Leading agent Andrew Jolliffe of Ray White Hotels Australia is pleased to announce the sale of The Republic Hotel located on the cnr of Pitt and Bridge Sts in Sydney’s CBD.
The off-market purchase of the hotel was made by a highly regarded international property fund.
The impressive hotel spans three city streets and recently underwent a multi-million dollar renovation, including the introduction of a very popular rooftop bar.
The deal, concluded this week, sees the well-known hotelier Patrick Ryan enter into an agreement to lease back the business operation of the asset after 17 years of ownership of the 4 storey hotel.
Jolliffe, who would not be drawn on price, or the identity of the purchaser, believes that sophisticated interest in AAA Grade property in Australia’s gateway cities remains robust.
“Sydney is enjoying a demonstrable surge in infrastructure investment, and astute investors right throughout our Asia Pacific database have highlighted this point. As a direct consequence, we are actively representing numerous clients in respect of their very valuable freehold property assets, and expect that favourable market conditions will continue to underwrite strategic investment” said Jolliffe.
“We have averaged an exit yield of approximately 8% for our clients when considering our last 20 transactions this year, and
accordingly restate our view that the considered argument for further yield compression remains likely” Jolliffe concluded.