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Hong Kong’s Ovolo snaps up Brisbane’s Emporium Hotel for $40m

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Hong Kong's Ovolo snaps up Brisbane's Emporium Hotel for $40m Read more: http://www.afr.com/real-estate/commercial/hotels-and-leisure/hong-kongs-ovolo-snaps-up-brisbanes-emporium-hotel-for-40m-20180110-h0ga8x#ixzz53rOLTjgq Follow us: @FinancialReview on Twitter | financialreview on Facebook

Hong Kong-based boutique hotel chain Ovolo has snapped up the Emporium Hotel in Brisbane’s Fortitude Valley for about $40 million in the first major hospitality deal of the year.

It is the second Brisbane hotel acquired by Ovolo Hotels in the space of seven months after it acquired the 50-room New Inchcolm Hotel & Suites in Brisbane for $16.5 million in June.

The 102-room Emporium Hotel at 1000 Ann Street was sold by its founder and managing director, Tony John, of the Anthony John Group. It opened in 2007, when it was positioned as Brisbane’s first luxury boutique hotel.

Hotel amenities include a rooftop pool, gm and sauna, cocktail bar and patisserie as well as conferencing and events centre.

Mr John said he had decided the time was right to sell the Fortitude Valley property as it would “allow the team time to focus on the 2018 opening of our luxury boutique Southpoint Emporium Hotel”.

Ovolo’s latest aquisition means the hotel chain, founded by Girish Jhunjhnuwala in 2002, now has five hotels in Australia, with two Sydney hotels in Woolloomooloo and Darling Harbour and one on Little Bourke Street in the centre of Melbourne.

“The Emporium Hotel in Brisbane was an obvious choice for the brand given its incredible success to date, its boutique nature and appealing location in the Fortitude Valley retail and dining precinct,” Mr Jhunjhnuwala said.

“We are excited to take this fantastic property to the next level with Ovolo’s signature luxury design interiors and all-inclusive hospitality concept,” he added.

The sale of the Emporium was brokered off-market by CBRE Hotels national director Wayne Bunz, who said it was a very positive sign for the local market heading into a new year.

“The sale highlights investors’ growing interest in the Brisbane hotel market. CBRE continue to field investor demand for investment opportunities, with the Emporium Hotel sale negotiated in a record time of just four weeks,” Mr Bunz said.

The Hong Kong operator’s flagship Ovolo Woolloomooloo and Ovolo 1888 Darling Harbour were recently ranked as the second and sixth-best hotels in Australia, according to TripAdvisor’s Travellers Choice Awards 2017.

Ovolo Hotels recently joined the co-working office movement after Ovolo Woolloomooloo signed a co-working deal with start-up TwoSpace, who will set up co-working spaces in the hotel’s lounge. It operates four hotels in Hong Kong.

Originally Published: www.afr.com

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Commercial

Investor Pays $64 Million For Premium Asset In Brisbane’s Fortitude Valley Precinct

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Investor Pays $64 Million For Premium Asset In Brisbane’s Fortitude Valley Precinct

Located at the gateway to the Fortitude Valley precinct, approximately 750 meters from the Brisbane CBD, the asset was sold by JLL on behalf of AM Valley Heart Pty Ltd, representing a net passing yield of 6.58 per cent.

Duncan Street’s asset comprises a commercial car parking facility for 464 vehicles, 2,816 square metres of office and 1,310 square metres of retail and substantial redevelopment potential of up to 30 levels.

The International Expressions of Interest campaign conducted in conjunction with CBRE generated significant interest with in excess of 200 enquiries from a diverse capital base, many of who were enticed by the asset’s strong tenant covenants, significant underlying land value as a 4,183 square metre site and multiple redevelopment options.

31 Duncan Street is 96 per cent by income leased with an 8.9 year WALE.

Around 62 per cent of the asset’s income is underpinned by a fifteen year lease to Secure Parking, which expires in 2031.

“The asset had the unique benefit of strong cash flow fundamentals and significant underlying land value,” JLL Director of Queensland Sales & Investments Luke Billiau said.

31 Duncan Street is situated in Brisbane’s Urban Renewal Precinct, which has consistently outperformed wider occupier markets, registering a 127.4 per cent increase in occupied stock. According to JLL, this outperformance has continued over the past twenty-four months with office vacancy decreasing five per cent from its January 2015 peak to 9.9 per cent.

Originally Published: www.theurbandeveloper.com

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Commercial

Sentinel Disposes Of Banyo Facility For $37 Million

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brisbane commercial

Sentinel Property Group has sold a warehouse leased to a subsidiary of BlueScope Steel in the Australia TradeCoast precinct on Brisbane’s northside.

Located on a 47,880sq m site at 920-928 Nudgee Road, Banyo, the steel processing and distribution facility was leased long-term to BlueScope until 2026.

The sale was negotiated by CBRE’s Ed Bull and represented a yield of around 6.70 percent. Sentinel acquired the Banyo site in April 2011 for $23 million.

Sentinel managing director Warren Ebert noted that the group had both bought and sold industrial property in the prime TradeCoast precinct, recently purchasing a waterfront bulk storage facility at nearby Pinkenba for $48.5 million in a leaseback arrangement with global diversified industrial chemical company Incitec Pivot.

“Our decision to sell this high performing asset is consistent with Sentinel’s strategy of buying at an opportune time and then selling based on our view of the market,” Ebert said.

The average prime yields in Brisbane’s industrial market now sit between 6.75 percent and 7.25 percent, reflecting limited on-market opportunities for quality stock.

The property comprises approximately 17,000sq m of warehouse and office space. The property is 10 kilometres from the Brisbane CBD, adjacent to the Brisbane Airport, and has direct access to the Gateway Arterial Motorway.

The facility offers an opportunity for further expansion with only 36 percent site coverage.

Brisbane-based Sentinel Property Group has a total national portfolio of more than 40 retail, industrial, office, land, tourism infrastructure and agribusiness assets across Australia, worth over $1 billion.

Originally Published: www.theurbandeveloper.com

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Commercial

Brisbane Retail Sale Sets Yield Benchmark

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brisbane commercial

Wondall Road Village has sold for $16 million in the latest sign of investor demand for premium retail opportunities.

The centre was acquired by a private Gold Coast family on a yield of 6.08%.

CBRE’s Michael Hedger and Joe Tynan sold the prominent Brisbane convenience centre on behalf of a local Brisbane syndicate Lomin Holdings.

“The yield achieved is the strongest that we have seen for an IGA-anchored asset in Queensland,” Hedger said.

“We continue to see new sources of capital entering the market that is prepared to pay a premium to secure retail assets that offer strong investment fundamentals.”

The near new, 1,873sq m convenience centre incorporates an IGA supermarket, a BP Service Centre and a five-bay car wash and is located 15km east of the Brisbane CBD. The total site area is 9,712 square metres.

Tynan said the result followed a series of strong sales transactions underpinned by IGA lease covenants, including the recent sale of IGA Yarrabilba on a 6.5 percent yield and Emu Park Village on a 6.91 percent yield.

Queensland retail success has made its way interstate as Brisbane-based development company Sentinel Property Group successfully flipped one of their Melbourne retail assets, the Dandenong Home Quarter complex, for a reported $30 million — the company acquired the asset 18 months ago for $29.8 million.

Dandenong Home Quarter

The complex occupies 3.2 hectares and returns annual rent of $2.24 million from 11 tenants including major retailers, Officeworks, Supercheap Auto and The Good Guys.

Originally Published: www.theurbandeveloper.com

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