CBRE Hotels Facilitates Major Strata Amalgamation Deal for Sydney’s Potts Point Central Apartment Hotel

• BGO Strategic Capital Partners and Hotel Capital Partners have purchased the Sydney Potts Point Central Apartment Hotel for $31.5 million.
• The deal, brokered by CBRE Hotels, comprises 73 individual lots and is the largest strata amalgamation deal in Australia since the pandemic.

In a significant development in Australia’s hotel industry, the Sydney Potts Point Central Apartment Hotel has been sold for $31.5 million. The acquisition was made by BGO Strategic Capital Partners, a global multi-manager, and Hotel Capital Partners, based in Sydney. The deal, brokered by CBRE Hotels, marks the largest brokered strata amalgamation transaction in the country since the onset of the pandemic.

The sale of the hotel, which comprises 70 serviced apartments, a ground floor food and beverage outlet, and a rooftop public amenity with expansive views of Sydney’s CBD, was finalized this week. The deal included 73 individual lots, making it a significant transaction in the strata amalgamation landscape.

The Potts Point Central Apartment Hotel, a 4-star establishment, offers apartments with an average size of 23 square meters. The acquired property is known for its art deco architecture and is nestled in one of Sydney’s most sought-after regions.

Under the new ownership, the hotel will undergo a transformation, with plans to convert the building into co-living accommodation. The UKO, Australia’s largest co-living operator, will manage the planned co-living facility, potentially bringing a new dynamic to the local real estate market.

The transaction represents a significant investment in the Australian hotel market, underscoring the industry’s resilience amidst the ongoing global concerns. The sale process reportedly generated significant interest, resulting in over 150 enquiries and 15 bids from various parties, including developers, local high-net-worth individuals, and owner-operators.