Melbourne group snaps up Novotel Twin Waters
Melbourne-based Shakespeare Property Group has swooped on the Novotel Twin Waters Resort on Queensland’s Sunshine Coast for about $100 million.
The deal is yet to be finalised with vendor the Abacus Property Group. Last year, the Chinese HNA Group pulled out of a deal to buy the resort.
The under-pressure HNA has been contracting its property operations around the world and last Friday offloaded hotel operator Radisson Holdings.
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HNA in 2016 also took an equity stake in Virgin Australia but in February 2017 pulled back from buying the Novotel Twin Waters resort for about $130 million.
HNA has been selling off local real estate, including a tower in Sydney’s York Street to Blackstone for $205 million, as it hits reverse on its $50 billion acquisition spree that saw it buy tourism-related assets. It also wanted the Sunshine Coast Airport but missed out to Palisade Investment Partners.
McVay Real Estate marketed the 361-room four-star Novotel Twin Waters resort, managed by Accor Australia, but was not involved in the latest deal.
The resort is adjacent to the airport, which Palisade is planning to redevelop and see more flights supporting a long-mooted expansion of Twin Waters.
Shakespeare Property is yet to unveil its plans but the property could be redeveloped to accommodate a major increase in accommodation from mid-scale to luxury.
The 48.6ha site, between the Maroochy River and the beach, was promoted as having the capacity for two more resorts.
Local media reported the plan may include a lagoon resort to the west of the existing Novotel and potentially 40 two-level villas on beachside lots.
Abacus, which did not comment, in 2016 sold other hospitality assets, including the Rydges Tradewinds Cairns hotel and the Rydges Esplanade Cairns.
Novotel Twin Waters is the Abacus fund’s last remaining asset after unit holders voted for a sell-down of assets three years ago.
Shakespeare is best known as a value-add investor that repositions, leases and sells commercial towers. It has a strong record along the east coast of Australia.
It has built up an investment team, including former JLL executive Robert Anderson, as it undertakes off-market deals.
The company, the real estate arm of Melbourne investment firm Prime Value, has been an asset trader, and is experienced in hotels. In 2015, it paid Sydney investor Robert Magid and Singapore-based Ascendas Hospitality Trust $75m for the Pullman Cairns International hotel.
– with Lisa Allen
This article originally appeared on www.theaustralian.com.au/property.
