Boutique new Pyrmont hotel nets $29m
A private Taiwanese family has defied the gloomy predictions for the hospitality sector and has snapped up a new 60-room hotel in the heart of Sydney’s Darling Harbour, for $28.7 million from Malaysia investment group IGB.
The property at 131-133 Murray St, Pyrmont, is on a 280sqm site, with the nine-level building also housing front and back of house facilities.
The hotel was sold unencumbered by management, meaning there is considerable flexibility over how it will be managed. The hotel was sold by Jordan Lee, Andy Hu and Michael Simpson of Savills. The said Pyrmont was a significant commercial precinct of the Sydney business landscape with tenants including Google, Accenture, Fairfax, Reuters, American Express, IBM, Veolia, John Hollard, Network Ten and radio stations.
Lee says Pyrmont is the primary choice for guests who wanted to be close to their CBD clients but wanted to be out of that environment.
Hu says Sydney is one of the most sought after hotel investment destinations in Asia Pacific and is now considered comparable with other international gateway cities including New York, Paris, London and Hong Kong.
Simpson says the interest received and pricing achieved is testament to the significant amount of pent-up capital seeking investment grade hotels in Sydney.
“The flexibility of being suitable for owner-operators, or being able to select your preferred operator also drove investor interest,” he says.
“Despite having seen some very low transaction volumes in the Sydney hotel market for some time, quality offerings like this continue to attract interest from domestic and global capital which has been unsatisfied due to a shortage of available investment grade hotels for sale in Australia,” he says.
This article originally appeared on www.theaustralian.com.au/property.
