Sydney, 01 May 2016- The Corrimal Hotel in Wollongong has been sold for just under $10 million by long term owners, the Denmeade family.
CBRE Hotels, in conjunction with Ray White Hotels, sold the property on behalf of the family who has owned the hotel for nearly 20 years. It was purchased by Peak Investments, a newly formed private equity consortium headed by ex-Citigroup banker, Damian Kelly. It signifies Peak Investments second foray into the NSW gaming market following last year’s purchase of the Rose and Crown Hotel in Parramatta.
CBRE Hotels National Director, Daniel Dragicevich, said; “This sale is a good example of the market becoming more flexible around location when assessing quality opportunities. Sydney gaming assets are becoming very tightly held which has led to what are traditionally metro purchasers looking further afield.”
“The Corrimal Hotel has experienced a period of sustained growth following recent improvements and presented all the key ingredients for a continually successful operation – large retail site with car parking, solid business mix and in a high growth area.”
Ray White Director, Andrew Jolliffe, added; “The whole Illawarra region continues to be in high demand from experienced hoteliers and new funds alike and the Corrimal hotel sale comes hot on the heels of the Conniston Hotel and Unanderra Hotel (to the Denmeade family), which both changed hands in the last 12 months highlighting a continued confidence in the area,”
Long term owner Andrew Denmeade, who has retained both the Unanderra hotel and 2013 AHA Hotel of the year, Central Hotel in Shellharbour, said; “The sale of the Corrimal hotel represented the right time for our family to exit the asset, which has proved a great hotel and investment for us over nearly the last two decades.”
Mr Denmeade added that the sale did not represent in anyway an exit from the industry for the long term hoteliers and in fact they would be looking to re-deploy the capital, more than likely in the Illawarra area as soon as a suitable opportunity presented itself.
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.