LaSalle Investment Management has entered into an agreement with Thakral Holdings Group to purchase the Novotel Melbourne and the adjoining retail shopping centre, Australia on Collins.
The purchase was on behalf of the LaSalle Asia Opportunity Fund III and the transaction was valued at $204 million.
The purchase price reflects a combined reversionary yield of 8.2 per cent, LaSalle said.
"We have been targeting a Melbourne hotel acquisition for two years and are delighted to have secured such a prized and well-established property," LaSalle Investment Management international director Andrew Heithersay said.
Accor will continue to manage the hotel under their Novotel brand, with a new hotel management deal struck with LaSalle.
LaSalle said it would continue to look for further acquisitions in Australia.
"LaSalle continues to build its presence in Australia and we have in excess of US$ 1 billion of dry powder to pursue investments, with a focus on value-add or development opportunities," Heithersay said.
Last year, LaSalle already bought the Sofitel Wentworth Sydney for $130 million, also on behalf of the LaSalle Asia Opportunity Fund III.
