IPG puts Century Walk/Novotel on the block
Sydney-based advisory firm iProsperity Group has put two major assets – the Century City Walk Entertainment Centre and the adjoining 200-room Novotel Melbourne hotel – on the market in Glen Waverley, one of Melbourne’s key growth areas.
Located on a 10,308 square metre site on Springvale Road, the 8,403 square metre (GLA) Century Walk Entertainment Centre will be sold with a net passing income of $2.89 million per annum from a raft of high profile tenants including an eight screen Village Cinema complex, Strike Bowling, and Pancake Parlour, while the Accor operated, 200 room Novotel, has a current annual income of $5.1 million.
CBRE Director Mark Wizel is managing the sale of the Century Walk component with Lewis Tong and Josh Rutman, with Savills’ Managing Director Hotels, Michael Simpson and Director of Hotels, Vasso Zographou, managing the sale of the Novotel component.
The joint agents said assets in the area were highly sought after by a range of buyers, including high net worth individuals, and had particularly attracted off-shore interest driven partially by the large local Asian community.
The Burwood One sale underlined just how strong the demand for assets in this region have become in attracting one of the strongest fields of potential purchasers for any asset in Melbourne over the last few years and that included a significant contingent of high net worth bidders backed by Asian capital.
“We expect even more interest in these two very strong assets in arguably the best credentialed inner suburban growth location in Melbourne,” Mr Wizel said.
Burwood One sold for $181.5 million to a private Hong Kong based investor on the sharpest yield (5.11%) ever paid for a sub-regional centre in Australia.
Mr Simpson said the Novotel was an exceptional property that stood to benefit from continued growth in tourism, the low Australian dollar, low interest rates as well as the lack of competition and available stock.
“There are a range of factors which continue to underpin the robust Australian hotels market. Those hotels that are situated in the best locations, such as the Novotel Glen Waverley, are well placed to experience continued growth,” Mr Simpson said.
He said the high occupancy rates that the Novotel enjoys flowed from its close proximity to a thriving corporate precinct which included Tally Ho and Salta business parks and the BMW head office, as well as the large Asian community.
Mr Wizel said Century Walk’s growth prospects seem assured given its prominence on one of Melbourne’s suburban arterials, and its standing as an extremely popular retail and entertainment destination underpinned by a densely populated and growing residential area.
“This centre is part of the social fabric of the local community as both a retail and entertainment venue and the pedestrian traffic reflects that central role.”
The two properties form part of the Glen Waverley Activity Centre anchored by the Glen Waverley train station and surrounded by medium and large scale retail and residential developments including Vicinity Centres’ The Glen and the three new residential towers to be completed by Jeff Xu’s Golden Age.