Major pubs and hotels across Newcastle and the Hunter are set to change hands as part of a record breaking $500 million deal.
Sam Arnaout's Iris Capital has sold seven Newcastle and Hunter properties to Sydney-based hospitality operator Redcape.
Included in the sale are the QT Hotel and Sport Bar, the Sydney Junction Hotel, Edgeworth Tavern, Argenton Hotel, Hotel Elermore, the Gunyah Hotel and Peden's Hotel.
A further two Sydney hotels were also included in the deal.
The move follows Iris Capital building a strong presence in the pub and hotel business across Newcastle and the Hunter including the transformation of the East End.
"This transaction represents the successful completion of a strategy we commenced more than a decade ago to identify exceptional regional opportunities, invest with conviction and unlock long term value through active ownership and development," Mr Arnaout said.
"We are incredibly proud of what our team has built throughout the Hunter. From revitalising iconic hotels to delivering the QT Newcastle and the East End precinct, we leave behind assets that have become integral to the region's future."
There would now be a greater focus on properties outside Newcastle and the Hunter, Mr Arnaout
"The sale enables Iris Capital to redeploy significant capital into our next generation of mixed-use developments and strategic acquisitions across Australia," he said.
Along with the pubs, two of the properties also have development opportunities.
The Sydney Junction Hotel also has a DA for 272 apartments and the Gunyah Hotel 114 apartments.
The Hotel Elermore, located adjacent to the recently announced major Elermore Shopping Centre redevelopment, is expected to attract bigger clientele to the venue.
Sydney-based Redcape, which owns and operates pubs and hotels across the country, said it was attracted to the growing region.
"We're excited about these pubs - they're diversified, resilient, and underpinned by material real estate holdings. They will continue to benefit from growth in the region and our investment in them," said Redcape Managing Director, Chris Unger.
"This transaction continues our strategy to diversify our portfolio through long term growth opportunities, boosting its resilience and outlook as a result."
The deal was brokered by JLL Hotel & Hospitality Group's John Musca and Ben McDonald.
Mr Musca said the big-dollar deal comes at a time when pubs are a highly sought after and limited commodity.
He said it was also a deal that "is a vote of confidence" in the rapid development and growth of Newcastle and the Hunter.
