments in 2013.

“The hotel and pub market in Australia continues to be strong,” said Haseeb Malik, Senior Managing Director for Värde Partners. “Partnering with York Capital, we have been able to position the Redcape properties to thrive in that market,” he continued.

Wyatt Wachtel, Managing Director at York Capital, said: “We are pleased to have partnered with Värde on this successful investment and believe Redcape is well positioned for the future.”

The Redcape portfolio consists of 25 gaming focused hotels, 22 of which are located in New South Wales and three in Queensland. In New South Wales, the Redcape portfolio has a strong market position benefitting from the population growth corridors of Sydney. The portfolio contains 18 of the top 200 gaming hotels in New South Wales. On completion of the transaction, the majority of Redcape’s existing head office staff will be employed directly by Moelis Australia and will continue to operate the Redcape portfolio of gaming hotels pursuant to a hotel operating agreement.

Värde and York were advised by Goldman Sachs and Arnold Bloch Leibler. Moelis Australia was advised by KL Gates.

About Värde Partners:
Värde Partners is a $12 billion global alternative investment firm that employs a credit-oriented, value-based approach to investing across a broad array of geographies, segments and asset types, including real estate, corporate credit, mortgages, specialty finance, and transportation. The firm sponsors and manages a family of private investment funds with a global investor base that includes foundations and endowments, pension plans, insurance companies, other institutional investors and private clients. Now in its third decade, Värde employs 250 people with main offices in Minneapolis, London and Singapore and additional offices around the world.

About York Capital Management:
York Capital Management is an investment firm that was established in 1991. The firm pursues a multi-strategy investment style and manages over $16 billion. The primary offices are in New York, London, and Hong Kong.