This article is from the Australian Property Journal archive
SINGAPOREAN real estate, retail and hospitality company UOL Group has snapped the Hilton Melbourne South Wharf hotel for $230 million.
The property was sold by US hospitality REIT Host Hotels & Resorts and Plenary Group. HHR owns a 75% stake in the hotel and Plenary owns 25%.
Located at 2 Convention Centre Place, South Wharf, the hotel is part of the Melbourne Convention and Exhibition Centre and South Wharf DFO retail centre.
The hotel is on a 99-year leasehold ending July 2108 with approximately 91 years remaining. The hotel comprises 396 rooms, of which 12 rooms are owned by unrelated room owners under sale-and-licence back arrangements.
UOL said the acquisition is part of the group’s plans to expand its hotel property portfolio and hotel management businesses in the Oceania region.
Upon completion at May 31, UOL will also rebrand the hotel from Hilton to Pan Pacific.
“The property will allow the group to have a bigger presence in the city of Melbourne in addition to its Parkroyal Melbourne Airport. Further to the above, the Acquisition may also allow the group the opportunity to enhance the collective operating efficiency of the group’s current hotels in Australia, through economies of scale and greater brand awareness of “Pan Pacific” and Parkroyal,” UOL said in a statement.
The deal is conditional upon approval from the Foreign Investment Review Board of Australia and as well obtaining the rights to acquire the leasehold interests in the rooms within the property from at least eight room owners.
Australian Property Journal
