This article originally appeared in The Hotel Conversation
Independent Australian wealth and asset management firm, Real Asset Management, has successfully sold the hotel component of Keppel Bay Plaza in Yeppoon, Queensland for $6.5 million in a deal brokered by JLL Hotels & Hospitality’s Vice President, Tom Gleeson.
The Railway Hotel and adjacent Star Liquor Warehouse were recently secured on new long-term leases, expiring in 2033.
Real Asset Management’s reason for selling was to capitalise on the buoyant hotel market nationally.
At a Glance:
- Keppel Bay Plaza in Yeppoon, Queensland sold for $6.5 million
- The Railway Hotel and adjacent Star Liquor Warehouse were recently secured on new long-term leases
- The Railway Hotel is the premier venue in Yeppoon underpinned by strong trading across all major revenue streams
Real Asset Management Head of Real Estate, Will Gray, said after obtaining significant value from re-leasing both assets, capital returns have been established for investors.
“We are continuing to see expenditure growth in Yeppoon and are excited by our proposed redevelopment plans for Keppel Bay Plaza,” said Mr Gray.
Yeppoon, 38 kilometres north of Rockhampton, is seen as the gateway to the southern Great Barrier Reef and the famed Great Keppel Island.
“The Railway Hotel is the premier venue in Yeppoon underpinned by strong trading across all major revenue streams and benefiting from its convenient location within Keppel Bay Plaza,” said Mr Gray.
Keppel Bay Plaza is one of 13 convenience shopping centres in Real Asset Management’s Australia retail portfolio which has assets of more than $370 million and an overall property portfolio of $460 million.
The firm recently launched a separate medical property fund to tap into the stable, non-cyclical returns available from investing in medical-related facilities as Australia’s population continues to age.