Punthill Apartment Hotels to divest freehold interest in major asset
In a move to capitalise on strong market conditions and recycle capital into further expansion opportunities, Punthill Apartment Hotels will offer for sale Punthill Brisbane on a sale and leaseback basis.
JLL Hotels & Hospitality Group’s senior vice presidents, Peter Harper and Paul Fraser, will exclusively market for sale the property, at 40 Astor Terrace Spring Hill, by way of a public expressions of interest campaign.
The mixed-use property was extensively renovated and refurbished in 2012 and features an apartment hotel, restaurant & bar tenancy, over 200sqm of commercial office space, and a carpark. It also occupies a 1,801sqm freehold site.
The hotel component comprises 71 keys, spread over 70 studios and 1 two bedroom manager’s apartment, together with conference facilities, a swimming pool, gymnasium and associated guest amenities.
Punthill Apartment Hotels is one of Australia’s serviced apartment hotel operators. Founded in 1987 by Robin and Arno Caras, the group currently operates 13 properties in leisure and commercial locations across Australia, and remains 100% owned and operated by the Caras family.
“Capital from the sale of 40 Astor Terrace will fuel Punthill’s large-scale expansion plans. 287 keys are already slated to be added in 2016 and 2017 across three new Melbourne hotels in the CBD, inner north and eastern commercial precincts. The group is also scouting sites in the Brisbane and Sydney CBDs and outer commercial catchment areas, with a vision to build a national apartment hotel network over the next decade,” said Alan Caras, director, Punthill Apartment Hotels.
Mr Caras added, “The newest addition to the portfolio will be the 132 apartment 560 Flinders Street in Melbourne. The hotel is scheduled to open in July 2016. Designed by Elenberg Frasier and developed by the Excelon Group, the property will continue the evolution of Punthill’s 4.5 star boutique brand. It will include a top floor events space with stunning cityscape views, and a modern restaurant and bar integrated with the ground floor lobby.”
Selling agent for Punthill Brisbane, Peter Harper, said “The mixed-use property is fully leased on a triple net basis, and offers income security via strong lease covenants, attractive annual and market reviews, and a weighted average lease expiry of 9.7 years. This is significant for a passive investment opportunity in Brisbane across all asset classes.”
Paul Fraser added, “We expect this offering will tick all the boxes for investors in the market place through excellent property fundamentals, a strong and stable earnings profile, and a city undergoing considerable growth and transformation with over $5 billion of infrastructure and development projects currently underway.”
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