CDL to acquire Sofitel Brisbane Central for $159.2 mil
CDL has acquired Sofitel Brisbane Central for A$177.7 million ($159.2 million) or A$427,000 per key. In a 50:50 joint venture with its subsidiary Millennium & Copthorne Hotels New Zealand Limited, the group’s wholly-owned hotel subsidiary Millennium & Copthorne Hotels Limited (M&C) on March 22 entered into a purchase sale agreement (PSA) and business asset sale agreement with Brookfield Asset Management.
The five-star luxury Sofitel Brisbane Central is located in the heart of the city’s central business district (CBD). It comprises 416 rooms and suites and is Brisbane’s largest single-branded hotel by room inventory. The 30-storey hotel features nine meeting and conference rooms that can accommodate up to 1,100 people and offers direct access to Brisbane’s Central Station.
From the hotel, guests enjoy inspiring views of the city’s skyline, ANZAC Square, the Sunshine Coast and its iconic attractions such as Eagle Street Pier and Queen Street Mall – all within walking distance.
The acquisition is said to align with City Developments Limited’s (CDL) diversification strategy with Australia being one of its key markets. The group also has several development projects, including Fitzroy and The Marker in Melbourne, and Brickworks Park and Treetops at Kenmore in Brisbane.
“The proposed acquisition marks the group’s entry into Brisbane’s hospitality sector,” says CDL’s executive chairman Kwek Leng Beng. “Brisbane is amongst the key hospitality markets in Australia that have enjoyed the strongest revenue per average room (RevPAR) recovery in 2022, significantly exceeding pre-pandemic levels.” He adds, “Brisbane’s pipeline of over A$20 billion in infrastructure projects will further enhance the city’s position as a world-class sporting, tourism and business events destination.”
New Tengah Plantation Close EC development, the largest executive condominium in Singapore, is set to become a major catalyst for Tengah Town’s Tengah Plantation EC growth and development offering great connectivity to the rest of the city.
With Brisbane being the host city for the 2032 Olympic and Paralympic Games and the Rugby World Cup in Australia in 2027 and 2029, the acquisition presents an attractive opportunity for CDL to enlarge its presence in Australia and enhance its recurring income stream. Kwek Leng Beng notes, “The group remains focused on optimising our hospitality portfolio.”