C2 Capital makes a move in Gladstone hotel market

Brisbane, 1 November 2018 – Rydges Gladstone has been purchased by Melbourne based fund manager C2 Capital, acquiring its first hotel asset for its hospitality fund.

The sale was handled by CBRE Hotels' agents Paul Fraser and Hayley Manvell.

The fund is mandated to acquire carefully considered acquisitions to satisfy the significant demand from investors wishing to achieve an above market yield in this asset class.

CBRE Hotels' Director Mr Paul Fraser said, “The sale is an example of an astute buyer coming in and looking at the counter cyclical opportunity in the region that has great bones and will flourish with a renovation in the larger macro-economic resurgence."

CBRE Hotels’ Senior Negotiator Ms Hayley Manvell said, “We are witnessing renewed interest from investors for Regional Queensland properties, which signifies a perception that these markets have bottomed and are in a recovery phase."

On behalf of the purchaser, C2 Capital, the deal was negotiated by commercial real estate and hospitality specialist Kurt Braune from KBCG. Mr Braune said, “This purchase was a very strategic acquisition for C2 Capital, as the local economy slowly recovers from the post mining boom."

“The gradual resurgence of coal exports and other new processing projects including the recently announced $308M high tech abattoir by Agri Corp, give us confidence in the region and ultimately the ongoing viability of the hospitality sector,” he added.

Sunil Kumar director of C2 Capital said, “We are very pleased with this acquisition and excited with our move into sustainable, affordable luxury hospitality projects. We have great faith in the steady growth in the region and are excited with the opportunity to be part of the local business community.”

“As part of the turnaround strategy for the hotel, we will be undertaking a significant upgrade to enhance the guest experience as the property is tired and in need of a makeover. There will also be additional facilities in the upgrade including a gym, co-working areas and a food and beverage offering that will cater to health-conscious guests,” says Mr Braune added.

Upgrades to this property will start early 2019 with C2 Capital currently in negotiation for acquiring a further four hotels in the next 12 months and developing new affordable luxury hotels.

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates) and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.