- High Street Holdings acquired the office on behalf of the Singaporean family office
- Has plans to acquire similar assets across Australia
- A refurbishment of the hotel will take place post-settlement
A Singaporean investment and asset management company has acquired the Rydges North Sydney hotel for $75,000,000.
High Street Holdings, on behalf of a Singapore family office, purchased the 167-key hotel as it flags plans to acquire further hotels across Australia. The deal was negotiated by CBRE Hotels on behalf of Event Hospitality & Entertainment.
The Singapore family office last year made its first Australian tourism acquisition with the purchase of Brisbane’s Kennigo Hotel. High Street Holdings partner David Marriott noted the family is actively pursuing Australian investment opportunities as part of its global diversification.
”The transparency of the Australian market and the strength of domestic demand, which accounts for circa 80% of hotel visitation numbers, continues to be a key attraction in light of the volatility in international tourism in recent years,” Mr Marriott said.
North Sydney revitalisation
The hotel is located at 54 McLaren Street and occupies a 2,549 sqm freehold site in the North Sydney corporate catchment. Post-settlement, a refurbishment of the hotel will take place.
Located just off Miller Street, the hotel is located next to the Victoria Cross Metro Station, which will connect North Sydney and the Sydney CBD together in around three minutes upon completion.
“Sydney is a truly global city, renowned as a global tier one investment destination with hotel assets highly sought after but tightly held,” said Wayne Bunz, CBRE Hotels’ National Director.
“This sale highlights the recent rebound in demand from Asian-based capital reinvesting into Australian hospitality and accommodation assets.”
Michael Simpson, CBRE Hotels’ Managing Director, added there is around $8.4 billion of large-sclae development projects that are either under construction or in the planning phase across the North Sydney precinct, such as the 60,000 sqm Victoria Cross office project that adjoins the hotel.
Combined with the 61,000sqm 1 Denison Street and 42,000sqm 100 Mount Street office towers, this significant influx of commercial projects and limited hotel supply bodes well for the local accommodation market,” said Mr Simpson.
