In a trading update this week, Moelis Australia said the acquisition price is slightly above $100 million, excluding transaction costs, and remains subject to finalisation of sale and purchase agreements.
“It is intended to establish a single asset investment fund that will provide sophisticated investors the opportunity to invest in the Beach Hotel, Byron Bay,” the company said.
“Moelis Australia will manage this fund adding to its approximately $4.7 billion of assets currently under management. Moelis Australia has deep knowledge of the Australian hotel market. It manages ASX-listed Redcape Hotel Group and a single asset fund which owns the Grand Hotel, Rockdale NSW. It is intended that the Beach Hotel Fund will sit independent of the existing hotel funds.”
The Beach Hotel will be managed by Moelis Australia Hotel Management, with the intention to retain the majority of the existing management operations and venue staff.
“The Beach Hotel Byron Bay is an iconic Australian establishment located on irreplaceable real estate,” Moelis Australia Hotel Management CEO Dan Brady said.
“The acquisition of both freehold and operating interests will enable the required capital investment to further enhance what has made the hotel iconic – that is, a great community gathering place with a fun, sociable, friendly and safe hospitality offering delivered by an engage and passionate team of local hospitality professionals.”
Earlier this month the ASX-listed fund manager acquired a 50 per cent stake in South Australia’s Westfield Marion Shopping Centre for $670 million, the largest retail transaction ever recorded in the state.
Following the acquisition, Moelis Australia’s assets under management is $4.7 billion, up $1 billion since 31 December 2018.