Australia’s pub baron has pulled a trifecta, snapping up his third Central Coast hotel this month for nearly $60 million.
The Crowne Plaza Terrigal is the biggest hotel on the Central Coast, occupying over 9,000 m² of beach frontage. It offers multiple bars and dining services, a gaming room with 21 EGMs and 199 four-star rooms.
Its acquisition is another venture between the Laundy family and Greg Karedis, who have similarly partnered in the $110m Sheraton Noosa last year and the Manly Pacific back in 2003.
Greg Karedis is the son of Theo Karedis, who founded Theo’s Liquor and later sold it to Coles for around $175 million.
Vendors were Eureka Funds Management (EFM), which purchased it in 2005 from the Intercontinental Hotel Group (IHG). It has continued operation under IHG and will continue to do so until 2020, with a further 10-year option.
EFM has been selling down its portfolio ahead of a fixed-term fund maturing.
Sale of the Crowne was through Ray White’s Andrew Jolliffe and CBRE’s Wayne Bunz and Rob Cross. Ray White director for the Asia-Pacific region, Jolliffe told PubTIC market conditions are making this type of asset highly desirable.
“Off-market activity in the 4 and 5-star hotel space remains very active in the Asia-Pacific, and accordingly we anticipate reporting key sales in the June quarter as the low Australian dollar continues to simulate both overseas investment and tourism.”
Built in 1988, EFM executed a $10+ million refurbishment of the hotel resort that was completed in 2014. This has seen occupancy rise to 73.3 per cent (2014), but the hotel still makes more than half of its revenue from food & bev.