The freehold interest of the Boronia Hotel sold for $24 million, 48 hours prior to the official campaign close. Following the recent freehold sale of the Edwardes Lake Hotel at $28 million, the transaction yet again shows the appetite nationally for large scale investment hotels. The property was offered exclusively for sale via JLL’s John Musca, Will Connolly and Stuart Taylor in conjunction with Steve Cropley and George Iliopulos of Cropley Commercial.

John Musca, JLL Hotels National Director, commented “The sale highlights the esteem investors hold in hotels as an asset class, delivering an IRR exceeding any other form of retail property due to the millions of dollars of underlying perpetual goodwill value that exists in each tenancy, the future restabling arbitrage and value uplift is simply incomparable”.

Presented to market via a national ‘Expressions of Interest’ process, the property gained interest from both private and institutional investors with numerous offers received from parties nationwide. The swift, unconditional actions of the successful purchaser ultimately secured the asset prior to EOI close. Based interstate and a new entrant to the industry, the sale sets another example of market interest in the hotel industry diversifying at a rapid rate.

The Boronia Hotel, previously known as Zagame’s Boronia, was offered with a sought-after investment grade, 60-year, triple net lease with the venue operating 80 gaming machines and a commencing net annual income of $1,200,000, with the property commanding a high-profile corner site of 7,053sqm in the heart of Boronia’s retail precinct.

Will Connolly, Vice President, JLL Hotels commented, “The level of momentum the hotel market is experiencing is quite extraordinary, with the sector now sitting deservedly alongside traditional retail investment assets. The fact that this sale was executed 48 hours prior to EOI close is just another example of the feverish desire for freehold pub assets across the country and we anticipate this to continue into 2022”.

Commenting on the culmination of another successful sale campaign, George Iliopulos, Director Cropley Commercial, concluded “It was extremely satisfying presenting yet another highly rated, triple net lease opportunity to market. We wish the purchaser the very best with their acquisition and introduction to one of the nation’s most rapidly evolving markets”.

To request a sales analysis please contact either of the selling agents via the below contact details.