Elanor suffers hit on 5-star hotel sale
Elanor Investors Group has shed another asset from its Hotel Accommodation Fund, which failed to sell as a portfolio last year.
The c1934 Neo Romanesque Mayfair Hotel, built nine years ago into the Colonial Mutual Life building at 45 King William Street, on the south west corner of Hindley, in Adelaide’s CBD, is trading for $75 million to Ark Capital and Regal Partners, which also formed a business partnership for similar product.
The result is against a $90m guide when the vacant property hit the market in February.
The last publicly available valuation, dated early last year, priced the 13 level, guesthouse at $91.5m.
Elanor sells maiden SA hotel
Elanor acquired the Mayfair and Adabco Boutique Hotel in 2019 for EHAF which launched two years later.
The outlay was c$100m.
The hotels – and two more bought at the same time – were the asset manager’s first in South Australia.
The Mayfair contains 170 rooms, 15 suites – all rated 5-star – the Hennessy rooftop bar and Mayflower restaurant.
It is also designed with event, meeting and public spaces.
JLL’s Peter Harper, Adam Bury, Gus Moores and Ben Parkinson were the agents.
Ark and ASX-listed Regal intend to build a portfolio of local assets to reposition.
Change of plan
The Mayfair was listed after a deal last year fell through to sell EHAF’s portfolio of 17 assets to a consortium of Blackstone, KKR and KSL.
Another asset offloaded by the fund this year was the Mantra Pavilion – Wagga Wagga.
Last December meanwhile, EHAF sold the Ibis Styles Port Macquarie to the NRL.
Elanor has also been shedding retail assets, including this week, from its Property Income Fund, Gladstone Square, in Central Queensland.
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