Investors and property fund managers have snapped up a spade of regional properties, including hospitality venues, warehouses, and other industrial assets.
CBRE recently announced Redhill Hospitality has acquired the freehold going concern interest in Tenterfield’s Best Western Henry Parkes Motel.
The 144 Rouse St property in Tenterfield, NSW was acquired off market for $4 million, adding to Redhill Hospitality’s portfolio of 10 regional motel assets across the eastern seaboard.
Best Western Henry Parkes Motel sits on a 7,606 square metre freehold land parcel, and comprises 31 rooms, a four bedroom cottage, and five bedroom manager’s residence. It also includes a 55 seat restaurant and function and events space.
The 3.5-star motel was sold with vacant possession and has been rebranded as The Henry Parkes Motel Tenterfield.
Redhill Hospitality founder and CEO Guy Peterson said, “We are focused on growing a portfolio of regional Australian motels that provide value to both guests and investors. Despite increasing domestic tourism, this sector has suffered from poor management, under investment and insufficient economies of scale and we see this as an opportunity.”
CBRE Hotels’ Associate Director Hayley Manvell said, “The asset is positioned along a key travel corridor on the New England Highway which connects Brisbane to Sydney. The motel offers strong upside to the purchaser through rebranding and repositioning significant underutilised space.”
Commenting on the recent flurry of motel sales across both Queensland and New South Wales, Ms Manvell noted, “With the trend of Australians exploring their own backyard showing no signs of slowing, particularly with the depreciation of the Australian dollar, savvy investors are viewing high quality motel assets within tourism hubs or along key travel thoroughfares as strategic acquisitions.”
The company has acquired several properties in the regional areas of Queensland and New South Wales this year.
In April, Trilogy acquired a 4.91-hectare industrial site in Torrington for $10.75 million, located in Toowoomba’s industrial precinct.
In June, the company purchased a warehouse and office facility on a 2.61 hectare site, located at Corbould Park in the Sunshine Coast Industrial Park – the region’s largest industrial estate – for $20.6 million.
Trilogy has also purchased a multi-warehouse facility on a 1.48 hectare site in Tomago, 20 kilometres northwest of Newcastle’s CBD for $16.14 million in September this year.
Trilogy Funds co-founder and Managing Director Philip Ryan said regional industrial properties may be favoured over inner-city assets, where tighter yields are more likely to soften in response to rising interest rates.
“The focus for the Trilogy Industrial Property Trust has been buying assets with good lease covenants with solid tenants in areas suited to logistics, warehousing, manufacturing, and mining. As a result, we have concentrated on regional areas, which are delivering significantly better returns for investors,” Mr Ryan said.
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