The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
Untitled design (8)
FULL PROGRAM RELEASED FOR URBANITY-25 CONNECTING PROPERTY LEADERS ACROSS THE ASIA PACIFIC
FULL PROGRAM RELEASED FOR URBANITY-25 WHERE THE PROPERTY INDUSTRY CONNECTS
VIEW FULL AGENDADETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
HotelStaff WriterMon 18 Sep 17

Byron Bay’s Beach Hotel Sells for $70 Million

db5b2da9007327137070a4834bc7d1e9

Melbourne-based Impact Investment Group is set to expand its portfolio with the $70 million acquisition of Byron Bay’s iconic Beach Hotel.

Known as the "Top Pub" to locals, the Beach Hotel is situated on a 4,585sq m site at the apex of the commercial precinct of Byron Bay.
The hotel was listed mid last year with price expectations of between $75m and $80m.


In an off-market deal CBRE Hotel’s Daniel Dragicevich and Wayne Bunz representing Impact Investment Group struck a deal with Max Twigg, owner of the iconic beach hotel who paid $44 million for the hotel in 2007.

“This is a strong price for an Australian pub and highlights the considerable ongoing interest in the country’s hotel investment market.” Bunz said.

Melbourne pub industry identity John van Haandel currently leases the beachfront property on a 10-year lease with a further 10-year option. Based on current rental income, the sales price represents a 6.3% passive investment return.

An IIG spokesperson said the group saw strong potential to regenerate the “heart and soul” of Byron Bay with a strategy focused on achieving bold green and social impact initiatives over a three to four year period.

“We’re looking forward to settling this transaction in six months’ time. It’s a great hotel, and we’ve already made a lot of progress planning our environmental upgrades and how we’ll work with the operator and locals to deliver real positive impacts for the Byron Bay community.”

Hotel capital markets have been dominated by Eastern seaboard transactions, with Sydney and Melbourne amongst the strongest performing markets. The scarcity of hotel product for sale, particularly in the CBD market, with a large influx of foreign and local capital search for opportunity continues to drive yields stronger within a highly competitive transaction environment.

New South Wales lead hotel sales volume in 2016 with around 40% of total hotel sales by value. Major hotel sales included Park Regis City Centre ($46m), the Vibe Hotel ($97m), Mercure Parramatta ($40m) and the Adina Apartment Hotel ($30.6m).

HotelAustraliaReal EstateSector
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
Forme's James Place on James Street, Fortitude Valley Brisbane
Exclusive

Forme Pushes the Boundaries on James Street Precinct

Renee McKeown
4 Min
Exclusive

Invicta House Rebirth Proves Recipe for Heritage Success

Leon Della Bosca
7 Min
Exclusive

Freecity’s $300m PBSA to Prove Worth of Modular at Scale

Leon Della Bosca
7 Min
Exclusive

Billbergia’s John Kinsella: Whiskey, Fun and a Fear of Heights

Vanessa Croll
8 Min
View All >
HWL Ebsworth's adaptive reuse plan for 5 martin Place Sydney
Office

Martin Place ‘Money Box’ Revamp Plans Filed

Leon Della Bosca
QBCC PCA Breakfast EDM
Residential

Queensland Developer Licensing Scheme Axed

Clare Burnett
South Molle Island before Cyclone Debbie
Hotel

South Molle Island on Block as Chinese Owners Exit

Leon Della Bosca
Chinese owners reportedly seek $30m after $25m purchase as Whitsundays tourism market attracts billionaire investment…
LATEST
HWL Ebsworth's adaptive reuse plan for 5 martin Place Sydney
Office

Martin Place ‘Money Box’ Revamp Plans Filed

Leon Della Bosca
4 Min
QBCC PCA Breakfast EDM
Residential

Queensland Developer Licensing Scheme Axed

Clare Burnett
5 Min
South Molle Island before Cyclone Debbie
Hotel

South Molle Island on Block as Chinese Owners Exit

Leon Della Bosca
4 Min
Exclusive

Private Credit Surge, Skittish Buyers Force Banks to Loosen Presale Rules

Taryn Paris
5 Min
View All >
ADVERTISEMENT
Article originally posted at: https://theurbandeveloper.com/articles/byron-bays-beach-hotel-sells-70-million