Sydney, 27th June 2013 – Toga Group is moving to capitalise on increased activity in the Sydney hotel market with the sale of the former Mansions Hotel in King Cross.
Joel Fisher and Daniel Dragicevich of CBRE Hotels have been appointed to market the ground floor stratum, which is located beneath The Manor apartment complex at 18 Bayswater Road.
Mr Dragicevich said the sale campaign coincided with a marked pick up in investment activity in the Sydney hotel market. CBRE Hotels has sold nine individual hotels in 2013, most recently the Moonee Beach Tavern for circa $4 million and the Bristol Arms Hotel in the Sydney CBD for approximately $8 million.
“We have certainly noticed more buyer enthusiasm which has been fuelled by a dilution of legislative risk as well as the cost of funding being at historically low levels,” Mr Dragicevich said
“Corporates and larger investment groups are driving the majority of activity, however for the first time in years we are seeing various new entrants targeting the hotel sector which is helping to underpin buyer competition.”
Toga acquired the high profile Mansions Hotel site in early 2011 and are in the final stages of redeveloping the upper floors of the building into 43 apartments.
The basement and ground floor levels of the building were stratum subdivided to provide for the new hotel venue, which is located at the high profile intersection of Bayswater Road and Kellett Street, in the heart of Kings Cross.
Mr Fisher said the 888sqm stratum provided the opportunity for a buyer to construct, fit-out and launch their own venue in the tightly held Kings Cross precinct.
“This is a rare opportunity, giving the new owner a blank canvas to launch a brand new venue,” Mr Fisher said.
“The location benefits from significant foot traffic and passing trade, which was reflected in the strong historic cash flows generated by the previous Mansions Hotel. The stratum also includes a hotel licence with favourable trading conditions and 30 gaming licences.”
Expressions of Interest close Friday 9th August 2013.
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