Preston’s Bell City complex set to reap $180m
Real estate fund manager Elanor Investors Group is putting Bell City, a landmark hotel, student accommodation and office complex in Melbourne’s northern suburbs, on the block with expectations of more than $180 million.
The move comes after the very active fund manager set up a new managed fund that bought the Bluewater Square shopping centre in the Brisbane suburb of Redcliffe for $55.25 million.
That deal took Elanor’s stable of assets to about $1 billion.
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The sale of Bell City comes after the company added significant value to the property after buying it from the private Asian Pacific Group for $142.9 million in 2014. The mixed-use complex comprises 844 hotel rooms, commercial offices and a residential development site. It has two hotel brands — Mantra and BreakFree — and the office area spans six floors. The budget hotel brand also houses some student accommodation.
Part of the site can be redeveloped, with a permit in place for a new complex of 377 apartments, 520 car parks and commercial space.
The Bell City complex includes a Break Free hotel.
Elanor installed the hotel manager after buying the property but it is available with vacant possession.
This feature, along with the substantial development potential, could see the complex sold in one line to a buyer able to maximise its value, or it could be carved up among different groups. Potential buyers that specialise in hotels, apartments, student accommodation or even the emerging multi-family apartment sector are being targeted.
Elanor, which recently set up a specialist Elanor Metro and Prime Regional Hotel Fund, is selling after a number of unsolicited approaches.
JLL Hotels & Hospitality Group managing director, investment sales, Australasia, Mark Durran, is handling the offer, which is one of the largest for a hotel property this year.
The Elanor trust selling the hotel is near the end of its life and an incoming buyer could co-invest with the company in future, as it has built up a major hotel platform. Elanor has been an active buyer, scooping up value-add accommodation assets.
This article originally appeared on www.theaustralian.com.au/property.
