Pullman hotel near Sydney Airport in Mascot attracts buyers
Both Chinese and local investors are exhibiting continued appetite for city hotels, with six parties short-listed to buy the new five-star Pullman hotel near Sydney airport, even though the airport authority is intent on developing a series of hotels nearby.
It is understood Australia’s largest hotelier, Accor, owner of the Pullman Hotel brand, is taking a 15 per cent equity stake in the 229-room hotel, which forms part of a major redevelopment of Sydney’s Mascot precinct by the listed Goodman Group. The complex, which is yet to open, includes two commercial office blocks and ground-floor retail space.
The prospective buyers — at least six are believed to be in due diligence — are lining up to pay as much as $90 million for the yet to be completed hotel. Selling agent Peter Harper of Jones Lang LaSalle Hotels declined to comment on the imminent deal on the site fronting O’Riordan Street, Mascot.
The ASX-listed Sydney Airport Corporation has been advertising for expressions of interest for developers to build a series of hotels within the aviation precinct. Just two privately owned hotels operate within the precinct and SACL believes there is demand for up to five more.
Meanwhile in Melbourne, Hong Kong’s Ovolo Group, a division of Hind Hotels & Properties, has changed its investment strategy and is looking to sell The Oaks on Lonsdale serviced apartments through Jones Lang LaSalle agent Mark Durran, with an asking price of more than $85m, a year after buying it.
“These guys were supposed to be coming in and making a real presence in the marketplace,” said one source close to the deal. “But it appears ... the company wants to get into more boutique hotels.”
Under the terms of the management agreement, the owner of the property can terminate the management agreement with Oaks owner, the Thailand-based Minor International at any time. Ovolo bought the 4.5-star Melbourne apartment complex, comprising 148 one and two-bedroom suites, from receivers and managers PPB Advisory last year.
Source: The Australian, Lisa Allen, 12th November 2015
Originally published as: Pullman hotel near Sydney Airport in Mascot attracts buyers
