CBRE Hotels and Pro-invest Group are pleased to announce the successful sale of Brisbane Mercure and Ibis Hotels

Brisbane, 15 January 2018 – The 194-room Brisbane Mercure Hotel and 218-room Brisbane Ibis Hotel has sold for a combined $77 million from Singaporean hospitality trust, CDL. CBRE Hotels and Pro-invest Group acted as advisors on this transaction.

In an announcement to the Singaporean Stock Exchange Mr Vincent Yeo, CDL CEO said: "In line with our proactive asset management strategy, the divestment of Mercure Brisbane and Ibis Brisbane allows us to realise the underlying value of these assets and create further debt headroom to continue to actively pursue acquisitions in other markets with stronger growth trajectory, so as to enhance returns for our Stapled Security holders."

The hotels have been purchased by German asset manager Commerz Real in their first major Australian hotel acquisition. The group owns more than $30 billion in real estate investments. "Hotel real estate especially in top locations is, because of its attractive risk-return profile, in ever greater demand from our institutional investors," explains Johannes Anschott, member of the board of managing directors of Commerz Real.

Pro-invest Group’ CEO, Ronald Stephen Barrott said, "The acquisition by Commerz Real represents a unique counter-cyclical opportunity to secure two hotel assets in a prime Brisbane CBD waterfront location. The hotels are supported by a triple net lease to Accor until 2021. Although the Brisbane market has recently been adversely impacted by significant new additions to room supply, it is now showing signs of improvement. Growth in room night demand remains strong in Brisbane and we believe that these hotels are well positioned to benefit from nearby substantial infrastructure investments such as Queen’s Wharf."