HTL Property is pleased to advise that the Freehold interest of the Alliance Hotel in Brisbane’s upmarket Spring Hill has been purchased by a local investor.
The Real Property of the Alliance Hotel is located at 320 Boundary Street Spring Hill (Lot 1 RP10335. Title Reference 16779239) and occupies a 478sqm* site.
HTL Property’s Qld Director’s Glenn Price and Brent McCarthy, along with Asia Pacific Managing Director Andrew Jolliffe, and Ray White Commercial Director John Dwyer, conducted the sale process for the asset by way of a National Expressions of Interest campaign1.
Located in the established Brisbane suburb of Spring Hill, the Hotel has a long-standing history in the suburb having been first constructed in 1888*. The Alliance Hotel is currently leased to PT Hotels & Property Group Pty Ltd until 1 April 2022 (incl. options).
“The Purchaser of the Alliance Hotel is a well-known local investor who has strategically purchased assets within the hospitality sector previously, and who looks forward to working with the in situ Lessee in order to preserve the heritage of the asset” confirmed Mr Dwyer.
“The Alliance Hotel sale campaign generated strong interest across a wide spectrum of potential purchasers domiciled both interstate and across Queensland” advised HTL Property Director, Glenn Price.
“With an aggressive investment landscape operating prior to the advent of COVID-19, the ensuing business challenges further solidified interest in the sector as money returned to real property investments underpinned by strong fundamentals” added Price.
“The current cost of debt is attracting gentrified investors, private equity, family offices and corporate groups to expand portfolio’s given the compelling arbitrage delta which exists between debt and purchasing levels” Price concluded.
“The current investment-grade asset market is not restricted to the geographical top end of town; encouraging investors in the market to look to both semi-regional and regional areas seeking both opportunity and yield” indicated HTL Property Director, Brent McCarthy.
“Recent acquisitions by listed vehicle Hotel Property Investments (HPI) of the Acacia Ridge Hotel in Brisbane’s South West, and The Jubilee Tavern in The Whitsundays, have been the archetypal North Star for commensurate transactions” added McCarthy.
“The New Year market for A grade stock, whilst less than a full month into 2021, exhibits all the hallmarks of an allergic reaction to being inert as a result of the economic imposition brought about by CV-19” commented HTL Property Asia Pacific Director, Andrew Jolliffe.
“It therefore remains a magnet of optimism for well considered capital seeking refuge and taking comfort from both the inherent barriers to entry, and the significant quality of the actors already actively participating” Jolliffe concluded.
1Sold under instructions from Receivers and Managers
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