Singaporeans may be keen to buy unfinished 56-level Seascape tower to operate as hotel
Singaporean companies may be interested in buying Auckland’s abandoned 56-level Seascape tower and turning the residential block into a hotel.
Property sector sources said the hotel specialists want an Auckland site for a new 500-room hotel so the partly built $300 million tower, a block from the waterfront, could be it.
Buying Seascape would give the Singaporeans a massive head start because the superstructure is already up.
With 3.5 million tourists arriving annually, hotels are an extremely popular sector, fetching big premiums at sale point and achieving high occupancies.
Last year, Singapore’s HPL paid Precinct Properties $180m for the InterContinental Auckland which, at the time, set a record.
Singapore Exchange-listed Hotel Properties is an established owner, operator and developer of hotels, resorts and shopping centres in 17 countries with 41 hotels under various brands, including InterContinental Hotels Group.
Last year, Malaysia’s YTL paid $160m for Albert St’s Hotel Indigo.
In January, the Herald reported ASX-listed entertainment, hospitality and leisure company EVT had bought the QT Auckland hotel in the Viaduct Harbour from NZ Hotel Holdings for $87.5m.
A Hong Kong private equity fund bought Queenstown’s former Base Backpackers at 47-49 Shotover St for $31m.
The US$75 billion New York Stock Exchange-listed Brookfield Asset Management is buying two New Zealand hotels for $250 million, subject to Overseas Investment Office consent.
Ruban Kaneshamoorthy, Brookfield’s co-head of Australia real estate, said the company wanted to buy the 280-room Rydges Wellington and the 84-room Sofitel Queenstown.
Brookfield saw significant potential to enhance the two hotels’ performance, he said.
The first Radisson Red is on Queen St, after John and Michael Chow finished the $100m 322-room project in Auckland’s heart.
On Monday, Bayleys Real Estate chairman and managing director, Mike Bayley, announced a campaign to try to sell Seascape in conjunction with Knight Frank.
Last month, Seascape developer Shundi Customs was put into receivership by China Construction Bank.
Bayley said KordaMentha Real Estate had been appointed transaction adviser on the sale.
Calibre Partners’ Neale Jackson and Brendon Gibson are in charge of the building, which is partly clad.
Bayley said: “Seascape represents a unique control opportunity. The development has progressed beyond the most time-intensive stages, allowing future investment to focus on delivery, optimisation and value creation.”
Michael Kwok, Knight Frank Australia capital markets head, said it was an unusual opportunity.
“Assets of this calibre are tightly held. When they become available at a reset point, with the ability to acquire control and create value through execution ... the project will attract significant cross-border interest.”
Dan Dixon, Knight Frank Singapore-based Asia Pacific markets head, thinks Asian buyers could be keen.
Consultants Horwath HTL said national hotel occupancy reached 89% in February, bringing the market broadly back into line with pre-Covid levels.
Auckland five-star hotels led the market with 91% occupancy, highlighting strong demand at the top end of the city’s inventory.
Major events included the Royal Edinburgh Military Tattoo, SailGP and Pride Festival, which attracted large domestic audiences.
Chinese New Year was associated with almost double the number of Chinese room nights compared with last year, Horwath HTL’s report said.
Anne Gibson has been the Herald’s property editor for 26 years, written books and covered property extensively here and overseas.
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