CBRE Aids Fu Wah International Group in Key Acquisition
July 1, 2014, Beijing – Recently, China’s Fu Wah International Group had successfully purchased Melbourne’s famed Park Hyatt Hotel. On 30th June 2014, an official handover ceremony was held at Park Hyatt Hotel between the Government of Singapore Investment Corp (GIC) and Fu Wah International Group.
The transactions from this acquisition had totaled up to 130 million Australian Dollars. With this purchase, Fu Wah has thus made its first significant foray into the Australian property market, while also initiating its international presence into the real estate industry. Wayne Bunz, Senior Director of CBRE Hotels, Australia, and Anton Eilers, Executive Director Global Capital Markets – China brokered the off-market transaction between Singapore’s GIC and Fu Wah International Group.
Developed in 1999 by Lustig & Moar at a cost of $150 million, the five-star Park Hyatt is widely regarded as one of Melbourne’s leading hotels.
The purchase continues a wave of recent Chinese investment into the Australian property market, with much of the recent activity having centred on investment and development opportunities in Melbourne.
Established in 1988, Fu Wah International Group, a Hong Kong-based company, is mainly engaged in real estate development, high-end commercial property projects, culture, arts, and investment matters. A key highlight of projects handled by the group includes the construction of Beijing’s JingBao Street, an internationally commercialized street located in the Beijing centre area. The street houses various high-end properties that have been constructed by Fu Wah, such as the Regent Beijing Hotel, Lee Garden Service Apartments. Furthermore, Fu Wah has also built the world-famous China Red Sandalwood Museum.
Fu Wah President Mr. Chiu Yung said: “Fu Wah is pleased to make this investment into one of the landmark hotel properties in Melbourne. The acquisition adds to our ongoing investment into premier hotel and service apartment properties in China and the wider region.”
Mr. Bunz said Melbourne was considered a priority destination for foreign capital into Australia.
The city recorded the strongest revenue per available room growth of any of the Australian CBD markets during 2013.
“The property is superbly located on the edge of the CBD, close to the Southbank restaurant and casino precinct, the Melbourne Cricket Ground and the Melbourne Park Tennis and Function Centre. It provided Fu Wah the opportunity to secure a strongly performing hotel in a tightly held market with solid underlying fundamentals,” Mr. Bunz said.
Mr Eilers commented, “The stability of the Australian hotel market and the appeal of Melbourne as an investment destination were key attractions for Fu Wah as was the trophy status of the Park Hyatt, one of the city’s premier five-star hotels.”
The sale involves both the 240 room Park Hyatt hotel and an adjoining commercial car park.
The hotel incorporates the award winning Radii Restaurant & Bar, several lounges, a ballroom, business centre and six additional function rooms. Other facilities include the Park Club Health & Day Spa, a 25 metre indoor pool and an outdoor tennis court.
About CBRE Group, Inc.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
