Sydney, 24 September 2014 – JLL and CBRE Hotels have been exclusively appointed to offer the ‘freehold-only’ interest in the exclusive Golden Sheaf Hotel Double Bay For Sale by International Expressions of Interest. The property will be offered subject to a ‘long-term triple net leaseback’ to market-leading national hotel and hospitality group, Solotel.
As a modern ‘state-of-the-art’ fully integrated hospitality complex, and widely regarded as at the pinnacle of hotel facilities nationally, the Golden Sheaf Hotel occupies a strategic 1669m² underdeveloped site area and will include Lessor ownership of the valuable hotel licence and 30 gaming machine entitlements.
CBRE Hotels Director Wayne Bunz said; “We expect a diverse level of interest from traditional Eastern suburbs buyers along with other high net worth domestic and international buyers looking to land bank such a landmark Sydney hotel. Another focus will be the opening of the adjoining 5000m² Woolworths retail and commercial development, Kiaora, and the additional retail and community development proposed on land adjacent to the Golden Sheaf, which will help drive the hotel’s future performance.”
The hotel will be offered with a combined 40 year triple net lease to one of the Solotel Group businesses, with a straight 20 year first term and fixed annual rental growth of 3% per annum. The Solotel group own and/or operate some 17 hotels and 3 restaurants across the eastern seaboard including a number of highly awarded restaurants in joint-venture with celebrity chef Matt Moran including Aria Sydney and Brisbane, and Chiswick in Woollahra. The group recently won the right to extend their tenancy at the internationally recognised Sydney Opera Bar and have been chosen as the preferred operators for soon-to-be established new three level Barangaroo waterfront hospitality complex.
“The Solotel covenant, the coveted triple net lease structure and the exceptional underlying commercial property, undoubtedly ranks this passive investment opportunity alongside some of the lowest risk, quality annuity-based investment opportunities of any property asset class nationally or in the financial markets,” said John Musca JLL National Director.
Double Bay has enjoyed a remarkable resurgence to prominence as a luxury retail, commercial and high-end residential precinct in recent years. The much anticipated opening of the 140 room Intercontinental Hotel, redevelopment of the Double Bay cinemas and Kioara lands and a maelstrom of new fashion outlet and trendy bar launches such as Pellicanos, Casablanca and Mrs Sippy, have re-established the area as an investment and business epicentre.
The International Expressions of Interest process will close on 6 November 2014.
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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.