GIC to acquire A$620m Australia hotel portfolio with Partners Group, Salter Brothers
SINGAPORE sovereign wealth fund GIC will acquire a portfolio of 11 Travelodge hotels in Australia with global private markets firm Partners Group and Australian hospitality operator Salter Brothers, Partners Group said in a statement on Friday.
The portfolio, with a gross asset value of A$620 million (S$620.3 million), is diversified across key metropolitan centres including Sydney, Melbourne and Brisbane, and consists of over 2,000 rooms, the group said.
It added that the acquisition from Mirvac and NRMA is also the largest of its kind to transact in Australia.
Partners Group said the transaction "provides an opportunity to capitalise on the long-term relative value of Australia's hospitality sector", and noted that the portfolio will likely benefit from a nationwide campaign in Australia that aims to increase domestic tourism.
The group added that it plans to improve the utilisation of the hotels through initiatives including rebranding, select upscaling and widening their visibility through the expansion of loyalty and rewards programmes across a wider distribution channel.
Managing director of private real estate at Partners Group Rahul Ghai said: "We particularly like this portfolio as it provides initial income with potential for further yield through transformational value creation strategies; it also provides a significant foothold from which we can scale towards a larger portfolio over time."
A NEWSLETTER FOR YOU
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
There is also evidence of a steady economic recovery in Australia, said Euan Kennedy, member of management of private real estate at Partners Group.
"Rising rates of vaccination are likely to support the progressive reopening of the economy and bode well for increased room penetration from both domestic and foreign travellers over the course of our investment," Mr Kennedy added.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
DBS puts 46 retail units, HDB shops on market for S$210 million
US mortgage rates jump above 7% for the first time this year
Far East Shopping Centre back on market at unchanged S$928 million asking price
London mansions sold at 30% discount spell gloom for luxury market
Delfi Orchard up for collective sale at S$438 million guide price
US existing home sales drop in March; median price increases