Latest Action Hotels News
Apr 5, 2019
Very large text size Kuwaiti-owned Action Hotels Group has listed the 3.5 star Ibis Glen Waverley for sale, the first major Melbourne hotel to hit the market this year. Action Hotels Group, listed on the London Stock Exchange and founded by Sheikh Mubarak, heir to the Kuwaiti throne, developed the suburban hotel in 2007, in conjunction with Accor. The offering comes as hotel builders and operators flock to the city. At least 10 new hotels are due to open in Melbourne this year. Even Sydney developer, “high-rise” Harry Triguboff, has finally entered the Melbourne market, buying one of Besgate’s sites at 140 King Street, through Colliers International, for a Meriton Suites tower. Advertisement CBRE Hotels agents Wayne Bunz - a former hotel chef - and Scott Callow are handling the expressions of interest campaign which closes in mid-May. The 155-room hotel is at 297 Springvale Road on the other side of the council offices from Century City and Vicinity’s The Glen shopping centre. It includes a cafe, restaurant, bar, conference and function facilities and a large business centre. Late last year, Mr Bunz sold the Ibis Brisbane to Worldwide Hotels for around $100 million. “On the back of that we had a number of parties approach us regarding this property,” he said. “We convinced Action to take it to market. This is an absolute workhorse of a hotel.” “People might say there’s a lot of hotel stock coming on the market in Melbourne but it’s the most resilient hotels market in the country, because of the year round events calendar,” he said. In late 2016, iProsperity paid $73.66 million for the larger Novotel hotel nearby and industry sources suggest the Ibis will fetch around $55 million. Trenerry deal Rich list stalwarts the Alter family has emerged as the buyer of a riverside office building at 64-78 Trenerry Crescent, Abbotsford. Title deeds show the Alter family’s Trenerry Investments paid $41 million for the 5296 sq m building last November. It’s small change from the $1 billion pocketed by the Alters last year after selling two half-stakes in the Pacific Epping and Werribee shopping centres. The suburban office, built in the late 1980s for Country Road, is on a large 5927 sq m site with 200 car parks. It’s a short walk from Victoria Park railway station off Johnston Street and close to the start of the Eastern Freeway. The vendor was the Holckner family, an offshoot of the Smorgon clan, which paid $22 million in 2007. Colliers International agent Peter Bremner, who did the deal last year, declined to comment. However, his colleague Rob Joyes has been appointed to reposition the building and look for new tenants. 64-78 Trenerry Crescent, Abbotsford “It’s a really nice campus environment and these sites have come back into vogue especially for employers who really care about wellness and well being of staff,” Mr Joyes said. The building looks out to Yarra Bend and Victoria parks, backs on to the riverside cycling and walking path and is close to the Abbotsford Convent and Collingwood Children's Farm. It was the second office on the Trenerry Crescent strip to sell this financial year. A branch of the Zagame family, advised by Fife Capital, paid $21 million for No. 112, a four-level 4252 sq m office off-loaded by the Australian Education Union in February. Even closer to the Eastern Freeway, that building is on a 4735 sq m site. The union has moved next door to No.126. Tantalising tenant The tenant in one of the Harrison cordial factory warehouses has snapped up its workplace before the sales campaign even finished. 12 Spring Street, Fitzroy. Computer games developer Tantalus Media is understood to have paid $3 million for 12 Spring Street, Fitzroy, a two-storey 446 sq m converted warehouse. CBRE agent Nathan Mufale said the deal reflected a yield of 3.69 per cent and a land rate of $11,673 a sq m. The three historic warehouses at 8-12 Spring Street were put to market last month by the Ramsay family. Just two remain. Port Veteran motor dealers Gary Brill and John Ayres have finally sold their Fishermans Bend development site at 150 Turner Street, Port Melbourne. The 2618 sq m site, which has a permit for a 36 storeys and 298 apartments, is understood to have fetched between $8 million and $9 million, well short of the $10 million-plus they were after a year ago. The price doesn’t represent too large a haircut. The property was acquired from the state government in 2003 for just $1.05 million. Dawkins Occhiuto brokered this deal after attempts to sell the permitted site fell though with other CBD agents. While agent Walter Occhiuto refused to confirm the price he was prepared to comment on the sales process. “We didn’t target developers, we pitched it at owner occupiers. We had several bids in the end. It was a competitive process,” Mr Occhiuto said. It’s the benchmark deal the market has been waiting for at Fishermans Bend, a redevelopment precinct mired in controversy since former Liberal planning minister Matthew Guy rubber stamped it a Capital City zone with no height controls in 2012. Few projects went ahead before the new Labor planning minister Richard Wynne froze the planning controls, leaving 26 projects in limbo. Last week, Spec Property resubmitted its plans for an apartment project with 39 storeys and offering 8 per cent as affordable housing. 150 Turner Street is in the Lorimer precinctof Fishermans Bend. With the Turner Street permit expiring in September and the apartment market in a deep trough, potential developers were thin on the ground. The deal comes shortly after Frances Fox, heir to Dr Thomas Beresford, listed 200 Dingle Street for sale. Why sell into a sagging market? Land tax bills are understood to be eating into the slim returns. Williams health Sydney-based healthcare fund Barwon Investment Partners has snapped up a not yet finished medical centre at Cedar Woods’ Williams Landing town centre. Barwon paid $8.2 million for the 1520 sq m centre at 111 Overton road which is due to be completed this month. The centre is fully leased to Cornerstone Health. CBRE agents Sandro Peluso, Josh Twelftree and Jimmy Tat struck the deal. Earlier in the week, the team sold developer Melinda Cohen’s South Melbourne child care centre to a private investor. The 97 Tope Street property fetched $10.25 million on a yield of 4.2 per cent. The 1700 sq m centre, leased to Guardian Early Learning, returns $434,700 a year. The site was one of the first city-fringe child care centres to come on the market in five years. Zoned Commercial 2, the site features 360-degree views and could be a future development site when the market rebounds. 97 Tope Street, South Melbourne.