Hoi Hup Realty acquires Four Points by Sheraton Sydney for US$144.6 million

[SINGAPORE] Hoi Hup Realty has acquired Four Points by Sheraton Sydney for A$201.8 million (US$144.6 million), marking its first foray into the Australian property market.

The 309-room hotel is located in Tech Central, a major technology and innovation district in Sydney.

Opened in late 2018, the hotel has 45 suites, a bar and restaurant, a fitness centre and 270 square metres (sq m) of conference and meeting space.

It recently underwent “extensive capital expenditure works”. This includes the conversion of an under-utilised conference floor into 12 new guest rooms, as well as the renovation and repositioning of the ground floor F&B offering to “capitalise on the area’s residential density and vibrant student population”.

The property is near Central Station and several major developments in the Tech Central precinct, including Dexus and Frasers Property’s A$2.5 billion Central Place Sydney, which comprises over 140,000 sq m of office space.

Also nearby is a A$1 billion, 39-storey timber tower next to Central Station, where Australian software company Atlassian will be the anchor tenant and accommodate about 4,000 employees.

Gus Moors, managing director at JLL’s Hotels & Hospitality Group, said: “This transaction highlights the ongoing strength of the Sydney hotel investment market.”

He added: “Investment-grade hotel assets in Sydney remain tightly held, and opportunities to acquire properties of this calibre are rare. The competitive sale process reflected strong interest from both domestic and international investors.”

Andrew Langsford, executive vice-president at JLL’s Hotels & Hospitality Group, said the hotel’s location in Tech Central, together with its recent capital improvements, made it an attractive investment proposition.

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JLL and CBRE brokered the deal.

The hotel is managed by Marriott International under the Four Points by Sheraton brand.

In 2019, Hoi Hup last bought a hotel asset, acquiring Andaz Singapore – the luxury hotel component of the Duo mixed-use project – from M+S for S$475 million. M+S is a joint venture between Malaysian sovereign wealth fund Khazanah Nasional and Singapore’s Temasek.

The company also owns Courtyard by Marriott Novena Singapore, which features 250 guest rooms in a 33-storey mixed-use development.

Its other projects include an upcoming executive condominium development in Yishun. Hoi Hup bagged the Miltonia Close site in April this year at S$340.9 million or S$732 per square foot per plot ratio, outbidding two other groups.

Hoi Hup is also redeveloping a major 0.6 hectare site on High Holborn in London. The project area comprises three buildings: 322 High Holborn, Holborn Gate and 44 Southhampton Buildings. It will deliver more than 370,000 square feet of new Grade A workspace.