Abode Hotel and Apartments in Woden. The sale campaign generated strong interest from a range of international and domestic investors. Photo: CBRE.
The Abode Hotel and Apartments in Woden has been sold to boutique funds management company Serene Capital for $41.5 million.
The hotel was sold with a long-term lease to Iconic Hotels under its Abode brand, a division of Geocon, Canberra’s largest residential builder-developer.
Sitting on a 1516 square metre site at 10 Bowes Street, the hotel offers 152 self-contained apartment-style rooms including one two-bedroom apartment as well as three conference rooms and an all-day dining, in-house restaurant.
CBRE’s Michael Simpson, Vasso Zographou and Tristan Cotchett negotiated the sale on behalf of Shakespeare Property Group following a competitive expressions of interest campaign.
Mr Zographou said the sale campaign generated strong interest from a range of international and domestic investors, who were attracted by the long-term lease agreement and high yearly rental increases.
“The Abode offered a lease return, which was attractive from a yield perspective,” he said.
“Underlying this is the strength of the Canberra hotel sector, corporate and Federal Government-related travel as well as significant domestic tourism.”
Shakespeare Property Group vice president – Hospitality Assets & Investments, Richard Saab said Abode Hotel and Apartments was the first hotel acquired by the group.
“With circa $2 billion of commercial and hotel properties, we considered it timely to sell the asset and redeploy the capital to other investment opportunities,” he said.
The acquisition is the latest for Sydney-based investment manager Serene Capital, which has more than $750 million in assets under management and advisory across the hotel and office sectors.
This includes the Adina Serviced Apartments in Dickson.
The purchase will boost Serene’s hotel portfolio to 10 properties.
Serene Capital CEO and co-founder Glen Boultwood said it had recently reopened the Serene Capital Hotel Fund 1 to new wholesale investors with a closing date for applications of 30 September 2023 after raising $20 million earlier in the year.
“We are now starting to see hotel yields and value back at levels when we started the fund back in 2014,” he said. “Having not invested over the past five years due to the lack of perceived value, our discipline is continuing to pay dividends to new and existing investors in the fund.”
Loading ...
