Buyer Behind Closed Doors

Newcastle Herald

Thursday September 4, 2008

GREG WENDT BUSINESS EDITOR

MYSTERY surrounds the private family believed to have bought Newcastle's harbourfront hotel, the Crowne Plaza, for about $48 million.

Diversified property group Becton issued a statement to the Australian Stock Exchange yesterday to confirm it had exchanged contracts for the sale of the 175-room, 4.5-star hotel, which anchors Newcastle's dining and entertainment precinct on the Honeysuckle shore.

A spokesman for Becton said yesterday the buyer was an undisclosed private family company.

The new owner would be disclosed "in the fullness of time", the spokesman said.

Becton developed the award-winning hotel in 2003, using the asset to promote its first prospectus-based single-property syndicate.

Becton Newcastle Harbourfront Hotel Trust, which has about 450 investors, owns the property.

Becton said the $48.6 million sale price reflected an initial yield of 8 per cent and an annual return of 11 per cent to investors over seven years.

The contract of sale was subject to the approval of the trust's investors, who were expected to vote at a special meeting on Monday.

Jones Lang LaSalle Hotels executive vice-president (investment sales) Mark Durran, who negotiated the off-market deal on Becton's behalf, said the buyer was based in Sydney.

Mr Durran said that despite the credit crunch and perceived economic uncertainty the sale showed the confidence investors had in the hotel sector.

"In a competitive off-market bidding process, a local property investor outbid a number of domestic and offshore parties also seeking a presence in this growth market of Newcastle," he said.

The Crowne Plaza is operated by international hotel specialist InterContinental Hotels Group.

© 2008 Newcastle Herald

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