Parnell Place

Metrics

Acquisition:$13,750,000 (December 2021)

Forecast Investor IRR:13.1%*

Forecast Income Return:5-15%*

Investment Type

Investment Type:Value-Add and Development

Location:Newcastle East, NSW

Sector:Accommodation, F&B and Residential Apartments

Investment Summary

  • ¬†Counter-cyclical acquisition of a 3-star accommodation property in Newcastle, approximately 200m from the beach. The property is a co-investment with development partner WINIM who have a demonstrated track record in hospitality and accommodation development projects.
  • The Business Plan is to undertake a major refurbishment of the hotel and develop rooftop residential apartments, taking advantage the irreplaceable height and ocean views of the existing property.
  • The property is currently leased by ASX-listed accommodation provider, Alloggio (ASX Code: ALO).
  • The property was acquired at a significant discount to replacement value during a long period of Covid-19 disruption to the accommodation sector, notwithstanding the strong long-term accommodation dynamics of the Newcastle market.

*At the time of IM publication