Purchase completed on behalf of LaSalle Asia Opportunity Fund III
LaSalle Investment Management (“LaSalle”) today announced it has entered into an agreement with Thakral Holdings Group to purchase the 380-room Novotel Melbourne on Collins Hotel and adjoining 7,797 square metre Australia on Collins Shopping Centre on behalf of LaSalle Asia Opportunity Fund III for A$204 million.
Andrew Heithersay, International Director at LaSalle Investment Management, commented: “We have been targeting a Melbourne hotel acquisition for two years and are delighted to have secured such a prized and well established property”.
“The prime Collins Street location is the key attraction for hotel guests and retail customers alike and we intend to enhance their experience by investing additional capital to refresh and reposition the entire property, which we are confident will also unlock additional value.”
“A major factor in our investment decision was the limited supply outlook, coupled with Melbourne’s growing and diverse accommodation demand drivers, which are underpinned by its solid corporate base and world-class sporting, cultural and convention events calendar”.
Accor will continue to manage the hotel under their Novotel brand, with a new hotel management deal struck with LaSalle. Accor has long standing relationship with LaSalle and also manage their Novotel Nathan Road Kowloon in Hong Kong, Sofitel Silom Bangkok and Sofitel Wentworth Sydney. They also successfully co-developed the 538-room Ibis Bencoolen Singapore, which was sold last year for SGD$210 million.
The acquisition complements LaSalle’s purchase of Sofitel Wentworth Sydney for $130 million last year also acquired on behalf of the LaSalle Asia Opportunity Fund III. Mr. Heithersay added, “LaSalle continues to build its presence in Australia and we have in excess of US$ 1 billion of dry powder to pursue investments, with a focus on value-add or development opportunities.”
The purchase price of $204 million reflects a combined reversionary yield of 8.2% according to LaSalle.
Craig Collins, CEO of Jones Lang LaSalle Hotels, represented Thakral in the transaction.
