Chinese-backed property investors WR Sydney are selling out of the Edition Residences development at 9-25 Commonwealth Street in the sought-after Hyde Park precinct in Sydney’s CBD.
The sale is being offered on a turnkey basis with takeout on completion — price expectations are north of the $90 million mark.
The 783sq m site was formerly owned by the NSW State Property Authority, who sold it to a private Chinese investor in 2014 for $45 million. WR Sydney picked it up for $70.5 million in 2017.
The hard-won approval, for a 124-key hotel and 52-apartments is now being offered for sale by the developer. JLL and Knight Frank are brokering the sale.
Other “off-the-plan” hotel sales in Sydney include the Pullman airport hotel, which sold last year for $84 million, and the Marriott’s W Ribbon which was structured as a fund-through arrangement with the Greaton Group.
The Sydney city hotel sector is set to receive an uptick in supply, with 23 hotels under construction or approved and more than 1000 rooms added over the past year.
In 2018, The city of Sydney’s average daily rate reached $263, the highest revenue per available room (RevPAR) in the country.
According to Tourism Accommodation Australia figures released in February, Sydney has 6,084 rooms in the pipeline. Its under-serviced high-end hotel market is also set to boom with the W Ribbon, Ritz-Carlton at the Star and Crown Resort at Barangaroo all under way.
JLL vice president of hotels and hospitality Andrew Langsford said that there is flexibility over the eventual market-positioning, brand and operating structure for incoming purchasers.
“The hotel presents an opportunity to acquire an exceptional brand-new property in Australia’s most covered and tightly-held hotel investment market,” Langsford said.
Expressions of interest for 9-25 Commonwealth Street will close 23 May.