Sydney, 10 December 2014 – The freehold interest in Sydney’s iconic Golden Sheaf Hotel has been sold to private eastern-suburbs investors.
CBRE Hotels and JLL’s Hotels & Hospitality negotiated the sale of the trophy asset on a sale and leaseback basis following a competitive Expressions of Interest process.
The hotel has been owned and operated for nearly 20 years by interests associated with hotel investment and operating group Solotel, recent winners of the tenders for the continued operation of the Sydney Opera Bar and for the new circa 1300sqm hospitality complex in Barangaroo.
The Golden Sheaf was sold on the basis of a long-term, triple net lease-back with fixed annual rental growth reflecting a circa 6.5% yield. It is the largest investment hotel sale in Sydney since the sale of the Castle Hill Tavern freehold interest for $54 million in 2008.
Daniel Dragicevich, CBRE Hotels Director stated, “The robust investor interest from both overseas and local parties highlights the flight to quality that is occurring in the national hotel market, with significant buyer demand for quality hospitality assets.”
The hotel occupies a 1669sqm site area with future development potential (STCA) and the sale included 30 gaming machines. Surrounded by the recently completed and award-winning Kiaora Lands Woolworths retail complex, the hotel resides at the heart of the Double Bay resurgence which has seen the newly opened five-star Intercontinental Hotel and retail demand create a business vibrancy not seen for over a decade.
John Musca, Director – Investment Sales, JLL’s Hotels & Hospitality Group, said, “The yield achieved on the sale was a deserved reflection of the quality of the tenancy covenant as an established, industry-leading national operator and the genuine trophy asset nature of this property.”
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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 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 350 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 atwww.cbre.com.au.