BGC sells Aloft Perth hotel and 25 Rowe office building for $100m

PERTH – The Aloft Perth together with the adjoining office building 25 Rowe has sold in a $100 million transaction through JLL’s Mark Durran, John Williams and Tom Nattrass. 

Singaporean group Meteorite Land has entered into contracts to acquire the property. 

Mr Durran, Managing Director – JLL Hotels & Hospitality Group, said: “Given the high build quality of this near-new property and its unique income profile, we received strong investor interest as expected, both domestically and from South-East Asia. The mixed-use income streams had strong appeal to both private and institutional investors.”

The mixed-use asset is on one title and has a total site area of 6385sqm. Located on Great Eastern Highway at Rivervale, 5km from the Perth CBD, it is close to the Burswood entertainment precinct and the newly opened Optus Stadium – ideally located for business, leisure and conference markets, while also benefiting from transport links. 

Both the hotel and office buildings opened in May 2017. The Aloft Perth has 224 rooms with high ceilings, floor-to-ceiling windows, long sofas and spacious bathrooms including rain showers. 

Both the hotel and office buildings opened in May 2017. The Aloft Perth has 224 rooms with high ceilings, floor-to-ceiling windows, long sofas and spacious bathrooms including rain showers.

Food and beverage facilities include a 24-hour “grab and go” pantry offering healthy snacks, W XYZ Bar for drinks and occasional live music, and Springs Kitchen – the hotel’s all-day-dining restaurant serving modern Australian cuisine. 

The hotel provides 593sqm of conferencing space with a 300sqm ballroom, including a 150sqm rooftop terrace area with 270-degree views of the Perth CBD and Swan River. Other facilities include a fitness centre and a heated outdoor swimming pool.

According to JLL, 25 Rowe is a rare non-CBD A-grade office building offering 10,569sqm of net lettable area, modern end-of-trip facilities and parking for 509 vehicles. The building is 81% leased to high-quality notable tenants and has a weighted average lease expiry (WALE) of 7.6 years.

Mr Nattrass said: “25 Rowe is Perth’s newest and best suburban A-grade office building and it provides the buyer with a diversified office income, separate to that from the Aloft Hotel, and with further potential for it to take advantage of the continued upturn in Perth’s office market. Investors were also attracted by the high quality of blue-chip tenants in the office component.”