Deltine buys Tasmania’s only Sebel
Deltine Capital is buying Tasmania’s only Sebel.
The five-level, 49-suite hotel at the south-west corner of St John and William streets, Launceston, will be tipped into the fast-growing High Yield Motel Fund.
It previously traded just over 10 years ago for $9.855 million.
The freehold component reflected a 9 per cent return.
The leasehold demonstrated a 26 per cent return.
Resort Brokers was the marketing agency.
First Tassie investment, first Sebel
Completed in 2005, the Launceston building contains two conference rooms, a gym, lounge facilities and restaurant.
The suites are mostly configured with one and two bedrooms. There is a four bedroom penthouse.
Accor manages the Sebel brand.
The deal comes a week since realestatesource.com.au reported Brisbane-based Deltine, for the High Yield Motel Fund, bought three Swan Hill assets, two leaseholds and a freehold, outlaying $7m.
The asset manager has also this year bought Queensland properties, at Dalby and Ipswich – the latter for $19.5m (continues below).
In New South Wales it recently acquired the Observatory at Coffs Harbour and Roseville Apartments complex at West Tamworth.
Launceston is Tasmania’s second-biggest city with a greater population of c90,000.
Sebel Launceston
The Sebel Launceston is Deltine High Yield Motel Fund’s first Tasmanian acquisition, extending the fund into a fourth state.
It is also the fund’s first Accor-branded property.
“The 49-suite hotel is also the fund’s first property with access to Accor’s global reservation system and ALL loyalty program,” it said of the purchase
“Deltine forecasts an average 13 per cent annual income yield over five years, with a 20.1pc annualised total return (IRR) over the same period,” it added.
The hotel has a strong trading history, with revenue growth and profitability, and identified scope to further lift margins, according to the buyer.
Launceston’s demand is supported by health, education, government infrastructure, events and tourism, Deltine said.
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