Singaporean real estate group Hiap Hoe has entered contracts to acquire the Aloft Perth and the adjoining office building 25 Rowe for $100 million from BGC Group.
Hiap Hoe already own a hotel asset in Melbourne and another office complex in Perth.
The Buckeridge family-owned BGC Group’s latest Perth divestment comes as the group continue its process selling off the late construction tycoon Len Buckeridge’s property empire.
The overall Buckeridge estate is worth an estimated $2.5 billion to $3 billion.
The hotel and office building, spanning a total site area of 6,385sq metres on the Great Eastern Highway, Riverdale in Perth, opened in May 2017 and provides a mixed income stream for the new owner.
JLL’s Mark Durran, John Williams and Tom Nattrass brokered the mixed-use asset, on one title, which generated “strong investor interest”.
“Both domestically and from South East Asia,” Durran said.
“The mixed-use income streams had strong appeal to both private and institutional investors.”
The office, 25 Rowe, is a rare non-CBD Grade A office building, 81 per cent leased with a WALE of 7.6 years. The office component comprises 10,569sq m of net lettable area and parking for 509 vehicles.
Operated by the Marriot, the hotel comprises 224 rooms and a 300sq m ballroom.
“25 Rowe is Perth’s newest and best suburban Grade-A office building and it provides the buyer with a diversified office income, seperate to that from the Aloft Hotel, and with further potential for it to take advantage of the continued upturn in Perth’s office market,” Nattrass said.
WA building magnate Len Buckeridge’s founded BGC more than 50 years ago.
Malaysia’s YTL is said to be one step closer to closing a deal on the Buckeridge’s Westin Perth for about $200m.