Event meets $250 million divestment goal following sale of Rydges North Sydney

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The sale of the hotel comes just three months after Ms Hastings said the group would keep the property operating as a hotel after previously trying to sell it as a residential development.

Event is also selling its Rydges Rotorua in New Zealand. “Other potential disposals of non-core properties are still under review,” the company said.

The acquisition is the second in Australia for new owners High Street Holdings, after paying $15.8 million for the 108-room Richmont Hotel in Brisbane last year. HSH relaunched the hotel as Kennigo Hotel Brisbane in August and appointed Event to manage it under its Independent Collection brand.

The Singaporeans will refurbish the North Sydney hotel after the deal closes in late July. The hotel occupies a 2549m² site at 54 McLaren Street in a prime location in North Sydney’s CBD adjacent to the under construction Victoria Cross underground station.

A spokesman for Event said it was unable to say at this stage whether it would continue operating the hotel as a Rydges resettlement.

The sale of Rydges North Sydney was brokered by CBRE Hotels’ Wayne Bunz and Michael Simpson. This comes amid a major thaw in the hotel investment market as occupancy rates rise across the country and business travel resumes.

HSH also owns the Inn Hotel Nagoya in Japan and two boutique hotels in Singapore.

The company is one of several private investment vehicles owned by the Jaleel Family Trust, founded by Mohamed Abdul Jaleel.

The family started in 1977 with a small supermarket just behind City Hall in Singapore before expanding across Singapore into purpose built staff accommodation, logistics and other real estate sectors.

Its Mini Environment Service Group owns and manages approximately 25,000 worker dormitories in Singapore.

David Marriott, partner at High Street Holdings, said Jaleel Family Office is pursuing additional Australian investment opportunities as part of the ongoing diversification of its global portfolio.

“The transparency of the Australian market and the strength of domestic demand, which accounts for approximately 80 percent of hotel visits, continues to be a key draw given the volatility of international tourism in recent years,” said Mr. Marriott.

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