Punthill Brisbane sale to fund expansion plans
One of Brisbane’s most highly acclaimed luxury apartment hotels is being offered to the market on a sale and leaseback basis, as its owners look to recycle the capital to fund further expansion.
The property, located at 40 Astor Terrace, Spring Hill, includes the Punthill Brisbane premium apartment hotel, Jak+Hill restaurant and bar tenancy, over 200sqm of commercial office space, and a large carpark.
The fully-leased property occupies a 1801sqm freehold site and was extensively refurbished in 2012.
JLL Hotels and Hospitality senior vice president of investment sales, Peter Harper, says: “The mixed-use property is fully leased on a triple net basis and offers income security via strong lease covenants, attractive annual and market reviews, and a weighted average lease expiry of 9.7 years”.
“This is significant for a passive investment opportunity in Brisbane across all asset classes.”
The Punt Hill property includes a hotel, restaurant, bar, office space and a car park
The 4.5-star Punthill Brisbane comprises 71 keys, spread over 70 studios and one two-bedroom manager’s apartment, together with conference facilities, a swimming pool, gymnasium and associated guest amenities.
Punthill Apartment Hotels wants to capitalise on strong market conditions and recycle capital into further expansion opportunities.
This is significant for a passive investment opportunity in Brisbane across all asset classes
Alan Caras, director of Punthill Apartment Hotels, says: “Capital from the sale of 40 Astor Terrace will fuel Punthill’s large-scale expansion plans – 287 keys are already slated to be added in 2016 and 2017 across three new Melbourne hotels in the CBD, inner north and eastern commercial precincts.”
“The group is also scouting sites in the Brisbane and Sydney CBDs and outer commercial catchment areas, with a vision to build a national apartment hotel network over the next decade.”
The building also includes office space
Punthill Apartment Hotels is one of Australia’s most prominent serviced apartment hotel operators, with 13 properties across Australia.
Speaking about Punthill Brisbane, JLL Hotels and Hospitality senior vice president of investment sales Paul Fraser adds: “We expect this offering will tick all the boxes for investors in the market place through excellent property fundamentals, a strong and stable earnings profile, and a city undergoing considerable growth and transformation, with over $5 billion of infrastructure and development projects currently underway.”
JLL Hotels and Hospitality group’s Peter Harper and Paul Fraser will exclusively market the property by way of a public expressions of interest campaign.
