Investors are expected to flock to the Docklands following MAB Corporation’s decision to divest its investment apartments in The Sebel, Docklands – a hotel and serviced-apartment accommodation complex.
CBRE Hotel’s Scott Callow has been appointed to market the freehold investment interest of the 28 serviced apartments with carparks - which is expected to fetch circa $10 million.
Mr Callow said significant interest was expected from investors due to the lack of quality investment opportunities in the accommodation sector, particularly in the CBD and fringe locations.
“In the Melbourne CBD, Southbank and Docklands areas, the underlying land values have made the acquisition of commercial investments hard to find,” said Mr Callow.
“It’s rare for this type of investment to be offered to the market. Buyers have the opportunity to weigh up residential style investments against an asset such as this, leased under commercial net returns with annual growth.”
He added: “We expect to see a strong yield due to the current shortage of available assets and the property’s well-leased net income.”
The property is currently leased to Altitude Hotel Group and operates under The Sebel brand, with a six-year lease, five x five-year options and a net rent of circa $477,000 per annum.
The Sebel Docklands currently operates approximately 100 apartments in the complex. CBRE will be selling 24, one bedroom and four, two bedroom serviced apartments along with 28 car spaces. It benefits from a prime location in the Docklands precinct and close proximity to numerous multinational headquarters, Central Pier and Etihad Stadium.
Mr Callow added: “The Melbourne accommodation market is experiencing high demand and room rate growth, while Docklands in particular has matured as a location and is undergoing substantial investment.”
The investment apartments are to be sold by Expressions of Interest closing July 4, 2017 at 4pm.
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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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
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 (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.