A wealthy Singaporean property group has made their first move on Australian soil with the purchase of the Holiday Inn City Centre Perth.
Under the subsidiary Legend Land Perth Pty Ltd, the private group paid a suspected $65 million for the hotel, which is currently operated by the Intercontinental Hotel Group (IHG) on a long-term basis.
The vendors were long-time friends and business partners Constantine Berbatis and George Atzemis. Berbatis and Atzemis bought the hotel in 2009 for $44 million from Eureka Funds Management.
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The Holiday Inn City Centre Perth is located at 788 Hay Street and features 186 rooms over seven upper levels, ground floor reception, bar and brasserie, eight convention rooms, a 24-hour business centre and gymnasium.
In recent years, the hotel has undergone a full refurbishment which included the addition of the popular Ivy & Jack restaurant fronting Hay Street.
CBRE Hotels’ Rob Cross said the sale highlighted an upturn in investment activity in the Perth hotels market.
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“Whilst Perth will continue to see additional supply in the foreseeable future, notably the Ritz Carlton and Westin hotels, the past 12 months has seen improvement in the commercial vacancy rate,” he said.
“Combined with signs of recovery in the mining sector and strong tourism numbers, Perth is looking more compelling from an investment perspective in the medium to longer term.”