CBRE Hotels Facilitates Major Strata Amalgamation Deal for Sydney's Potts Point Central Apartment Hotel

CBRE Hotels Helps Close Large Strata Amalgamation Deal for Potts Point Central Apartment Hotel in Sydney

BGO Strategic Capital Partners and Hotel Capital Partners have acquired the Potts Point Central Apartment Hotel in Sydney for $31.5 million. This transaction, facilitated by CBRE Hotels, involves 73 separate lots and stands as the most significant strata amalgamation deal in Australia since the pandemic.

In a notable development within the Australian hotel sector, the Potts Point Central Apartment Hotel in Sydney has been purchased for $31.5 million. The acquisition was completed by BGO Strategic Capital Partners, a global multi-manager, and Hotel Capital Partners, headquartered in Sydney. The deal, negotiated by CBRE Hotels, represents the largest strata amalgamation agreement in the country since the pandemic began.
The sale of the hotel, which features 70 serviced apartments, a ground-level food and beverage establishment, and a rooftop public amenity offering expansive views of Sydney’s CBD, was finalized this week. The transaction involved 73 individual lots, making it a significant deal in the strata amalgamation sector.
The Potts Point Central Apartment Hotel, a 4-star property, provides apartments averaging 23 square meters in size. The purchased property is recognized for its art deco design and is situated in one of Sydney’s most desirable areas.
Under the new ownership, plans are in place to transform the hotel into co-living accommodations. UKO, Australia’s largest co-living operator, will oversee the management of the proposed co-living facility, potentially introducing a fresh dynamic to the local real estate market.
This transaction signifies a substantial investment in the Australian hotel industry, highlighting its resilience amid ongoing global uncertainties. The sale process attracted significant attention, with over 150 inquiries and 15 bids received from various parties, including developers, local high-net-worth individuals, and owner-operators.