Investors snap up Byron Bay Beach Hotel
The Byron Bay Beach Hotel has been sold to Melbourne investors for $70 million.
The hotel has a bit of reputation.
It was developed by John Cornell, who many remember as “Strop” in his television days on the Paul Hogan Show.
Cornell did well when he expanded from TV to hotel development and he sold the site for $44 million in 2007 to businessman Max Trigg.
After spending the next decade fixing up the site, Trigg sold the hotel to the Liberman-family backed Impact Investment Group.
The Impact Investment Group has the site as part of its strategy to create green and social impact initiatives over a three to four year period.
With more than $730 million in existing assets and under construction, IIG is looking to shift capital towards investments that generate social and environmental value while delivering excellent returns for investors.
"We're looking forward to settling this transaction in six months' time. It's a great hotel, and we've already made a lot of progress planning our environmental upgrades and how we'll work with the operator and locals to deliver real positive impacts for the Byron Bay community," IIG told the Sydney Morning Herald.
CBRE Hotels' Daniel Dragicevich and Wayne Bunz managed the off-market deal for IIG.
"There are very few landmark beachside freehold hotels like this in Australia, both in terms of scale and location. The irreplaceable oceanfront site, lease covenant, future development and reconfiguration upside and aspirational nature of the hotel provide a compelling mix for astute investors such as IIG," Mr Dragicevich told the Sydney Morning Herald.
IIG has established a put and call option deal with joint venture developers Frasers Property Australia and Sekisui House Australia that has each property in a separate investment syndicate.
Hotelier Dr Jerry Schwartz is an investor in the hotel fund.
IIG has over $400 million in funds under management.
by Leon Gettler, September 19th 2017
