This article is from the Australian Property Journal archive
AUSTRALIA'S third largest listed property trust GPT Group has sold its prized Four Points by Sheraton hotel in Sydney CBD for a discount price of $185 million.
The hotel was sold to an offshore investor and the price represents a 10% discount to GPT’s June 2009 valuation and a passing yield of 8.8%.
The price is a 21% less than what GPT had expected, when the property was put on the market in July last year. The hotel was valued at $232.8 million in December 2008.
However the price is above the initial offer received which was around $170 million.
GPT purchased the property, Hotel Nikko, in March 2000 for $136.2 million.
CEO Michael Cameron said Four Points by Sheraton is a solid asset in the Sydney hotel market.
“It has performed well for GPT and the sale represents a good result in the current investment market,” he added.
Cameron said the sale of the hotel/tourism assets allows the company to focus on its core portfolios in the Australian retail, office and industrial/business park sectors.
GPT is moving along with the sale of the remaining hotel and tourism assets including Brampton Island Resort and Ayers Rock Resort.
Four Points by Sheraton features 639 rooms including 576 standard rooms and 53 suites.
The transaction is expected to complete before year end.
Cameron said proceeds will be applied to the group’s borrowings, following settlement GPT’s gearing ratio is expected to be approximately 22%.
Australian Property Journal
