iProsperity wins Singapore backing for hotel portfolio

The group was first tipped as the likely buyer by The Australian last November and the deal was all but closed last month. It has just been finalised for an overall price of about $200 million.

The AccorInvest portfolio comprises 17 hotel properties, acquired for $212.6 million, also includes six leasehold interests that will be transferred in future.

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The deal is one of the country’s largest transactions in terms of the number of hotels sold and also comprises one the largest hotel deals with 3046 rooms across Accor brands comprising MGallery, Novotel, Mercure, ibis and Ibis Budget.

The hotels are in Brisbane, Sydney, Melbourne, Canberra, Perth and regional NSW. Once the deal is completed iProsperity and ZACD plan to make further acquisitions to gain an even more significant foothold in the hospitality market.

The transaction was brokered by Craig Collins and Peter Harper of JLL Hotels & Hospitality Group.

The deal was iProsperity’s first drawing on its part-owned hotel investment advisory business, Hotel Capital Partners, run by Stephen Burt.

The ibis Melbourne has been sold as part of the AccorInvest portfolio.

It also locks in iProsperity’s status as Australia’s most active hotel investor.

In recent weeks it has announced a number of hotel transactions, including the sale of Novotel Glen Waverley and adjoining shopping centre. The group also bought Melbourne’s Pullman on the Park hotel from Brookfield last year.

ZACD is an integrated asset manager listed in Hong Kong and headquartered in Singapore, and the investment is one of its first local moves.

ZACD has a track record of investments in numerous residential and industrial development projects in Southeast Asia.

The group recently embarked on its regional expansion with the establishment of a pan-Asia-focused income fund investing in quality real estate.

Through this fund, it recently entered the Australia property market, acquiring an office building in Melbourne and a Perth unit and serviced apartment project.

Co-Founder and chief executive Stanley Yeo says the group is partnering with iProsperity on the “geographically diverse” hotel portfolio. “We both hold a strong conviction as to the positive outlook for the Australian hospitality market and we see this portfolio as an excellent vehicle to build a meaningful presence in the Australian hotel market,” he says.

IProsperity chief executive Michael Gu is similarly upbeat about the Australian hotel market and the joint venture’s strategy for the portfolio. “We are keen to build scale in the Australian hotel market and the AccorInvest portfolio delivers both scale plus strong brand and geographical diversity,” he says.