South Melbourne Choice Hotel for sale - Burgess Rawson
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South Melbourne Choice Hotel for sale - Burgess Rawson
South Melbourne’s recently developed Choice Hotels, 51-59 Palmerston Crescent for sale through Burgess Rawson, Zomart He.
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Burgess RawsonChoice Hotels, 51-59 Palmerston Crescent, for sale by Burgess Rawson -
Burgess RawsonChoice Hotels, 51-59 Palmerston Crescent, for sale by Burgess Rawson
South Melbourne’s recently developed Choice Hotels has been relisted for sale through Burgess Rawson Partner and Head of Asian Investment Services, Zomart He.
The property is being sold on behalf of prominent management and development firm, APH Holding and is expected to achieve a price in excess of $24 million.
Located at 51-59 Palmerston Crescent, the prominent five-storey hotel is set on an expansive 789- square-metre corner site in one of the most vibrant CBD fringe precincts. The building comprises 125sqm of retail space on the ground floor, 69 apartments, a hotel reception, administrative offices, a conference room, a gym and basement parking.
The 69 units consist of 57 studio apartments and 12 one-bedroom apartments, eight of which interconnect with a studio apartment to make a two-bedroom apartment.
The property is leased on a 10-year basis at a net annual rental of $1,461,432 with annual rental reviews to four per cent.
The new additions double Choice Hotels Asia-Pac’s portfolio in the highly competitive inner city Melbourne market, adding 271 apartment-style rooms across five prime locations near key business hubs – South Melbourne, North Melbourne, Melbourne CBD, East Melbourne, and Box Hill.
Mr He noted that with its prime location adjacent to the Albert Park Grand Prix track and just two kilometres from the Melbourne CBD, the Choice Hotels is a freehold investment providing investors with the advantage of minimal capital expenditure on a new building along with depreciation benefits.
“Investors from both local and international markets are drawn to the long-term leases with strong covenants and the substantial underlying land value.
“We anticipate widespread interest due to the prime location and the familiarity buyers have with the area. Additionally, the asset offers significant tax depreciation benefits that will further appeal to buyers,” he added.
Related Reading:
Choice Hotels Asia Pacific welcome Adil Moosa and David Silcock - Investments & Development team | The Hotel Conversation
Choice Hotels Asia-Pac expands its presence in Australia with the acquisition of the City Edge Apartment Hotels franchise brokered by ResortBrokers | The Hotel Conversation
