Hong Kong Firm Strikes Biggest Single Hotel Deal in Australia for Record AUD530 Million

Hong Kong-based investment manager Baring Private Equity Asia (“BPEA”) has acquired 587-key Hilton Sydney for approximately AUD530 million and AUD900,000 per-key, the biggest hotel deal in Australian history. BPEA forecasts the country’s strong recovery in the tourism sector and the underlying value of central business district hospitality real estate. The seller is the Singapore-based Bright Ruby, which paid AUD442 million to acquire Hilton Sydney in 2015. The deal size of the acquisition is the highest ever paid for an operating hotel, beating the AUD463 million paid by China-based insurer Sunshine Insurance Group for Sydney’s 557-key Sheraton on the Park in 2014. In March 2022, Sweden-based private equity firm EQT Group acquired BPEA for AUD10.4 billion as part of plans to expand its investment portfolio in APAC including Australia. Recent analytics from STR show that Sydney and Melbourne reached an average occupancy rate of 47% over the Q1 2022, while Brisbane, Perth, and Adelaide demonstrate average occupancy rate of 54-57% in Q1 2022.

Shun Ho Construction Acquires Bay Bridge Lifestyle Retreat for HKD1.42 Billion

Hong Kong-based Shun Ho Construction Holdings, a wholly-owned subsidiary of Hong Kong-based Magnificent Hotel Investments, has entered into the Sale and Purchase Agreement with Hong Kong-based Crest Incorporated to acquire Ocean Time Investments Limited, the company who wholly-owned the 435-key Bay Bridge Lifestyle Retreat in Hong Kong for HKD1.42 billion. The property is located at No. 123 Castle Peak Road, Ting Kau, in the western New Territories overlooking Tsing Ma Bridge. It features one food and beverage outlet, a fitness centre, an outdoor swimming pool, a reading corner, and a car park. This deal is the largest hotel transaction by a local buyer since December 2018, showing confidence in Hong Kong tourism industry recovery and a forecast to recover once mainland China reopens.

Weave Living Partnered Up to Acquire Hong Kong’s Grand City Hotel for HKD900 Million

Under the sale and purchase agreement, Hong Kong-based Weave Living Real Estate HK Holdings Limited (”WL”) and UK Virgin Island-based AG SYP (BVI) L.P., a company controlled by US-based investment firm Angelo, Gordon & Co., L.P., have jointly acquired Hong Kong-based Babenna Limited (“BL”), a direct wholly-owned subsidiary of Magnificent Hotel Investments Limited (“MHI”) for HKD900 million. BL is the sole owner of the 214-key Grand City Hotel (“GCH”) in Hong Kong. Located next to the exit of Sai Ying Pun MTR station, the property features one food and beverage outlet, a pool, and a car park. WL is understood to be converting the property into a co-living space, with a gross floor area of 60,150 square feet. This was the third property WL has purchased in Hong Kong in nine months.

Auckland Airport Receives NZD300 Million Upgrades

New Zealand’s Auckland International Airport (”AIA”) is investing NZD300 million in the new phase of its expansion project. The investment will bring a new transportation hub to the airport, which allows undercover pick-up and drop-off for cars and buses next to the current international terminal. The adjoining land was also set aside for future shift to mass rapid transport. AIA will further invest NZD1 billion to combine its domestic and international terminals, with timing guided by the pace of the recovery of the travel. NZD185 million has been already set aside for enabling work for the combined terminal. The eastern baggage hall will be also demolished next month for a new baggage handling system, which allows for real-time tracking of baggage carrier trays.

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