Deals of the Week - 3rd June 2024

Western Australia 

RIVERVALE- $40 million 

After purchasing Dockland's The Four Points by Sheraton Hotel in February, Hiap Hoe Limited has continued expanding its Australian hotel portfolio with the acquisition of Perth's The Great Eastern Motor Lodge. 

The Great Eastern Motor Lodge sits on an 11,892 sqm freehold site, housing 198 apartments across various product offerings, Hiap Hoe's final purchase price reflects a room rate of just over $200,000 per room. 

The deal was managed by JLL's Andrew Langsford and Sean Flynn.

RIVERVALE - $17 million 

A US-based investor has made their first foray into the Australian hotel market with the purchase of the Flag Motor Lodge. 

The Flag Motor Lodge occupies approximately 9,865 sqm of freehold land, holding 116 rooms, a restaurant, a swimming pool, and generous parking. 

The deal was managed by JLL's Andrew Langsford and Sean Flynn.

New South Wales 

WAVERLEY - $9.25 million 

An apartment block and two townhomes on a 699.3 sqm block at 313 Bronte Road have sold in one line, in a deal negotiated by Knight Frank's Demi Carigliano and James Masselos in conjunction with Clint Ballard of Sotheby’s International.  

The Waverley property was sold by vendor Danny Caretti, who first moved into one of the units on the site as a student in 1980, and then over time purchased each unit in the block of four one by one from his landlady. 

ROCKDALE - $4.5 million 

An office building in Sydney’s south has sold to an owner-occupier in an off-market deal. 

The property at 633 Princes Highway, known as the Leader Newspaper Building, consists of a 1,532 sqm four-storey building with 1,010 sqm of net lettable area and a car park on a 563 sqm site.  

It was purchased by an owner occupier from a private investor, in a deal negotiated by Knight Frank’s Demi Carigliano, Anthony Pirrottina, Alex Guilfoyle and commercial buyers’ agents Stephen Grant and Will Dawson of The Grant Group. 

Victoria 

ELSTERNWICK - $5.2 million 

The developer of the brand-new Elsternwick Village mixed-use development has successfully offloaded the asset, reflecting a yield of 7.7%. 

Located at 14 Ripon Grove, the asset was purchased by a local private investor and came leased to global fitness brand Anytime Fitness, holding a rental income of $402,000 plus GST. 

The deal was managed by Aston's Jeremy Gruzewski and Joshua Colosimo.

Queensland

CAIRNS - Undisclosed

Australian hospitality group TPG Hotels has acquired the freehold interest in the Pacific Hotel Cairns, with the final sale price reflecting an initial yield of 4.3% and a stabilised yield on a three-year basis of 7.25%. 

CBRE Hotels’ Wayne Bunz and Hayley Manvell negotiated the sale on behalf of the Perth-based Pacific Hotels Group following a discreet off-market expression of interest process.

The 4-star Pacific Hotel Cairns is positioned on a 3,570sqm CBD site. The 11-storey hotel offers 207 rooms and suites complemented by a range of guest facilities, including an award-winning restaurant, a guest lounge, a swimming pool, and ample car parking. 

The asset also includes four retail tenancies, which are currently occupied by two long-standing tenants, Destination Cairns Marketing and Flamingos Tiki Bar.