Receiver lists near new Melbourne hotel
One of failed developer APH Holding’s highest profile investments has been listed for sale by receiver and manager, KordaMentha.
The five level, 69-suite hotel, Clarion Apartments, at 51-59 Palmerston Crescent, at the south west corner of Kings Way, was also offered mid-last year – before the builder collapsed.
Then, the annual rent was $1.46m.
Today it is $1.64m
Tenant, US-base Choice Hotels, is committed until 2034.
The lease agreement includes fixed four per cent rent rises.
Given the land zoning – Commercial 1 – any incoming owner can consider repurposing after that, including with a traditional residential product or build to rent, according to marketing agents, Cushman & Wakefield’s Daniel Wolman, Leon Ma and Oliver Hay, with HTL Property’s Scott Callow, Andrew Jackson and Andrew Jolliffe.
Alternatively the building can be replaced as an office.
Clarion Apartments
APH also controlled a 620 square metre block next door to the Clarion – 61-65 Palmerston Cr – where it planned 13 luxury apartments over nine levels.
The hotel, on 789 sqm, was completed two years ago.
The bulk of the units (57) are studios. The balance (12) have a bedroom.
The complex also includes a gym, conference centre and 27 car parks.
A ground floor retail tenancy spreads 125 sqm.
“Alternative investment like hotel assets are drawing heightened interest from both domestic and offshore capital,” Mr Wolman said.
“In a market where traditional sectors are tightly held, properties that offer income, flexibility and strategic location are proving to be highly attractive,” according to the executive.
“Investors are increasingly looking beyond the conventional to secure long term value,” he added.
APH collapsed late last year after failing to sell some $200m of its portfolio including the Clarion, which was listed with a different agency.
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