iProsperity books major profit on Sydney Park Regis sale
Specialist adviser to wealthy Asians, iProsperity Group, has quietly sold its Park Regis Hotel in Sydney for $54.18 million, a 23% increase on its purchase price of less than two years ago.
The purchaser of the 122-room hotel that takes up 10 levels of the 45-level 27 Park St tower is the Yeh Group, controlled by hotel investor Michael Yeh, developer of the Sydney Hotel on the site of the former Spanish Club at 88 Liverpool St.
Selling agent Gus Moors of Colliers International says the marketing of the Park Regis attracted a number of international and domestic players, including institutions and rich individuals. The property was sold with the hotel management in place.
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It is understood Yeh sees the Park Regis Hotel as a longer-term investment for his family trust.
iPG chief executive Michael Gu, who bought the Park Regis in 2016 from a consortium involving Hong Kong-born hotelier Simon Wan, says he identified a clear strategic opportunity to buy the Park Regis in 2016.
“We predicted income would grow due to market dynamics,” Gu says. “This prediction has been realised with favourable net income growth during our ownership.”
Hong Kong-born hotelier Simon Wan. Picture: James Croucher.
iPG has undertaken refurbishments of the hotel as well as increased sales and marketing efficiencies, which it says are set to underpin higher average room rates at the Sydney hotel.
Further south, iPG recently paid about $200 million for Melbourne’s five-star Pullman on the Park hotel in the largest national hotel deal of the year.
iPG says the purchase of the Pullman on the Park was the next step in its plan to hold $10 billion worth of Australian property under management by 2020. It has previously predicted buoyancy in Australia’s hotel sector.
The settlement of the Park Regis Hotel sale is expected on October 31, with Colliers International agent Karen Wales also involved in the deal.
This article originally appeared on www.theaustralian.com.au/property.
