Sydney, 22 August – Tyche Capital Investments have purchased the property, which features a 112-room hotel, along with four retail tenancies that are wrapped in a stunning heritage façade.

The hotel has undergone extensive room renovations in recent years and is perfectly positioned as a lifestyle hotel under the Veriu brand.

Occupying a prominent corner site on Wentworth and Elizabeth Streets, this heritage building dates back to the early part of the 20th century. Its location straddles the bustling southern CBD fringe and the vibrant dining and creative precinct of Surry Hills.

The Veriu Group offered the freehold of the property for sale with the benefit of a long-term leaseback on the hotel.  Group CEO, Mr. Zed Sanjana noted the strategic importance of the property to the Veriu brand.

“Having rebranded from the Central Station Hotel in 2016, this property has quickly become the cornerstone of our Veriu brand.  We backed up this re-brand with a sensitive rooms refurbishment that tipped its hat to the heritage aspect of the building, while at the same time drawing on the modern, cutting edge Surry Hills community”.

Given the strategic importance of this property to the Group, the leaseback nature of the sale enabled them to retain a branding presence, whilst recycling capital to continue the rapid expansion of both the Veriu Hotels & Suites and Punthill Apartment Hotels brands.

Together the Veriu Group now operate over 18 hotels across the eastern seaboard, with a committed pipeline of a further 6 new hotels set to open over the next 2 years including new greenfield sites in Green Square (NSW), Queen Victoria Market (VIC) and Collingwood (VIC) and Alphington (VIC).

Tyche Capital Investments were attracted to the excellent location and strong yield profile. Further to this, the site offers future potential to develop upside, with an opportunity to build up and add more hotel rooms. Tyche now looks forward to continuing this long-term relationship between the two groups to explore further growth in the future.

The property was sold by Gus Moors, Joseph Lin and Karen Wales from Colliers International. “This sale demonstrates the ongoing strength of investor appetite for Sydney hotels. With limited opportunity for investors to break into this tightly held market, the Veriu Central was an attractive proposition for many groups,” said Mr Moors.

“The location and stability of income from this multi-tenanted building was particularly appealing to Asian capital. Tyche moved quickly to secure the property and will work with Veriu in the future to unlock the potential development upside” said Mr Lin.

For more information, contact Colliers International here

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