NEWS PROPERTY

Singapore’s M & L Hospitality, controlled by hotel tycoon Michael Kum, has acquired a 1180 square metre hotel development site at 65 Sussex St in the Sydney CBD for about $22 million. The former electricity substation was bought off Alfasi Property Development. A mid-scale hotel, designed by architects Fitzpatrick + Partners, is due to be completed by late 2017.

Metro Property Development is close to snaring a buyer for its $13 million management rights, with groups such as the listed Mantra bidding up to 5.2 times the earnings of the portfolio of high-rise apartments. Resort Brokers Australia’s Tim Crooks was appointed to sell the management rights for the 905 apartments across four towers in Brisbane’s inner city. Offers of up to 5.4 times were also received, source said.

The Mornington Peninsula’s Eagle Ridge Golf Club is selling to a Chinese conglomerate for about $9 million. The 18-hole championship course and clubhouse at 215 Browns Road, Boneo, about an hour’s drive from town, was known as the Carlogie Golf Course until a major redesign by Australian amateur golf champion Kevin Hartley 16 years ago. Covering 47 hectares, Eagle Ridge has the potential to be repositioned as a major resort-style conference centre capable of accommodating large functions, including weddings. The course currently competes for players with the nearby Moonah Links, The Dunes and St Andrews. CBRE’s Lewis Tong, Scott Callow and Mark Wizel declined to comment about the Eagle Ridge campaign.

Novotel Queenstown has sold for more than $90 million in the biggest deal of its kind in nearly a decade, according to agents Collier International. Collier’s national director of hotels, Dean Humphries said the 273-room hotel – purchased by a New Zealand hotel investor – was one of seven owned by US Company REIT Host Hospitality. It was the largest single hotel transaction in New Zealand in nearly 10 years, he said. REIT Host was looking to divest all its hotels in the Asia Pacific region and move capital back to the United States to take advantage of improving conditions there, he said. Novotel Queenstown’s sale caps a year in which just over $290m worth of hotels have changed hands, just shy of the peak in 2010, when nearly $300m worth of hotels were sold. Other sales this year included the Novotel Ibis Ellerslie Auckland for more than $55m, the Kingsgate Wellington, Chateau on the Park Christchurch and Hotel Grand Chancellor Auckland Airport. The 200-room Ibis Wellington and 139-room Novotel Wellington are also on the market.

Confidence in the central business district hotel market surprisingly tumbled in the third quarter of the year, as property professionals recalibrated expectations for capital growth, the latest NAB Commercial Property Survey shows. The index shows hotels fell from a positive reading of 38 to zero over the third quarter, with capital values falling 2.8 per cent, based on a survey of 250 commercial property professionals.

Private equity house L90 Capital has snapped up the Salisbury Hotel in the Sydney suburb of Stanmore for about $8.5 million. The deal was brokered by Andrew Joliffe and Joel Fisher, of Ray White Hotels. The agents declined to comment on price and buyer. It is understood well-known publican Gerard Dore, who operates the Beach Road in Bondi and Tilbury Hotel will be the operator.

A popular Irish-themed pub in Brunswick has sold to developer Peregrine Projects for $6.03 million, with plans to add a five-storey apartment block to the site.

Arc Education Group is converting the Landsdowne Hotel in Sydney’s Chippendale into an Academy of Music and Performing Arts. The Proposed development at 2-6 City Road will be used for undergraduate and postgraduate courses in music and the performing arts.