Iris Capital has purchased the The Ivanhoe Hotel on the Manly peninsula at the southern end of Sydney’s Northern Beaches for around $60 million.
The hotel located at 27 The Corso, was sold by the Peterson family, who had held it for 36 years.
Iris Capital, led by Sam Arnaout, has been steadily expanding its hospitality portfolio which also includes the Golden Tiger Hotel at Hurstville, The Bourbon at Potts Point and Steyne Hotel in Manly
Last year the group payed $45 million for the Narwee Hotel in southern Sydney and acquired a portfolio of 17 Ibis hotels from Accor Invest for $180 million, which had been placed back on the market following the collapse of Michael Gu’s iProsperity.
The Ivanhoe acquisition adds to the group’s local stable which includes its record setting acquisition of the nearby Hotel Steyne, which it bought for $65 million in 2019.
The group has been actively targeting A-grade hospitality properties at a time when interest rates are at record low levels.
“With an almost paranoid level of attention, we are constantly reviewing our capital application strategy, and we do so to ensure absolute flexibility in order to rapidly activate upon any criteria-match opportunities in the market,” Arnaout said.
“Given our existing and long hold investment strategy already within the area, The Ivanhoe Hotel property enjoyed the benefit of our attention and desire to contribute more broadly to the precinct.”
The off market transaction was handled by HTL Property’s Andrew Jolliffe and Dan Dragicevich.
“When we analyse the successful buyer profiles across the deals we have recently concluded, the commonality all these deals share is that experienced operators with determined capital deployment strategies are winning the race to these one in 50 year asset opportunities,” Jolliffe said.
“The fact that successful parties are doing so in an interest rate environment the lowest on record, and with the functional ability to move so incredibly quickly in order to get both to and across the deal table, is a theme not challenged by mutual exclusivity”
Last year HTL assisted Iris Capital in securing the the Narwee Hotel in Sydney’s St George area which had been similarly owned and operated by a private family for 33 years.
The Ivanhoe transaction tops HTL’s other hotel sales so far this year including the Byron region’s Lennox Hotel which was picked up by the Laundy family for $40 million and Sydney’s General Gordon, bought by JDA Hotels for $30 million.
It also caps off a busy few months for the pub sector with a series of sales by the listed Redcape Hotel Group and Hotel Property Investments, as well as, private players Moelis and pub tsar Justin Hemmes’ Merivale.