NEWS PROPERTY

A private hotel developer and operator has paid $12.2 million for a hotel-approved site at 2-8 Sarah Street in Mascot, close to Sydney airport, with plans to build an eight-level property with 169 rooms. The approval includes a business centre, a gym, a sky-bar lounge on level 8 and 69 car spaces. The corner 1498 sq m site comprises two adjoining older style office-warehouse buildings and drew 25 offers. It was sold vacant by the first mortgagee on the property, through Colliers International’s Michael Crombie and Christopher Milou.

Lakeside Spa and Resort in Karapiro, south of Cambridge in the Waikato, has been placed on the market for sale. A Waikato resort is looking for a new owner to kick start its potential as a major rural tourism venture. Lakeside Spa and Resort in Karapiro was a fully self-contained, large-scale accommodation provider and function venue, spread over 35.44 hectares of rural farm land next to Lake Karapiro, south of Cambridge. The complex included 45, one-bedroom chalets of about 59 square metres each. It featured a conference centre, a health and fitness centre, heated swimming pool, spa suites, hydrotherapy and beauty treatment rooms, saunas and steam room. A one-bedroom manager’s apartment could be converted into a hospitality space overlooking the pool. There was a five-bedroom staff residence next to the main lodge.

Aurora Assets Management Group has grown its southeast Queensland portfolio to over 3000 apartments under management after acquiring the management rights to 220 apartments in Haven at Newstead in Brisbane from developer HCAP Developments for just under $$ million. The deal was brokered by Tim Crooks and Gareth Closter of Resort Brokers Australia.

Regional develop Railway Street Holdings has sold its Quest Apartment Hotel in Griffith, NSW for $15.25 million to a domestic hotel investor on a yield of 7.5 per cent. CBRE Hotels’ Scott Callow and Andrew Jackson brokered the deal.

Naughtons Parkville Hotel at 43 Royal Parade, is undergoing a redevelopment, but it won’t include a demolition, or extension. It also won’t be converted into a student accommodation venue (a fate it was reported the building had succumbed to in 2010). Instead the most noticeable changes to the building, will be cosmetic – save for two proposed new advertising signs, which will add significantly to the property’s potential rental return. Acrylic lettering signage to Royal Parade will be removed, as part of the application, being reviewed by the City of Melbourne. In nearby Grattan Street, Carlton, the University of Melbourne paid $4.5 million in 2015 for the Prince Alfred Hotel, which it has recently refurbished. The area made headlines in 2016 when local developers demolished another low rise hotel, known as the Corkman Irish Pub, in Leicester Street, Carlton. Following the raze, it was revealed the owners had pursued plans to replace the site with a 12-level apartment building.

The operators of the Padstow Park Hotel, the Feros family’s JDA Hotels, have acquired the pub’s freehold real estate for $26 million following an auction on Wednesday. JDA Hotels, which operate 10 pubs in Sydney and on the Gold Coast including Charlie Chans in the Sydney CBD and the General Gordon Hotel in Sydenham, bought it from private equity platform White & Partners, which is backed by the Ray White real estate family. The Feros family and White & Partners have collaborated on a number of pub deals, including selling the Tennyson Hotel in Mascot, which they jointly owned, to Justin Hemmes’s Merivale Group for an auction record of $37.05 million. Last year, the family sold the Allawah Hotel in Sydney’s south for $30 million to White & Partners, but continue to manage the pub.

Singaporean investors have bought the Holiday Inn City Centre Perth for about $65 million from long-term business partners Constantine Berbatis and George Atzemis. Located at 788 Hay Street, the 186-room hotel, which recently underwent a multimillion-dollar refurbishment and the addition of a new restaurant, is operated by UK giant Intercontinental Hotels Group (IHG) on a long-term management agreement running until 2025. It last traded for $44 million in 2009 when Mr Berbatis and Mr Atzemis – trading as Hub Land Dato Pty Ltd – bought it from Eureka Funds Management. The buyer was Legend Land Perth Pty Ltd, a subsidiary of Singapore’s Legend Land Australia. Selling agents CBRE described the buyer as “one of Singapore’s wealthiest private groups”. Little is known about Legend Land or who its ultimate investors are. The company’s directors are listed as Choo Bee Lian, of Singapore, and Malcolm Di Giulio, managing director of the Perth office of accounting firm Nexia. The acquisition of the Holiday Inn by Legend Land is one of a number of recent Perth hotel investments by Singapore-based groups. Selling agent Rob Cross from CBRE said it was about “six o’clock on the Perth hotel property clock” – implying close to the bottom of the market.

Airlie Beach’s Coral Sea Resort is being listed for sale for the first time in more than two decades with industry price expectations of around $16 million. The four-star resort’s Sydney-based owner Darrol Norman is divesting his family’s prized asset in the Whitsundays hub to focus on retirement.

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