Sydney, 25 March 2014 – The 25 room Victoria Court Hotel Sydney has been purchased by Jude and Graham Turner.
The Turner’s are the owners of Spicers Group and Jude Turner plays a central role in the Spicers vision - sourcing, designing and styling the retreats - while her husband, Graham, brings his travel industry experience as co-founder of Flight Centre Pty Ltd and other successful international businesses. The group currently owns seven high end boutique assets, with six of those in Queensland and the other in NSW’s Hunter Valley.
CBRE Hotels’ Andrew Jackson and Paul Kapiris sold the property at a hotly contested Auction for $5.9m, equating to $236,000 per room and a 7.3% passing yield.
Andrew Jackson commented “Private investors are not often presented the chance to purchase a hotel so close to the Sydney CBD. The assets are tightly held due to their simplicity of operation, consistent cash flows and continuing positive Sydney hotel market fundamentals.
The current interest from private investors in Sydney accommodation assets is as high as we have seen it for over a decade.”
Paul Kapiris commented “With over 200 enquiries, 30+ inspections and 7-8 genuine bidders at the auction, we were confident that the campaign would result in a successful sale on the day. Interest came from domestic and international investors, with good interest from a number of Chinese groups keen to secure a foothold in the tightly held and lucrative Sydney hotel market.”
Leading Hotel valuer, Heath Craig from Landmark White, is not surprised by the yield.
“Small hotels with vacant possession of management in popular inner city locations such as Potts Point often have strong underlying real estate value which tends to reflect in lower passing yields for well positioned hotels”
“The purchase of these types of properties is not always initial yield driven. Purchasers are also looking at longer term capital growth and an investment that they can be actively involved within.”
It is understood that the Turner’s have plans to re-develop the two adjoining heritage terraces in to a boutique hotel asset to fall in line with the high-end Spicers Group brand.
For Australian/international news or global stories, follow us on Twitter.
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.