The Ibis Budget on Elizabeth Street is the latest hotel to hit the market, amid a slew of COVID-19-affected hotels up for sale.
Singapore-based Well Smart Investment Holdings tried to sell the CBD holding in mid-2019 and has come back for a second go, just in time for the federal government’s interstate air travel voucher scheme.
It’s at the cheaper end of the market and is likely to fetch between $23-$25 million.
Operated by AccorHotels, the three-star hotel is in a refurbished heritage building at 97-103 Elizabeth Street, between Collins and Bourke streets and a short walk from Flinders Street station.
CBRE hotel agents Wayne Bunz and Scott Callow are handling the expressions of interest campaign for the 146-room hotel.
Mr Callow said there are signs of a slow market recovery.
“The Melbourne CBD hotel market is typically tightly held and is expected to rebound strongly once international borders reopen,” he said.
“The Ibis Budget provides a rare entry point acquisition opportunity in the Melbourne CBD, given the escalation in city land values over the past five years.”
Outside of the CBD, the Malaysian owners of Bayview on the Park, which overlooks Albert Park Lake, have put the 203-room hotel on the market.
Oriental Holdings is hoping for between $60-$70 million for the Queens Road hotel, which is on a huge 7000 square metre landholding. JLL is marketing the now empty, graffitied building.
And Kuwati Sheik Mubarak A.M. Al-Sabah’s Action Hotels Group is selling a $200 million portfolio, which includes the Novotel South Wharf, the Ibis Glen Waverley and the Ibis Budget at Melbourne Airport.
Hotels data group STR shows occupancy rates in Melbourne fell by nearly half last year to 41.6 and revenue per room fell by 57.9 per cent.
But hotel sales have held up. The five-star Primus in Sydney recently fetched $132 million and the Travelodge portfolio has reportedly sold for around $600 million.
The Pro-Star Motors Mercedes Benz dealership in Hawthorn is for sale for the first time in more than 37 years.
Records show luxury car dealer Lasath Algama is selling the 2645 sq m landholding at 135-149 Burwood Road that he amassed since the 1980s.
The site covers five properties, which CBRE agents David Minty, Nathan Mufale, Scott Hawthorne and JJ Heng are selling in one-line or individually.
It’s near the corner of Power Street and next door to the Growthpoint-owned office of paper packaging giant Orora, which is valued at $113 million.
Hawthorn railway station is a short walk away. It’s expected to fetch north of $17 million.
Mr Minty is expecting interest from major developers and landbankers.
The Hawthorn office market is expected to be one of the winners in the restructuring of the workplace.
Fitzroys agent Stephen Land has negotiated three fresh leases in Hawthorn, including two deals on level one of 104 Burwood Road, and another at 313 Burwood Road.
A desire to be more centrally located has prompted commercial office cleaners, the Keen to Clean Group to sign up for the 130 sq m suite 1 at 104 Burwood Road on a three-year term with a three-year option.
Meanwhile, Stamford Lawyers has taken suite 2 and is moving out of the CBD. They have signed a two-year lease with options on 140 sq m at $30,000 a year.
Mr Land said: “There were very high levels of enquiry for these offices considering the limited size offering in the area and the affordable rental level.”
The “fluid COVID situation” means smaller tenants are committing to shorter-term deals than they previously would have, he said.
“There are plenty of business-owners seeking a move to city fringe and inner suburban locations to be closer to their homes, making it easier to access the workplace and collaborate with colleagues in-person during a period of more flexible working hours and arrangements,” he said.
Elsewhere, fuel systems engineers Leighton O’Brien has upsized to a 380 sq m office at 313 Burwood Road on a five-year lease with five-year option, paying $218,983 a year in rent.
The engineers will move into space previously occupied by Generic Partners, who moved to Cremorne after they were bought out by Arrotex Pharmaceuticals.
In Fitzroy, media studio Phoria has doubled its footprint at the old heritage-listed Salvos building at 297 Napier Street and is now its sole tenant.
Phoria has taken a six-year lease on level one, paying $66,000 a year. It took the ground floor three years ago.
The Heidelberg headquarters of Chunky Dips maker Simply Delish is up for grabs.
Simply Delish has been at the Darebin Creek-facing facility at 28-40 Sheehan Road since 2009 and has recently signed a new 12-year lease.
The 3800 sq m building has been fitted out for their dip-making operations and includes cool rooms, sealed flooring, in-ground waste disposal, a temperature-controlled production area and freezer rooms. It’s on a sprawling 4850 sq m landholding.
Records show SDI Group’s Emanuel Varagiannis, who also part-owns Simply Delish, sold the building to Matthew Bailey’s Heidelberg Capital at the end of 2019 for $7.1 million.
Stonebridge Property Group agents Rorey James, Dylan Kilner, Kevin Tong and NSL Property Group’s Guy Naselli are handling the listing for which they are expecting more than $8 million. Expressions of interest close on April 15.
Mr James said: “This is a very tightly held pocket of Melbourne, with very little turnover in assets and tenants and this is one of the largest landholdings in Heidelberg West.”
Barkly Square – in Mornington, not Brunswick – is back on the market. The nine-shop complex at 53-55 Barkly Street has been put up for auction by the property’s mortgagee.
The retail centre was last put to the market in 2019 – by receivers Cor Cordis – but the property was refinanced at the last minute and withdrawn from sale.
Records show developer Nino Mimmo’s Torca Constructions bought it in 2006, paying $3.6 million. It is expected to sell for around $8 million when it goes to auction on March 17.
A report on the company’s affairs shows more than $18 million in loans were secured using the Barkly Square property.
Stonebridge Property Group’s Rorey James, Nic Hage and Kevin Tong have been marketing the property in conjunction with Nichols Crowder agents Jamie Stuart and Tom Crowder.
Mr James is the latest ex-CBRE agent to join Stonebridge, along with Mr Hage and Kate Johnstone.
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