$100m yield expected from Four Points by Sheraton sale
The Pacifica Partners joint venture is preparing to put the Four Points by Sheraton on the block. Source: News Limited
The Pacifica Partners joint venture between Singapore’s GIC Real Estate and US-based hospitality giant Host Hotels & Resorts is preparing to put the Four Points by Sheraton on the block in a move that could see it reap about $100 million.
The venture swooped on the former Citigate Perth for $61m in 2012 and benefited from strong trading during the resources boom after pouring millions into revamping the property and calling in a new operator.
The pair bought the hotel from the unlisted PFA Diversified Property Trust and the 278-room four-star property was substantially upgraded as they spent about $17m on refurbishing and rebranding the hotel as a Four Points.
That move brought US hotel operator Starwood back into the Perth market and the hotel will be sold with a long-term lease in place.
Starwood has also been expanding in Perth with the signings of The Westin Perth and Aloft Perth Rivervale.
The Perth hotel market is seeing influx of new luxury projects with Hilton planning two DoubleTree hotels and a new Ritz Carlton as part of the Elizabeth Quay waterfront project, to be developed by Hong Kong-listed Far East Consortium.
GIC has a 75 per cent stake in the Four Points with the US real estate trust holding a 25 per cent interest.
GIC has called in Wayne Bunz of CBRE Hotels to market the five-star property but he declined to comment.
Separately, GIC is selling the Westin Sydney on Martin Place for more than $400m.
Source: The Australian - 26th March 2015
