Parliament Square Hobart Sold For AUD338m In Tasmania’s Largest Ever Transaction
Main Photo: Parliament Square Hobart
Date: February 2022
Name: Parliament Square Hobart – The Tasman, A Luxury Collection Hotel, Marriott
Location: Hobart, Tasmania, Australia
Number of Keys: 152
Seller: Trawalla Group, Alan & Carol Schwartz’ family office
Buyer: Spirit Super – created through the merger of Tasplan and MTAA Super in early 2021
The Trawalla Group has sold Parliament Square Hobart to Tasmanian-based superannuation fund Spirit Super for $338,000,000 in the largest real estate deal ever concluded in the state.
Parliament Square was developed by Citta Property Group and features a mixed-use asset comprising office, hotel, retail and car parking components completed in late 2021.
The 16,300 sqm FJMT designed office component and associated car bays is leased to the Tasmanian State Government on multiple leases until 2037 and is one of the finest architectural examples in the Hobart CBD. The Hotel component remained under construction for the entirety of the sales campaign and was completed and subsequently opened in December 2021.
Designed by Joseph Pang Design, the 152 room hotel blends a series of old historic buildings with a new, modern structure and The Tasman is the first ‘Luxury Collection’ hotel to be opened in Australia by the Marriott Group. The hotel was sold subject to a 15 year management agreement. The sale also included some 630 sqm of retail tenancies which are located within a central Plaza on site.
Despite the campaign being undertaken at the height of the Covid-19 pandemic with the majority of states in lockdown, the campaign program recorded exceptionally strong interest from domestic and international purchasers with four parties invited to participate in a second and final round of bidding. Only the smallest of margins separated the top three bidders which reinforces the strength of interest for high quality, long leased assets.
Industry observers say, “The quality of this asset and the government tenancy covenant, providing a WALE of 16 years, will attract widespread interest from some of the largest local and international players in the market. Apart from the high quality improvements, the project sits on a very large site of some 7,700 sqm. At the time that interest in the Tasman hotel was underpinned by the strength of the Tasmanian tourism market, with the Tasman Hotel positioned to become one of the best hotels in Australia.
Alan and his wife Carol Schwartz established the Trawalla Foundation in 2004 as a vehicle for the family’s philanthropic activities. In recognition of his contribution to community and business, Alan was awarded a Centenary Medal in 2003, followed by an Order of Australia (AM) in 2007.
Price: AUS $338,000,000 – The Hotel was AUS $112m
Price per Key: AUS $736,842
THPT Comment: According to Tourism Trader, only the smallest of margins separated the top three bidders which reinforces the strength of interest for high quality, long leased assets.
First Seen: Hotel Conversation
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