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Pleasing early interest for high-quality assets
Sydney, 29 September 2010 – Australia’s largest ASX-listed owner of hotels, Thakral Holdings Group, has appointed global real estate service firm Jones Lang LaSalle and boutique agency McVay Real Estate to manage the sale of the popular and much-visited Oasis Shopping Centre and 5-star Sofitel Gold Coast Broadbeach hotel.
The high-quality multi-purpose asset is based in the heart of cosmopolitan Broadbeach, one of Queensland’s favourite holiday and business destinations, which offers a unique village-like atmosphere and vibrant sophisticated lifestyle. Both properties were purchased in 1994.
Craig Collins, Jones Lang LaSalle Hotels’ Managing Director, said: “It has been some time since an offering like this has been put to the market, particularly with such diverse income streams, value and trading upside potential, and excellent underlying fundamentals.
“There have been regular inquiries to purchase the properties individually or together before they went on the market. Being offered for sale in-one-line or as individual components, we believe this offering will generate strong interest from both domestic and offshore investors. As a whole, given the opportunity this property offers, it would make an ideal foundation asset for a new fund, be an excellent addition to an existing portfolio, or would suit private companies, developers and high net worth individuals.”
Demonstrating this strong demand is the fact that over the past 18 months there has been in excess of $200 million of accommodation hotels to transact on the Gold Coast. These sales include the Marriott Resort Surfers Paradise, Courtyard by Marriott Gold Coast and Sheraton Mirage Gold Coast, which were all acquired by Asian based investors.
Since 2004/5, over $17 million has been spent on refurbishing the rooms, public areas and restaurants within the Sofitel. In the same period, a further $19 million was expended on renovating the Oasis Shopping Centre.
Oasis Shopping Centre, Broadbeach
The Oasis Shopping Centre, which receives more than 6.5 million shopper visits a year, comprises 21,542sqm over three floors. Retail shopping is provided over the first two levels, while the top floor comprises services and office space.
Along with anchor tenants Woolworths and the Broadbeach Tavern (also Woolworths owned), the centre is home to more than 120 specialist retailers, offices and kiosks, and there is car parking for 1,249 cars.
The centre generates over $100 million in retail sales and has a total occupancy rate of 97.7%.
Jones Lang LaSalle’s Australian Head of Retail Investments, Simon Rooney, said: “On the back of a number of major transactions over the past six months, investment in the retail sector continues to attract high levels of domestic and off-shore enquiry. We expect strong interest in this high quality opportunity”.
McVay Real Estate Chairman Dan McVay said: “There is considerable potential to remix some of the Oasis’ tenancies and add a food court on the ground floor.
“Prospective owners can expect to enjoy increased visitor numbers, as Broadbeach continues to grow. Visitor traffic will also benefit from the completion next month of The Oracle with its 500 apartments, and the new Gold Coast Rapid Transit Project (light rail) in 2014,” he said.
Sofitel Gold Coast Broadbeach
The Sofitel Gold Coast Broadbeach hotel is a 23-level luxury hotel comprising 296 guest rooms and suites, all with stunning views of the Pacific Ocean (75%) or the Gold Coast hinterland (25%). It is conveniently located close to Jupiter’s Casino and the Gold Coast Convention & Exhibition Centre and is in easy walking distance to the beach, as well as numerous restaurants, cafes and bars.
The hotel also contains a business centre, gymnasium, two swimming pools, spa, tennis court and three food and beverage outlets: Room 81, an award-winning à la carte restaurant; the new look Bistro On3, located on level three of the hotel, overlooking the outdoor terrace pool and known for its focus on local produce; and the TC’s Bar and Gaming Lounge, with a full-service bar, great-value dining menu and, for gaming enthusiasts, 35 poker machines.
The hotel offers luxury boutique conference facilities for 10 to 350 people, with Level 23 providing up-market private meeting spaces and executive boardroom facilities. There is basement parking for 114 cars.
While there is an attractive agreement in place with French global hotel chain Accor to manage the hotel, Thakral is also offering a sale with vacant possession.
During the financial year ended 30 June 2010, the hotel achieved an average occupancy rates of 65% with an average room rate of $189.70.
Adding to the property’s attraction, there is an existing approval to construct 75 additional residential suites on the roof of the Oasis, accessed and serviced by the hotel. Alternatively, there is scope to build further conference facilities, a restaurant and meeting rooms to boost revenue.
Proceeds from the sale of the Sofitel Gold Coast and Oasis will be used to strengthen Thakral’s balance sheet, paying down debt, and position the group for further growth.
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