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News release


Double Bay Investment Icon to be sold

Golden Sheaf Hotel, Double Bay

JLL Hotels & Hospitality and CBRE Hotels have been exclusively appointed to offer the 'freehold-only' interest in the exclusive Golden Sheaf Hotel Double Bay For Sale by International Expressions of Interest. The property will be offered subject to 'long-term triple net leaseback' to long standing and market-leading national hotel and hospitality group, Solotel.

As a modern 'state-of-the-art' fully integrated hospitality complex, and widely regarded as at the pinnacle of hotel facilities nationally,  the Golden Sheaf Hotel occupies a strategic 1669sqm underdeveloped site area and will include Lessor ownership of the valuable hotel licence and 30 gaming machine entitlements.

CBRE Hotels Director, Wayne Bunz, suggested, "The opening of the record-breaking 5000sqm Woolworths retail and commercial Kiaora development behind the property and the further retail and community development adjacent to the site, will underpin this substantial operation foreseeably."

The hotel will be offered with a combined 40 year triple net lease to one of the Solotel Group businesses, with a straight 20 year first term and fixed annual rental growth of 3% per annum. As one of the largest and most successful private hospitality groups in the country, Solotel own and operate some 17 hotels and three restaurants across the eastern seaboard including a number of highly awarded restaurants in joint-venture with celebrity chef Matt Moran including Aria Sydney and Brisbane, and Chiswick in Woollahra. The group recently won the right to extend their tenancy at the internationally recognised Sydney Opera Bar and have been chosen as the preferred operators for a soon-to-be established new three level Barangaroo waterfront hospitality complex.

"The Solotel covenant, the coveted triple net lease structure and the exceptional underlying commercial property, undoubtedly ranks this passive investment opportunity alongside some of the lowest risk, quality annuity-based investment opportunities of any property asset class nationally or in the financial markets," said John Musca, National Director - Pub Investment Sales, JLL Hotels & Hospitality Group.

Double Bay has enjoyed a remarkable resurgence to prominence as a luxury retail, commercial and high-end residential precinct in recent years.  The much anticipated opening of the 140 room Intercontinental Hotel, redevelopment of the Double Bay cinemas and Kiaora lands and a maelstrom of new fashion outlet and trendy bar launches such as Pellicanos, Casablanca and Mrs Sippy, have re-established the area as an investment and business epicentre.

The property is expected to attract a diverse level of interest from Sydney and Melbourne based high net worth private buyers along with other substantial domestic and international investors looking to land bank an Eastern suburbs landmark hotel.

The International Expressions of Interest process will close on 6 November 2014.