East Village Hotel continues freehold spree
The freehold interest of the East Village Hotel in the Sydney suburb of Darlinghurst has been sold, continuing a recent spate of freehold sales.
The sale reflects a passing yield of circa five per cent and comes after owners Goodtime Hospitality tested the freehold market earlier this year.
A private investor bought the freehold in a deal negotiated by JLL Vice President, Kate MacDonald, Senior Vice President, Ben McDonald and Investment Sales Director, Dylan McEvoy. Goodtime turned to JLL for a more strategic approach to drive an outcome on their behalf, ultimately leading to the investment sale subject to the existing lease.
Utilising the broader JLL investment sales platform in conjunction with leveraging key stakeholder relationships in the hotel space, MacDonald said significant interest was generated from a wide ranging investor pool in search for quality commercial property assets with strong tenancy covenants and lease metrics.
“Crafting the outcome meant recognising the hotel operator’s pedigree alongside the strong underlying property fundamentals and we’re delighted to assist yet another city fringe Sydney hotel owner to meet their divestment objectives,” McDonald said.
The sale follows other recent freehold deals including the Summer Hill Hotel, and demonstrates the value being ascribed to these unique annuity income streams underpinned by irreplaceable, attached licensing and gaming assets.