Pub investor on a Quest in Griffith
Pub investor the listed HPI group has made its first accommodation purchase, buying the Quest Apartment Hotel in Griffith, in the heart of NSW’s Riverina.
HPI paid $15.25 million for the newish property, buying it on a strong 7.5% yield.
The vendor of the 40-unit serviced apartment block was large regional development group Railway Street Holdings. The property attracted strong interest from Australian and Asian buyers through CBRE Hotels agents Scott Callow and Andrew Jackson.
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Developed on a 4000sqm site in the centre of Griffith, the hotel purchase marks HPI’s first move out of investing in the freehold pub market.
Jackson says the property, with a range of studio, one, two and three-bedroom apartments, was just 12 months old and sparked huge interest given investors were increasingly attracted to regional locations, such as Griffith.
“Pricing and scarcity in CBD markets is forcing investors to look further afield,’’ he says.
This article originally appeared on www.theaustralian.com.au/property.
