02/11/2018 - 11:06

BGC offloads Aloft hotel

02/11/2018 - 11:06

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BGC Australia has agreed to sell the Aloft Perth hotel and associated office development in Rivervale to Singapore-based Hiap Hoe Ltd for $100 million, but is still chasing a buyer for a second, larger hotel it developed, The Westin Perth.

BGC offloads Aloft hotel
BGC Australia has agreed to sell Aloft hotel and adjacent office building for $100 million

BGC Australia has agreed to sell the Aloft Perth hotel and associated office development in Rivervale to Singapore-based Hiap Hoe Ltd for $100 million, but is still chasing a buyer for a second, larger hotel it developed, The Westin Perth.

The Aloft transaction, negotiated by JLL, is expected to complete in the first quarter next year pending FIRB, liquor licensing and board approvals.

JLL Hotels & Hospitality Group managing director Mark Durran said the hotel and office asset attracted interest from domestic and Asian buyers.

“The mixed-use income streams had strong appeal to both private and institutional investors,” he said.

BGC put the Aloft and Westin hotels on the market in June this year ahead of launching a sales process for the entire BGC group to resolve issues surrounding the family ownership.

It had previously been reported that Malaysia’s YTL Hospitality REIT, which owns the Sydney Harbour, Brisbane and Melbourne Marriott hotels, was the potential purchaser of The Westin Perth for around $200 million.

BGC said in a statement that the sales process for the Westin was progressing well, but did not give any further details other than to note the amount of inquiry.

“The current constrained supply of quality, contemporary hotel properties in Perth’s rising market continues and has seen strong interest for the Westin Hotel,” BGC director Sam Buckeridge said.

The Aloft is operated by Marriott hotel group, which will continue to run the hotel under the new ownership.

The office component of the sale, 25 Rowe, offers 10,569 square metres of office space. The building is 81 per cent leased with a weighted average lease expiry of 7.6 years.

Hiap Hoe, which is listed on the Singapore Exchange, owns the Four Points by Sheraton in Melbourne’s Docklands as well as an office building at 130 Stirling Street in Perth.

It owns the Days and Ramed hotels in Singapore and the Holiday Inn Express in Manchester, England.

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