Hotel Grand Central has sold the Hotel Grand Chancellor Surfers Paradise for $80 million to financial services group Challenger, acting on behalf of an offshore group, as the value of properties in the area surges.
The Singapore-listed group sold the 408-room hotel to Challenger with the price split between $77.41m for the land and $2.59m for the business.
Challenger owns the adjoining Paradise Centre on Cavill Avenue on behalf of the offshore investor and last year toyed with selling the $240m asset.
But by taking control of the entire site, it could reap substantial advantages by boosting the retail space as well as making better use of the hotel areas.
Challenger declined to comment yesterday but is understood to have fielded interest from at least six major operators to run the properties, with international hoteliers InterContinental, Accor and Starwood seeking to boost their exposure.
Hotel Grand Central picked up the hotel in 2010 for just $47m and poured $8.75m into renovations. The value of the property increased as Chinese and Southeast Asian groups chased prime hotel and apartment sites on the Gold Coast.
Marriott Vacation Club paid $36.5m in 2008 to receivers of the failed NZ financier Bridgecorp to buy the then Courtyard by Marriott hotel. It sold the property, which became the Hotel Grand Chancellor Surfers Paradise, two years later to Hotel Grand Central for $47m.
Challenger bought well at about $190,000 a room, which is seen as well below some comparable hotel sales. But the property’s value has also risen over the past eight years in keeping with the rise of Surfers Paradise.
The latest off-market deal was brokered by Dan and Sam McVay of McVay Real Estate, continuing the run of sales they have brokered along the so-called glitter strip.
McVay Real Estate also brokered the deal last year that saw Marriott Vacation Club return to Australia through the acquisition of the Surfers Paradise Marriott Resort and Spa on the Gold Coast for about $85m.
The agent also brokered the sales last year of the Hilton in Surfers Paradise and the Crowne Plaza as well as a low-profile deal on the Vibe Hotel Gold Coast.
Allan Vidor’s Toga Group and Greg Shand’s Barana sold that property for about $45m to Hong Kong giant Kerry Properties, which is yet to reveal its plans.
The pair picked up the then Concorde hotel and tavern from Singaporean tycoon Ong Beng Seng for $27.5m about a decade earlier, before selling into the booming market.
Brookfield Multiplex offloaded the 169 room Hilton Surfers Paradise Hotel and the management rights of another tower with 250 apartments to a Chinese-Australian family for about $52m.
Meanwhile, a Singapore-based family bought the Crowne Plaza and Gold Tower at Broadbeach from Singapore’s Cockpit Hotels for about $70m.
Originally Published On: http://www.theaustralian.com.au/
Hutchinson Builders takes over Cbus Brisbane tower that broke Probuild
Hutchinson Builders will take over the completion of Cbus Property’s troubled residential development in Brisbane, one of most problematic projects for failed construction contractor Probuild.
The awarding of the contract was widely expected, as family-owned Hutchies, the largest Queensland-based builder, was seen as the only contractor capable of taking on the 47-level project.
“Since commencing preliminary works on site three weeks ago, Cbus Property, together with Hutchinson Builders, continues to finalise subcontractor negotiations and prepare a revised construction programme,” Cbus Property chief executive Adrian Pozzo said on Monday.
“Once finalised, we will provide an update to purchasers with a more definitive completion timeline.”
Chairman Scott Hutchinson told The Australian Financial Review in early March he was “quietly hoping” to pick up the job and the announcement makes it second time lucky for the company that came second to Probuild in the 2017 race for the project.
But the project turned into such a drag for the business that Probuild parent WBHO said last year – long before putting the company into administration in February this year – that the project had racked up a $48 million loss.
Sydney-based Roberts Co has acquired Probuild’s Victorian projects and Built has taken over Dexus’ 25 Martin Place project in Sydney. The future of Greaton’s Ribbon project at Sydney’s Darling Harbour is still not clear.
Article source: www.afr.com
Tech Entrepreneur Disrupts With Shop-Top Development Proposal
The flames on the fryers at the Palm Beach Fish & Chips Shop, a roadside institution on Sydney’s northern beaches, flickered off months ago.
But tech rich-lister Robin Khuda is still feeling the heat.
The demolition crew has come and gone, levelling the site where locals along with movie stars, rock stars and sporting heroes had once placed their salt-sprinkled orders.
A development battle line—with a pristine view over Pittwater—has been drawn.
On one side is the wealthy founder of data centre operator AirTrunk who wants to build a shop-top residential development adjoining the landmark heritage-listed Barrenjoey House.
On the other side is a local community—much of it also cashed-up—fighting to protect the peninsula’s village vibe.
Khuda, who has been on a $120-million-plus property acquisition spree over the past couple of years, purchased the 1140sq m Barrenjoey Road site through his investment entity Asia Digital Investments for $6 million.
Since then, he has been seeking to amend the site’s existing development approval granted in 2014 for four apartments and three retail tenancies.
Last year, an application for modification of the development consent was lodged with the Northern Beaches Council for a three-level design with six apartments above retail.
But following community backlash and council feedback deeming it “unacceptable and inconsistent with the seaside village character” of the area it was withdrawn.
Design firm Rob Mills Architecture went back to the drawing board to address the concerns regarding the proposal’s architectural style, appearance and relationship to the adjoining heritage listed Barrenjoey House.
Subsequently, a new application for an alternative shop-top concept—to be constructed at an estimated cost of about $13.6 million—was recently filed.
It comprises a three-storey building with pitched rather than flat roof forms that according to the documents is “both sympathetic to its context and contemporary in its use of materials and forms in response to local climate and the seaside village character”.
The new scheme includes a publicly-accessible plaza and “deep and generously proportioned” colonnade providing weather-protected outdoor seating adjacent to the commercial tenancies on the ground level.
It is topped with five residences—one two-bedroom and two three-bedroom apartments on the first level, and two four-bedroom apartments on the second level.
The new application concedes the upper-level roof eaves exceed the site’s 8.5m height blanket by as much as 2.99m in some parts and a height variation request has been submitted.
“We consider that such request is well-founded in that it facilitates the development of the site in a manner which provides far superior urban design, heritage conservation, residential amenity and landscape outcomes compared to the development approved,” the planning report said.
A submitted heritage impact statement noted the proposed new building was “similar in height and scale to Barrenjoey House” and although contemporary in character it “demonstrates respect for the key forms, architectural proportions and materiality” of its 99-year-old neighbour.
It concluded the proposed works would have “no impact on the ability to understand the significance of the nearby heritage listed items” and would support “the ongoing significance of the area as a neighbourhood precinct”.
Numerous submissions objecting to the new scheme already have been lodged by the local community.
They describe the proposal as a monstrosity, imposing, grossly out of character and, according to the owner of a property behind the site, even higher than the previous proposal.
“It is a bulky building that not only flaunts height restrictions but is of an ugly, pretentious post-modern design; a complete anachronism,” one of the objections said. “With heavy neo-classical porticos and and a pitched federation roofline it is not at all sympathetic to the site and the lifestyle of the area.”
But one of the submissions begged to differ describing it as “a beautiful asset to the already beautiful Palm Beach area”.
“We can’t keep living in the past and not let these beautifully designed buildings be built,” it added.
Khuda—who has amassed a $600 million fortune as a data centre entrepreneur—in recent times has been satisfying a newfound penchant for high-end property investment and development.
His property splurge has included a total of three holdings in Palm Beach for $25 million as well as a coastal retreat in Lennox Head for $7 million, an apartment in Crown Resorts’ Barangaroo tower for $10.7 million and a Mosman mansion for close to $20 million.
The AirTrunk chief executive has also acquired two old apartment blocks at Manly’s North Steyne for $18.2 million, which are earmarked for another luxury apartment development.
Article Source: www.theurbandeveloper.com
Charter Hall raising $75m property fund
Charter Hall’s hit the fund-raising trail to raise $75 million for its second fund in the Wholesale Property Series (WPS).
The WPS is a fund-of-fund targeted at high-net-worth types that invest in a mixed bag of Charter Hall’s commercial property assets.
The firm raised its first iteration two years ago, bringing in $278 million and returning 19.1 per cent on an annualised basis since then.
It began mailing out detailed information memorandums for WPS2 (official name: Charter Hall Wholesale Property Series No.2) this month with an initial $75 million target.
But the fundraising period would run for two years, making it likely the end size would match its older siblings’.
The fund is closed-ended with a seven-year term, with realisations to start from the fourth year. That’s a long lock-in commitment and potential investors were reminded of the rewards of patience; the fund is targeting total returns of 8 to 9 per cent with quarterly distributions.
Office and industrials (including logistics) were top of the list for allocations at 20 to 50 per cent of the portfolio each, followed by smaller allocations to long-WALE (10 to 40 per cent), social infrastructure (up to 30 per cent) and listed REITs (up to 15 per cent).
Charter Hall’s divvying up the initial $75 million across five of its funds, where the WPS2 would be either the institutional pooled investor or an institutional partner depending on the fund structure.
That’s 210 properties with 98.6 per cent occupancy and Telstra, David Jones, Bunnings, Macquarie and Aldi among the largest tenants, potential investors were told.
Charter Hall’s grown from $500 million in 2004 to $79.5 billion in group fund under management at December end. The wholesale segment has been a big part of its growth and accounted for $38.5 billion of the $61.3 billion it has in property.
Article Source: www.afr.com
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