CBD hotel sold for $445.3 million

Sydney CBD hotelA third luxury Sydney CBD hotel has been sold in four weeks. Following the sales of the Sofitel Wentworth at $224 million and the Sydney Hilton at $442 million is the sale of the Sydney Westin Hotel at $445.3 million. The vendor, GIC Pte Ltd, is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore’s foreign reserves for the well-being of current and future generations of Singaporeans. The sale was arranged by Peter Harper and Craig Collins of JLL and Stephen Burt and Gus Moore of Colliers International.

Purchaser was a partnership of the Singaporean Far East Organisation and Hong Kong based Sino Group. The Far East Organisation was established in 1960. Effectively owned by brothers Robert and Phillip Ng, it is the largest private property developer in Singapore. The Sino Group, one of the leading property developers in Hong Kong, is a public company also associated with the Ng family.

According to Sydney Cityscope, the Westin is a 32 level, 416 room, 5-star hotel. The hotel features a 32 metre high mural by Australian artist Frank Hodgkinson in the foyer area, one of the largest in Australia. Set partly in the heritage-listed 1844 GPO building, it also includes the Grand Ballroom, a pillar-free function room catering for 1,000 people, a 1,000 sqm courtyard, 49 heritage rooms and several luxury designers’ retail outlets.

The property last traded at $160 million in 2002. This sale, at $445.3 million, apparently reflects a yield of approximately 4.5%. The sale price equates to a record price of $1.2 million per room, which reflects the strong demand for Sydney’s hotel market.

 

Meredith Baume
Commercial Research


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About Commercial Research

CoreLogic RP Data Commercial Cityscope is a web-based service. Access is sold by geographic regions (Cityscope areas). There are 25 geographic regions across Australia (three in New Zealand), clustered around the cities of Sydney, Melbourne, Brisbane, Adelaide, Perth, Canberra and Newcastle. Darwin and Hobart CBD centres aren’t covered. Cityscope Areas in NSW and QLD also include lease expiry data for the most complete commercial coverage available. For more information call 1300 734 318.

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