Singapore trust pays $60m for Sydney Airport’s Felix Hotel
A Singapore real estate investment trust has forked out $60.6 million buying the Felix by 8Hotels near Sydney Airport, with plans to rebrand the 150-room property as the Citadines Connect Sydney Airport.
The Ascott Residence Trust plans to undertake the conversion in May with the acquisition of the REIT’s first Australian business-style hotel. The deal was negotiated by Andrew Langsford, of JLL Hotels, on behalf of its owner, a local private developer.
The Ascott trust’s local portfolio runs to six hotels, including the Quest Mascot, Quest Campbelltown and Quest Sydney Olympic Park.
Commercial Insights: Subscribe to receive the latest news and updates
“This acquisition will deepen Ascott REIT’s presence in the stable and resilient market of Australia, adding to our portfolio a quality property that provides good yield in the highly sought-after Sydney market,” Ascott chairman Bob Tan says.
“Australia has consistently ranked as one of Ascott REIT’s top contributing markets in terms of gross profit,” he said.
Tan says the acquisition of the 113-121 Baxter Rd, Mascot, property, which is adjacent to the Quest Mascot, will be partially funded by divestment proceeds from the sale of Ascott Raffles Place in Singapore.
Meanwhile, a syndicate of high-net-worth Melbourne businessmen is asking more than $25 million for more than half of the apartments in the Silverwater Resort overlooking Phillip Island, which is being marketed by CBRE.
“There’s a lot of attention back in Australia on high-end leisure product as highlighted by KSL’s investment in the James Baillie resorts,” CBRE’s Wayne Bunz says.
The asking rights for the 88 apartments were below replacement cost, he said.
Just over an hour from Melbourne on the San Remo coastline, the 8.5ha property has panoramic views across to Phillip Island. It comprises one-, two- and three-bedroom, self-contained apartments and six conference facilities for up to 500 delegates.
“Silverwater Resort will appeal to purchasers seeking an alternative, higher yielding investment opportunity in a non-CBD location, which appeals to both the leisure and corporate market,” Bunz says.