Aligned FM buys Melbourne's Tune Hotel for $52m

Melbourne, 12 February 2016 – Sydney fund manager Aligned has made its second hotel acquisition of the year, and its first in Melbourne, after snapping up the 225-room Tune budget hotel on the city fringe for $52 million.

Aligned Funds Management bought the hotel at 606 Swanston Street, across the road from the University of Melbourne, in Carlton, from TP Real Estate Holdings, a joint venture between Malaysian tycoon Tony Fernandes – owner of budget airline Air Asia – and Singapore-listed Plato Capital.

In January, Aligned FM, run by former Eureka fund manager Glen Boultwood and former InterContinental Hotels Group executive Victoria Clent, acquired the TRYP by Wyndham street art hotel in Brisbane's Fortitude Valley for more than $20 million from developer Jay McPhee.

Mr Boultwood and Ms Clent confirmed the acquisition, but declined to comment further.

The sale was brokered by Wayne Bunz and Scott Callow of CBRE Hotels, who also negotiated the sale of the TRYP Hotel.

Mr Bunz, who is forecasting another record year for hotel deals in 2016 as occupancy and room rates continue to rise, said the Tune Hotel sale was a sign of confidence in the Melbourne hotel market.

"We've already negotiated $200 million worth of hotel deals this year, with more in the pipeline," he said.

The hotel, the first and only Tune Hotel in Australia, opened just over three years ago and cost about $34 million to develop. It will continue to be managed by Tune Hotels.

The latest acquisition takes Aligned FM's hotel portfolio to six hotels owned on behalf of institutional and high net worth investors. The fund manager was established in mid-2014 with a $250 million mandate to invest in hotels and retail assets.

Its other hotels are the Quest apartment hotel in Rockingham, two Chifley hotels in Wollongong and Penrith, and the Ibis Budget hotel at Perth Airport.

About CBRE Group, Inc.

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