In an early contender for the biggest national deal of 2021, Sam Arnaout’s Iris Capital has bought the northern beaches’ stately Ivanhoe Hotel on Manly Corso.
Trading over three manicured levels, the Ivanhoe has long been a staple of the Manly community, owned for 36 years by the highly respected and private Peterson family.
The Petersons have a strong track record in hotels, having also divested the Plumpton Hotel, to Arthur Laundy, around eight years’ ago. They still hold the Court House and Central Hotel, both in Port Douglas.
“[We] are proud to have served the Manly community for almost four decades, and it’s now time for another family to take the reins of the Ivanhoe Hotel Manly,” offered family patriarch, Tim Peterson.
“We leave the Ivanhoe in the very capable hands of Sam Arnaout and his family.”
The sale price was not announced, but sources close to the deal suggest Iris put up $57 million for the Ivanhoe, bookending its position on Manly’s famous Corso, since its record-setting purchase of The Steyne mid-2019.
The Steyne has seen a major multi-million-dollar facelift, largely executed during the shutdown period. Arnaout says the group is paying particular focus on its “capital application strategy” to ensure flexibility and allow them to move quickly on opportunities that suit their goals.
“Given our existing and long-hold investment strategy already within the area, The Ivanhoe Hotel property enjoyed the benefit of our attention and desire to contribute more broadly to the precinct, and the continued creation of enhanced local place branding – where everyone prospers.”
The off-market deal was executed through HTL Property directors Dan Dragicevich and Andrew Jolliffe, who note consistent drivers in the result.
“While there are some clear benefits to Iris’ buying the Ivanhoe, given its proximity to The Steyne, the opportunity really did present some never-to-be-repeated fundamentals, in a tourism business precinct that has seen major growth in visitors over the past few years, and consequently it appealed to several parties,” explained Dragicevich.
Already reporting ten transactions for the year, significantly including the recent Short-Laundy buy at Lennox Head and JDA buyout at the General Gordon, Jolliffe says HTL recognised that even in a record low interest rate environment, the results speak to the preparation of the players.
“When we analyse the successful buyer profiles across the deals we have recently concluded, the commonality all these deals share is that experienced operators with determined capital deployment strategies are winning the race to these one in 50-year asset opportunities.”
