Iris Capital has nailed another development play, selling its DA-approved Crown Hotel in Parramatta to Coronation Property, in a transaction worth $50 million.
Iris bought Crown Parramatta mid-2014, with principal Sam Arnaout negotiating the deal himself with vendor Rod Salmon for the Church St pub as well as Homebush’s Wentworth Hotel.
In June 2015 Iris sold the Mercure complex in Kings Cross for $170m to Chinese developer Greenland Group, with an approved DA for redevelopment of the hotel rooms in the 19-storey tower into luxury apartments.
It was widely mis-reported at the time that the deal included the Crown Hotel.
Early 2016 Iris paid around $8 million for the heritage-listed three-storey largely vacant building at 265 Crown St, a few doors down from the Crown at #295, the two separated by other titles and Phillip St.
It has now been confirmed Iris has sold the Crown and 265 Church to Coronation Property for a total of $50 million.
“I think it’s a phenomenal price for a phenomenal asset, no doubt about it,” Arnaout told PubTIC.
Coronation is already proceeding with a massive 54-storey tower beside and above the heritage-listed Church at 8 Phillip Street, slated for 35 floors of apartments, a rooftop bar and Parramatta’s first 5-Star hotel. The property is currently occupied by Rockpool Group’s Bavarian Bier Café, and owned by the Sahyoun family’s Karima Group, who are partnering with Coronation on the project.
The Crown Hotel has a prominent frontage on ‘Eat’ (Church) Street, and backs onto the site being developed at 8 Phillip, giving the tower potential frontage on both.
“There’s obvious synergies in Coronation acquiring the site,” noted Arnaout. “It makes absolute sense for them, and I wish them all the very best of luck.
“We’ve passed the baton on to them to deliver the site.”
Beyond its worth as a pub and its access to Church St, the Crown comes with its own DA, secured by Iris, for a 45-storey mixed-use residential development, with retail and underground parking.
While Coronation is understood to be purposing the building at 265 Church as project headquarters during the construction of the tower(s), it has not yet released plans for any amalgamation of 8 Phillip and 295 Crown, but does intend to continue operation of the pub pending further proposals to be released later this year.
Meanwhile, Iris – which has seriously expanded its property and development business in recent years – is on the eve of both starting and finishing other large-scale projects.
Capitalising on its strategic acquisition of The Bourbon in Kings Cross, along with the Empire Hotel, the backpacker’s hostel between and two further titles, Arnaout says Iris is looking to lodge a DA in October to consolidate the block, boasting five properties, two liquor licences and 60 EGMs.
“I think it will be unequivocally Sydney’s best development site,” he says.
And wrapping up its huge Newcastle East End project, occupying 1.66Ha and four city blocks, Iris will shortly open the display suite, with apartments officially coming to market 16 September.
“It’s been quite a journey … we’re very excited about it,” exclaims Arnaout.
“I’m taking orders. Let me know how many you want!”
