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Singapore’s Hiap Hoe purchases Aloft Perth hotel and office tower in $100 million deal

November 2, 2018

The Aloft Perth hotel and office tower next door has sold to a Singaporean firm. Photo: Supplied

Singaporean real estate group Hiap Hoe has acquired the Aloft Perth hotel and adjoining office development 25 Rowe for $100 million.

The two properties, opened in May 2017, were owned and built by the Buckeridge family-owned BGC Group.

Both buildings are on one title at 25 Rowe Street, Rivervale, and occupy a 6385-square-metre site.

The new owner, which has developed projects in Melbourne and Perth, will need approval from the Foreign Investment Review Board before it can complete the sale.

The two buildings have sold together, providing a mixed income stream for the new owner. Photo: SuppliedThe two buildings have sold together, providing a mixed income stream for the new owner. Photo: Supplied

“The directors believe the property presents a prime investment opportunity, with high occupancy levels and a diverse mix of blue-chip tenants,” the company said in a statement.

“The property also provides an opportunity for the company to increase its recurrent income streams.”

Operated by Marriott, the 4.5-star hotel has 224 rooms, conference space, a ballroom, a rooftop terrace and fitness facilities.

Room sizes start from 33 square metres and food-and-beverage facilities include a restaurant, bar and a 24-hour “grab-and-go pantry” where guests can collect snacks.

The A-grade office tower has 10,569 square metres of net lettable area, and is 81 per cent tenanted with a weighted average lease expiry of 7.6 years. Tenants include engineering firm Honeywell and hardware giant Bunnings.

The seven-storey building also has end-of-trip facilities and parking for 509 vehicles.

JLL selling agent Mark Durran, who brokered the deal with John Williams and Tom Nattrass, said the mixed income stream from the two properties was a drawcard for both private and institutional investors.

“Given the high build quality of this near-new property and its unique income profile, we received strong investor interest as expected, both domestically and from South-East Asia,” he said.

Mr Nattrass said 25 Rowe was one of the rare A-grade buildings in a non-CBD location.

“25 Rowe is Perth’s newest and best suburban grade-A office building and it provides the buyer with a diversified office income, separate to that from the Aloft Hotel, and with further potential for it to take advantage of the continued upturn in Perth’s office market,” he said.

“Investors were also attracted by the high quality of blue-chip tenants in the office component.”

BCG is in the process of selling off the group, which could see the construction and mining conglomerate broken up into business units.

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