The COVID-19 pandemic and its associated restrictions have rocked industries across Australia. Real estate and property development have been some of the larger areas to be affected. Recent deals in Melbourne and other areas point to this reaching a turning point, however.
While both industries have been picking up steam in recent months, this was slow going at the start. It now looks as though property development and acquisition is exploding across the country, particularly in the hospitality issues. Hotels, in particular, seem to have reached a two-decade high.
At least, that appears to be the case with transactional activity. That’s despite trading conditions that can be relatively challenging. The recent sale of the Edwardes Lake Hotel in Reservoir’s freehold interest, for example, has shown this. Sold for $28 million, the acquisition came less than a day before its expression-of-interest campaign ended.
Purchased by Hotel Property Investments, the hotel came with an investment-grade 60-year lease. Reports also highlight that the Edwardes Lake Hotel boasted an annual income of $1.4 million.