JLL Hotels & Hospitality has announced the Tattersalls Hotel and Commercial Centre in Penrith's CBD has been sold for circa $28 million to BMG Developments through JLL Vice President Kate MacDonald and National Director John Musca.
BMG Developments has added Penrith's Tattersalls Hotel and Commercial Centre to its portfolio, purchasing the asset off-market from Washington H Soul Pattinson for circa $28 million.
The sale includes the freehold going-concern interest in a large hotel including 15 gaming machines and a 6400m2 commercial building with a mix of retail and commercial tenancies and 100 car spaces.
The asset was sold by PSRE Penrith Pty Ltd a fund managed by Pitt Capital Partners on behalf of Washington H Soul Pattinson (ASX: SOL) and 360 Capital REIT (ASX: TOT) and was purchased by local developers and hoteliers BMG Developments.
At a glance:
JLL Vice President Kate MacDonald and National Director John Musca negotiated the off-market sale, with Ms McDonald describing the transaction as an "excellent result" for the institutional owners and their stakeholders.
"The hands-on buyers have a positive view on the long-term CBD redevelopment outlook for Penrith, whose CBD is slated for significant rejuvenation and has seen major intensification of residential development in recent years," she said.
Source: JLL Hotels and Hospitality
According to JLL Hotels and Hospitality, the sale is the first hotel across the country to be both listed and sold during COVID-19 and is indicative of the pub industry's resilience in the face of the global health and economic crisis.
Mr Musca said the imminent settlement of the Macquarie Hotel in Liverpool by the DeAngelis family for circa $43m, the acquisition of two new Tavern development sites in Calderwood and Jordan Springs by the Laundy Group, and ex-footballer Bill Young’s settlement of the Illinois Hotel were all struck pre- COVID-19, demonstrating the pace at which the market entered this unprecedented period of trade interruption.
“We are working closely with well-capitalised industry stakeholders assessing hotels on sites that can be significantly value- added long term, and presently have over $170 million worth of assets in various stages of the transaction and due diligence reflecting this," he said.
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