iProsperity muscles into race for Hyde Park hotel
Fund manager and investor Michael Gu’s iProsperity Group is one of three parties jockeying for the hotel component of a more than $1 billion 50-level apartment and hotel development fronting Sydney’s Hyde Park.
The site, which has approval for a hotel and 250-unit apartment tower, would replace the existing 38-level office block co-owned by Dexus and the late billionaire Stan Perron’s estate.
iProsperity is one of the nation’s more aggressive hotel buyers, rapidly building up a large empire of hotels including the 419-room Pullman Melbourne on the Park, which it reportedly bought for about $200 million.
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Dexus has plans to build a 350-room luxury hotel, retail and residential apartment block, including four levels of basement parking fronting 201-207 Elizabeth St.
Savills’ Michael Simpson is running the off-market campaign for the hotel and has shortlisted the three parties. He declined to comment.
The groups are believed to be partnering with operators, with a focus on finding a party to take over the $400 million completed hotel.
Sources says a number of big branded global hoteliers have expressed interest in the proposed hotel site, including Accor’s luxury Fairmont brand and American hotel behemoth Marriott.
In a separate move, site co-owner Dexus is trying to find a deep-pocketed group with the capacity to take on about 80% of its share in the project.
The Dexus process, run by Knight Frank, is designed to find a capital partner, most likely from Asia, to fund the building, including the apartments, which are likely to be ready in 2024.
This article originally appeared on www.theaustralian.com.au/property.
