Pro-Invest Group has picked up a five star Sydney hotel after a $140 million deal to Qatar Airlines fell through.
The Sydney investor is paying $132 million for the Primus Hotel at 339-341 Pitt Street.
Greenland was the vendor; the five year old facility forms part of the mixed use Greenland Centre Sydney, which is nearing completion and will contain the city’s tallest apartment tower.
JLL Hotel & Hospitality’s Mark Durran was the agent.
The deal is due to settle in August.
Pro-Invest chairman Ronald Barrott said the acquisition is the company’s first Sydney CBD guesthouse.
It is also the group’s first luxury one.
One of its four funds aims to expand Australia’s Holiday Inn portfolio by about 50 (story continues below).
Pro-Invest recently appointed Jans Smits to the co-chief executive role; that businessman oversaw IHG’s expansion into Asia and the Middle East.
“Despite the industry’s current challenging operating environment, there is no shortage of local and offshore capital seeking to invest in high quality major hotel opportunities,” Mr Durran said.
“The strong interest fielded in this exceptional hotel asset reflects a huge vote of investor confidence in the Sydney hotel market’s long-term fundamentals, as well as Australia’s enduring appeal as a visitor destination and its status as an investment safe haven”.
The Woods Bagot designed hotel incorporates an Art Deco building with distinctive scagliola columns.
Mr Durran said plans have been approved to enclose the rooftop area to create a year-round venue.
“Added to this, the hotel’s inventory of large guest rooms and suites, plus its expansive lobby and food and beverage facilities, offer an exceptional opportunity to rebrand and reposition it towards an upscale lifestyle hospitality offering,” according to the agent.