Perth’s Wellington Street Hotel Grand Chancellor will be re-named Citigate Sebel Perth, following its acquisition by Brisbane-based property trust Property Funds Australia Ltd, for $52 million.
Property Funds Australia is 50 per cent owned by Mirvac Ltd, plans to lease the 276-room hotel to the Mirvac Hotels for ten years after the acquisition, from Singapore-owned Grand Central Management (Australia) Pty Ltd.
The trust, which also owns Cannington’s Sevenoaks office complex and the 1st Fleet warehouses in Welshpool, will add the Perth property to its 17-property portfolio, along with the Citigate Melbourne, with the Trust saying in an announcement that it did not plan to acquire more hotels in the near future.
PFA managing director Chris Morton said in an announcement that the property had good potential, given the development to take place around it, including the Perth Arena project, as well as Finbar’s proposed Code Apartments, to be built next door to the complex.
“The Perth hotel market is showing positive signs for growth, with an increase in domestic visitors to the region and analysis of data from the Australian Bureau of Statistics for the Perth region suggesting occupancy has shown continual growth from 2002 to 2006,” he said.
“The market is displaying strong occupancies, with room rate growth increasing at high levels due to the demand.”
The Hotel Grand Chancellor, once the Orchard Hotel, underwent a $2.5 million refurbishment in 1998, after being purchased for $36.8 million in 1997.
Report by The Mole and WA Business News
