Redcape still holds a number of local pubs and bottle shops leased to Coles and also Hedz. The old Barrier Reef Hotel (Coles) is looking particulary shabby these days with limited opening hours. The most recent result earlier in the year from ING Entertainment Fund (IEF) wrote down the freehold value of the Courthouse Hotel from $6.1 to $5.6 million. Cost to date of the Courthouse to IEF since acquisition in 2006 is $11.5 million. A tragedy this heritage building was sold and turned into a pub.
There is a stark difference over rccent years between the performance of the comparable ALE (Woolies freehold pubs) and Redcape. ALE (ASX:LEP) raised capital and cut debt, while Redcape options were constrained by the Hedley holding and has been restricted to selling assets to cut debt.