German fund manager DWS and Pro-Invest Group has inked a $48 million deal to buy the new The Sebel Canberra Civic hotel.
DWS purchased the 197 London Circuit property from Sydney-based developer Zapari Group. Zapari will lease level 10 as its new head office.
DWS is the asset management arm of Deutsche Bank. DWS Group's Asia Pacific assets make up five per cent of its €752 billion portfolio.
The Pro-Invest Group has a nearly $2 billion real estate portfolio including the Holiday Inn Express in Newcastle and a recently-rebranded 200-room property in Auckland.
Developed by the Nick Skepev-led Zapari Group, the Sebel opened in mid-2019 and featured 144 serviced apartment-style rooms over 11 floors as well as a restaurant, bar and teahouse on the ground floor.
The off-market deal was brokered by JLL Hotels & Hospitality Group.
JLL Hotels managing director Mark Durran said the property was well placed within the Civic Square precinct, surrounded by a mix of office buildings, government departments, restaurants and entertainment venues.
“Canberra is an investment hotspot at present. It offers attractive yields relative to other capital cities, with a positive long-term growth profile for the hotel market,” he said.
“Improved infrastructure such as the Canberra Airport and the new light rail project are also positive for the market”
Durran added the Canberra hotel market was on the upswing and had seen growth in both occupancy and average daily rates for hotel rooms.
According to the 2018-19 budget the territory was on track to reach their goal of $2.5 billion in overnight visitor expenditure per annum by 2020.