NEWS PROPERTY

Chinese conglomerate Nanshan Group, run by one of China’s richest men, has emerged as the buyer of the Pullman Sydney Airport hotel being developed by Goodman Group. It is understood the Shandong-based company paid about $84 million for the 229-room, five-star hotel being built at a cost of about $69 million and due to open towards the end of 2016. Nanshan was co-founded by self-made industrialist Zuowen Song, Chinese’s 76th richest man with a net worth of $2.8 billion, according to Forbes. The conglomerate started out as an aluminium manufacturer in the late 1970s but has since branched out into a diverse array of industries including real estate, tourism, apparel manufacture, energy, finance and education. Its Australian real estate interests include the Riverside Oaks golf course in Sydney’s north-west, which it acquired in 2009, and agricultural holdings. The new airport hotel on O’Riordan Street in Mascot, part of a $100 million development being undertaken by ASX-listed Goodman that will include office and retail components, is due for completion in the fourth quarter of 2016. The new hotel will be operated by Accor Australia. It was marketed for sale by Peter Harper of Jones Lang LaSalle Hotels, who declined to comment.

Publican Mitchell Waugh’s Public House Management Group has added to its portfolio of landmark Sydney pubs, acquiring the popular gastro pub the Four in Hand for around $8 million. It is the first time the hotel has changed hands in more than 25 years. The deal was brokered by Andrew Jolliffe and Joel Fisher of Ray White Hotels. The 4, as it is sometimes called, is in Sutherland Street in Paddington and is one of only two pubs in Australia whose restaurant has Two Hats status.

A consortium including Eagle Property Group and hotel entrepreneur Paul Fischmann has purchased four heritage terraces built in the late 1880s in Sydney’s Potts Point for about $12 million. The Bayswater Road properties, which house the well-known World Bar and Candys Apartment clubs, sit in an area of inner city Sydney set to undergo huge transformation. Once a late-night entertainment precinct, the Kings Cross area is becoming gentrified following new high-end apartment developments as well as licensing restrictions and lock-out laws resulting in the closure of many nightclubs.

Australian commercial properties, the office towers, shopping centres, logistics facilities and hotels, have just delivered the best total return – income and capital growth – since the heady pre-GFC days of 2008. The average of the total return for the 12 months to September 30 was 12 per cent, based on a 6.9 per income return and 4.8 per cent capital growth, according to the PCA/IPD Australia Property Index which covers $151 billion in assets and is now produced by MSCI. Office property was the big improver, and industrial facilities showed the best total return, but the real stars were hotels, with a 14.2 per cent total return, and the small healthcare sector, at 18.6 per cent.

Lantern Hotels has listed three of its pubs on the market, selling two venues in Australia and one in New Zealand. The ASX-listed hospitality group has recently put up for sale The Brisbane Hotel in Perth, The Dolphin Hotel in Sydney, and The Alberts Hotel in the North Island of New Zealand.

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.