LaSalle Investment Management, on behalf of LaSalle Asia Opportunity Fund III, has inked an agreement with Thakral Holdings Group to acquire the 380-room Novotel Melbourne on Collins Hotel and the adjacent 7,797 sq m Australia on Collins Shopping Centre for A$204 million.
“We have been targeting a Melbourne hotel acquisition for two years and are delighted to have secured such a prized and well established property,” said Andrew Heithersay, International Director at LaSalle Investment Management.
“The prime Collins Street location is the key attraction for hotel guests (and alike) and we intend to enhance their experience by investing (in) additional capital to refresh and reposition the entire property, which we are confident will also unlock additional value.”
“A major factor in our investment decision was the limited supply outlook, coupled with Melbourne’s growing and diverse accommodation demand drivers, which are underpinned by its solid corporate base and world-class sporting, cultural and convention events calendar.”
With a new hotel management agreement between LaSalle and Accor, which has a long-standing relationship with LaSalle, will still manage the hotel under their Novotel brand. Accor also manages LaSalle’s Sofitel Silom Bangkok, Novotel Nathan Road Kowloon in Hong Kong and Sofitel Wentworth Sydney and has successfully co-developed the Ibis Bencoolen Singapore, which was sold for S$210 million in 2010.
The purchase matches LaSalle’s acquisition (on behalf of the LaSalle Asia Opportunity Fund III) of Sofitel Wentworth Sydney for A$130 million last year.
“LaSalle continues to build its presence in Australia and we have in excess of US$1 billion of dry powder to pursue investments, with a focus on value-add or development opportunities,” added Mr. Heithersay.
According to LaSalle, the purchase price of A$204 million translates to a combined reversionary yield of 8.2 percent.
To contact the journalist, you may send your message to editor@propertyguru.com.sg