Wentworth Capital, alongside its backer and co-investor Sun Hung Kai & Co (SHK) has acquired the Darling Harbour Novotel & Ibis in Australia from Abu Dhabi Investment Corporation (ADIA) for A$390m.
Wentworth is acquiring the property in Sydney for its flagship Real Estate Private Equity Fund (WREPEF I) from ADIA at a 50% discount to estimated replacement cost and 23% discount to comparable hotel transaction pricing.
The two hotels, which comprise 525 rooms in the Novotel and 256 rooms in the Ibis on a 1.5ha site in the Pyrmont Peninsula, are currently operating at approximately 88% occupancy.
The A$350m WREPEF I fund is already 80% deployed, and it is understood that the next fund will likely be launched toward the end of the year.
Wentworth has a partnership with SHK and, together with its related company Mulpha, is co-investing alongside Wentworth to acquire Darling Habour Novotel & Ibis.
Hotel and leisure assets manager Mulpha, maintains an Australian portfolio including the InterContinental Sydney, InterContinental Sanctuary Cove and InterContinental Hayman Island in Queensland. The group is actively looking to expand its hotel portfolio in Australia and internationally.
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