Marketing and Sales campaign underway for Sunnybank Star Motel and Apartments

Brisbane, 31 March 2014 – Sunnybank Star Motel and Apartments- a landmark property of Brisbane’s inner south, is to be offered to the market by way of an Expressions of Interest campaign. Targeting investors nationwide and abroad, the marketing and sales campaign is due to commence in the first week of April.

Wayne Bunz and Don Watson-Brown of CBRE Hotels have been appointed to sell the freehold interest in the property on behalf of the properties owners of 25 years.

Mr Bunz said the campaign was expected to generate significant interest, particularly from entities and individuals already associated in the domestic hotel and motel market.

“Brisbane is considered a secure and desirable investment market for properties of this type.” Mr. Bunz said.

“Without exception, the Sunnybank Star Motel and Apartments presents the best investment opportunity of its type to enter the Brisbane market in recent times. Centrally located, with historical profitability and additional value add opportunity, the property is certain to generate interest from a diverse base of investors and operators alike.”

The 3.5 star Sunnybank Star is prominently located within the south-east growth corridor of Brisbane, in the heart of the south east corners’ most culturally dynamic centre- Sunnybank. A hub to a thriving Asian community, the local area is renowned for its diverse range of industry- from technology and textiles to superb dining experiences with an oriental flair.

Situated on an enormous 8164sqm land parcel, the property offers 60 over sized guest rooms (sized between 28sqm – 78sqm), with a large number of modern two bedroom apartments and town houses. The property is located on a highly visible intersection with 12 lanes of traffic passing its door – yet has remarkably easy dual access off both main roads. Tucked within a close proximity to the M1, M3 and Logan motorways, Sunnybank Star Motel and Apartments is a convenient base for south east Queensland travelers, with the Brisbane CBD only 15 minutes away and Gold Coast less than 45 minutes’ drive.

All guest rooms are strata titled (in one line) with each townhouse featuring “exclusive use” courtyards. The property has numerous features including an oversized 322sqm Owners/ Managers residence, a commercial laundry on site, ample car parking space (many of which are undercover plus space for trucks, transporters and buses), with public transport and local amenities all within the immediate vicinity.

The property is currently operated under the Best Western banner by the property owners, with options for renewal open to potential purchasers, due to agreement terms expiring in 2014.

“Freehold going concern assets of this caliber are a rarity in the Brisbane market for a number of reasons, not the least being that they tend to become a generational investment – quite often held tightly due to their net worth, but also due to capital appreciation. As such we expect that non-traditional institutional buyers, as well as traditional hotel buyers will express interest in this offering. Of course, it is expected that investors with ties to the local Sunnybank community will also make up a strong segment of potential purchasers.” Mr. Watson-Brown said.

“The Sunnybank Star offering gives potential investors scope in relation to alternate and best use strategies for the property. As is, the current operational model offers lucrative returns on investment. An added attraction of this property is that it is offered as vacant possession, thus allowing for a rebranding or owner occupation. Repositioning and re-branding alternatives offer attractive potential yields through a variety of value add opportunities” Mr. Watson-Brown said.

In addition, Mr Watson-Brown said the property was expected to appeal to owner operators and strata savvy investors.

“The incoming owner could also look to sell-down strata-title and the individual apartments as an alternative exit strategy.”

“An additional opportunity for value upside is to incorporate food and beverage facilities into the property.  None currently exist but there is space for these facilities to be developed, with ample space including an existing commercial kitchen already in place.”

“Expressions of Interest” campaign closes Wednesday 7 May, 2014 at 12.00pm AEST (if not sold prior).

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 2012 revenue).  The Company has approximately 37,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 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. About CBRE Group, Inc.