This article is from the Australian Property Journal archive
VALAD Property Group has started an international marketing campaign to sell the Sheraton Noosa resort in Queensland, after wrestling control of the hotel from joint venture partner, Ashington.
The sale of the Sheraton Noosa Spa and Resort represents a short stay for Valad, which bought the hotel in October 2007 from Suncorp for $94 million. Suncorp had owned the property since 1989 when it was developed for $35 million.
Valad had previously looked at a number of options including plans for a refurbishment of the existing property to full redevelopment including potentially branded residences.
Acting CEO Clem Salwin said this decision is in line with Valad’s strategy to restore value to securityholders.
“Sheraton Noosa is a landmark in the heart of Noosa, one of Australia’s leading domestic holiday destinations. However, after reviewing the property, we have concluded that it is non-core to Valad, with the capital better employed elsewhere in the business,” he added.
The Sheraton Noosa is the only international five star resort in Noosa, offering 176 rooms as well as a host of typical hotel facilities.
Furthermore, the property also includes seven retail outlets and a private mooring facility on the Noosa River.
Valad’s head of real estate Mark Frinsdorf said the property occupies a significant 9,946 sqm freehold site which offers numerous value-add and redevelopment options.
“The Sheraton Noosa has consistently achieved strong performance over the past several years, yet still offers substantial future income growth potential,” he added.
The resort is currently operated by Starwood Hotels & Resorts under a hotel management agreement which expires in 2015.
Jones Lang La Salle will market the Sheraton Noosa via an international marketing campaign.
Australian Property Journal