The Urban Developer
AdvertiseEventsWebinarsUrbanity
Industry Excellence
Urban Leader
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Urban Leader Awards Logos RGB White
NOMINATIONS CLOSE SEPTEMBER 12 RECOGNISING THE INDIVIDUALS BEHIND THE PROJECTS
NOMINATIONS CLOSING SEPTEMBER 12 URBAN LEADER AWARDS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
HotelStaff WriterMon 18 Sep 17

Byron Bay’s Beach Hotel Sells for $70 Million

db5b2da9007327137070a4834bc7d1e9

Melbourne-based Impact Investment Group is set to expand its portfolio with the $70 million acquisition of Byron Bay’s iconic Beach Hotel.

Known as the "Top Pub" to locals, the Beach Hotel is situated on a 4,585sq m site at the apex of the commercial precinct of Byron Bay.
The hotel was listed mid last year with price expectations of between $75m and $80m.


In an off-market deal CBRE Hotel’s Daniel Dragicevich and Wayne Bunz representing Impact Investment Group struck a deal with Max Twigg, owner of the iconic beach hotel who paid $44 million for the hotel in 2007.

“This is a strong price for an Australian pub and highlights the considerable ongoing interest in the country’s hotel investment market.” Bunz said.

Melbourne pub industry identity John van Haandel currently leases the beachfront property on a 10-year lease with a further 10-year option. Based on current rental income, the sales price represents a 6.3% passive investment return.

An IIG spokesperson said the group saw strong potential to regenerate the “heart and soul” of Byron Bay with a strategy focused on achieving bold green and social impact initiatives over a three to four year period.

“We’re looking forward to settling this transaction in six months’ time. It’s a great hotel, and we’ve already made a lot of progress planning our environmental upgrades and how we’ll work with the operator and locals to deliver real positive impacts for the Byron Bay community.”

Hotel capital markets have been dominated by Eastern seaboard transactions, with Sydney and Melbourne amongst the strongest performing markets. The scarcity of hotel product for sale, particularly in the CBD market, with a large influx of foreign and local capital search for opportunity continues to drive yields stronger within a highly competitive transaction environment.

New South Wales lead hotel sales volume in 2016 with around 40% of total hotel sales by value. Major hotel sales included Park Regis City Centre ($46m), the Vibe Hotel ($97m), Mercure Parramatta ($40m) and the Adina Apartment Hotel ($30.6m).

HotelAustraliaReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Woolloongabba Precinct Vulture St
Exclusive

Brisbane Developer in Cross River Rail Compensation Tussle

Clare Burnett
4 Min
The Mondrian Gold Coast hotel's food and beverage is driving profits
Exclusive

Touch, Taste, Theatre: What’s Driving Mondrian’s Success

Renee McKeown
6 Min
Fortis’ display suites are designed as brand environments first, with tactile details and curated design to build buyer confidence before project specifics.
Exclusive

Relevant or Redundant: Will Tech Kill Display Suites?

Vanessa Croll
7 Min
Exclusive

Missing Heart: Why The Gold Coast Needs a CBD

Phil Bartsch
7 Min
View All >
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
The property giant’s strategic shift to higher density is in full flight as details of two landmark projects are made pu…
LATEST
JQZ Parramatta EDM
Residential

JQZ Plots 10-Storey Addition to Parramatta ‘Auto Alley’ Plans

Clare Burnett
3 Min
South Melbourne social housing precinct
Affordable & Social Housing

South Melbourne Housing Precinct Revamp Takes Next Step

Leon Della Bosca
2 Min
Stockland bumps up its apartment pipeline in melbourne and sydney
Exclusive

Stockland Re-Enters Density in $5bn Apartment Play

Renee McKeown
4 Min
Aerial view of Caboolture and Bruce highway to Brisbane with Bribie Island Road crossing, Queensland, Australia
Policy

Queensland’s $2bn Push Opens New Housing Front

Vanessa Croll
2 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/byron-bays-beach-hotel-sells-70-million