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Zagames sell pub to hotel landlord for $28m

The Zagame brothers have sold a pokies pub in Reservoir for $28 million to Australia’s second-largest listed pub landlord.

ASX listed Hotel Property Investments (HPI), which has a market capitalisation of $620 million, has added the Zagame-owned Edwardes Lake Hotel to its portfolio.

The Edwardes Lake Hotel was one of the last gaming assets owned by the Zagame family.

The Edwardes Lake Hotel was one of the last gaming assets owned by the Zagame family.Credit:

The TAB and Bingo venue at 257 Edwardes Street, on the edge of the suburb’s popular lakeside park, has a licence for 100 gaming machines and was originally purchased by Victor and Robert Zagame for $3.9 million in 2002.

The Zagame family runs an extensive luxury car dealer network and owns multiple freehold properties.

JLL’s John Musca, Will Connolly and Stuart Taylor and Cropley Commercial’s Steve Cropley and George Iliopulos negotiated the sale.

HPI trumped the shortlisting process with an unconditional bid and a very short settlement term, Mr Musca said.

The pub is operated on a 60-year, triple net lease and returns net annual income of $1.4 million.

The Reservoir acquisition is the latest in a string of deals for HPI, which has been on a buying spree in partnership with its major tenant, Australian Venue Company.

Much of the trust’s portfolio is in COVID-free Queensland but its latest financial results show it snapped up nine venues over the year to June, spending $96 million.

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