Government buys motel for emergency accommodation

The Woolloongabba asset is 12 years old.

The Department of Housing has quietly snapped up an inner-city resort motel investment.

The PA Apartments complex at 40 Wolseley Street, Woolloongabba (pictured, top), is setting the state government back $14.3 million – a 7.3 per cent yield or price per key of $386,486.

Configured as studios or with one or two bedrooms, each dwelling contains a kitchen, bathroom, laundry and balcony.

Guest amenities include a pool and BBQ facilities.

There is also a manager’s residence.

On 1014 sqm abutting Carl Street Park, the site contains 23 car parks.

The property will provide emergency accommodation.

This pocket of Woolloongabba is about four kilometres from Brisbane’s CBD.

The acquisition comes 18 months since the state government bought two ex-nursing homes to repurpose as public housing: the former Freedom Bridge Street in Newtown, west of Toowoomba, and ex-Freedom Clayfield, in Brisbane’s north (story continues below).

The Pacific Cairns sold in June.

Emergency accommodation planned

Completed in 2012, the Woolloongabba complex can be configured with up to 37 dwellings excluding the manager’s residence.

The address is near the $6.3 billion Cross River Rail Station, under construction.

“The asset represented a highly profitable business opportunity as is, as well as offering the flexibility for other value-add prospects including for alternate use as a strata title and sell down for residential,” CBRE’s Hayley Manvell who brokered the off-market deal with Louisa Blennerhasset, said.

“Brisbane’s hotel market is set for ongoing growth amid a period of chronic undersupply with only 193 rooms under construction or to be delivered outside of the new Queens Wharf Casino,” she added.

“This extremely constrained supply pipeline, largely centered in the luxury segment, positions Brisbane’s existing hotels favourably as demand continues to grow,” according to the executive.

Earlier this year, a joint venture between brother publicans Bill and Mario Gravanis and Tamworth husband and wife, Craig Power and Tierzah Douglas, bought the Pacific Cairns hotel.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.