Perth

Change of hands on the cards for Fremantle hotel landmark

CBRE has been appointed to steer the marketing campaign for the Perth landmark, which originally opened in 1897 as Fremantle’s first hotel.

02 Aug 2018

WA property syndicate Primewest has moved to sell one of Perth’s most well-known hotels, the historic Esplanade Hotel in Fremantle. 

CBRE’s Aaron Desange, Ryan McGinnity and Chloe Mason have been appointed to steer the marketing campaign for the Perth landmark, which originally opened in 1897 as Fremantle’s first hotel. 

The iconic building, located on the corner of Marine Terrace and Essex Street, has been extensively refurbished and restored in recent years to create what is now regarded as one of Perth’s premier accommodation and conference facility venues. The offering provides diverse income streams derived from 300 guestrooms, four food and beverage outlets and extensive conference facilities. 
 
The property has a significant underlying land value and is situated over two sites with a total area in excess of 1.2ha. Included in the sale is a 3,043sqm site located at 7 Essex Street, situated directly opposite the hotel, comprising 172 car bays, a 78sqm leased retail tenancy and 314sqm office. This component of the property offers substantial future development potential with the ability for an incoming purchaser to capitalise on the ongoing gentrification of Fremantle.

Mr McGinnity commented on the campaign: “The opportunity to secure one of Perth’s largest hotels will ignite strong investor interest from local, interstate and international groups. 

“With Fremantle being WA’s most visited tourism precinct after the Perth CBD, the sale of the Esplanade Hotel represents an outstanding opportunity to acquire a well-established operation that has strong connections to the area’s rich history,” Mr McGinnity added.  

Mr Desange said significant investment in the Fremantle area - including a public and private development pipeline spend exceeding $1.3 billion – would have a direct flow-on effect to the area’s tourism and retail industries. 

“Fremantle has not seen this level of development and investment since the America’s Cup over three decades ago. This boost will play an important role in driving tourism and economic growth in the medium term – ensuring the historic city remains a key Western Australian tourism destination,” Mr Desange said. 

“The Esplanade Hotel will no doubt continue to form an important part of Fremantle’s growing future, being one of the Port City’s most highly regarded and well patronised hotels.” 

Mr Desange noted the ability to gain vacant possession for an asset of this calibre was rare.

“Coupled with the future development potential and improving fundamentals of the Western Australian economy, will ensure strong interest from multiple investors,” he added.

Primewest’s founding Director, David Schwartz commented: “We have invested considerable funds in refurbishing, modernising and adding facilities to the hotel enabling it to successfully compete with the new hotel entrants in the market.” 

Expressions of Interest close Thursday 6 September 2018 at 3.00pm AWST.For Australian/international news or global stories, follow us on Twitter: @cbreaustralia

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), 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 2017 revenue). The company has more than 80,000 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.

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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of 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 https://www.cbre.com.