Brokerage agency HTL Property today confirmed its role as exclusive negotiator for the proposed sale, to listed property trust Hotel Property Investments (ASX:HPI), of the freehold interests for both Sydney’s Gregory Hills Hotel, and Brisbane’s Acacia Ridge Hotel.
“HPI has entered into agreements to acquire two of Australia’s most prominent large format hotels for AUD$60m, covering in excess of a combined 30,000sqm* of prime commercial property and positioning the company’s strategic interests in both Sydney and Brisbane’s respective growth corridors” advised HTL Property’s Managing Director, Andrew Jolliffe.
Both hotels are being sold by the unrelated Vendors on a sale and lease back basis, indicating a long term desire by each to operate the valuable underlying businesses; whilst divesting the property component of each.
“We are working with numerous key clients to unlock value in their hotel investments, and this emancipation of capital can take on numerous complexions, with the creation of new leases but one alternative” added HTL Property National Pubs Director, Dan Dragicevich.
Both hotels to be acquired by HPI enjoy significant state based gaming rankings, with Gregory Hills ranked 37 in NSW at last count in December 2019, and Acacia Ridge regularly featuring in Qld’s top 10 hotels.
“The Acacia Ridge Hotel is firmly regarded as a top tier Qld hospitality holding, and the price achieved is reflective of the high regard in which the market has valued the opportunity” added HTL Property Director, Glenn Price.
The national hotel market enjoyed a record year in 2019 in terms of the consolidated transactional value, and HTL Property believes 2020 is on track to surpass the level previously achieved.
“Close to $1.5bn worth of transactions were facilitated last year, and our firm has closed $200m worth of sales nationally well inside the first two months of the calendar year alone, in what is traditionally considered the more modest of the four trading quarters” concluded Jolliffe.
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