Melbourne’s Park Hyatt provides Australian foothold for Fu Wah International Group

Melbourne, 23 January 2014 – China’s Fu Wah International Group has made its first significant foray into the Australian property market with the purchase of Melbourne’s landmark Park Hyatt hotel.

Wayne Bunz, Senior Director of CBRE Hotels, Australia, and Anton Eilers, Executive Director of CBRE China brokered the off-market transaction between Singapore’s GIC and Fu Wah International Group.

Developed in 1999 by Lustig & Moar at a cost of $150 million, the five-star Park Hyatt is widely regarded as one of Melbourne’s leading hotels.

The purchase continues a wave of recent Chinese investment into the Australian property market, with much of the recent activity having centred on investment and development opportunities in Melbourne.

Established in 1988, Hong Kong-based Fu Wah is engaged in real estate development, hospitality and art & culture services. The group’s existing property portfolio includes the Regent Beijing hotel, the Park Plaza Wangfujing hotel, the Sandalwood Beijing Marriott Executive Apartments, Lee Garden Service Apartments as well as China Red Sandalwood Museum and the Chang An club in Beijing.

Fu Wah President Mr. Chiu Yung said: “Fu Wah is pleased to make this investment into one of the landmark hotel properties in Melbourne. The acquisition adds to our ongoing investment into premier hotel and service apartment properties in China and the wider region.”

Mr.  Bunz said Melbourne was considered a priority destination for foreign capital into Australia.

The city recorded the strongest revenue per available room growth of any of the Australian CBD markets during 2013.

 “The property is superbly located on the edge of the CBD, close to the Southbank restaurant and casino precinct, the Melbourne Cricket Ground and the Melbourne Park Tennis and Function Centre. It provided Fu Wah the opportunity to secure a strongly performing hotel in a tightly held market with solid underlying fundamentals,” Mr. Bunz said.

Mr. Eilers commented, “The stability of the Australian hotel market and the appeal of Melbourne as an investment destination were key attractions for Fu Wah as was the trophy status of the Park Hyatt, one of the city’s premier five-star hotels.”

The sale involves both the 240 room Park Hyatt hotel and an adjoining commercial car park.

The hotel incorporates the award winning Radii Restaurant & Bar, several lounges, a ballroom, business centre and six additional function rooms. Other facilities include the Park Club Health & Day Spa, a 25 metre indoor pool and an outdoor tennis court.

About CBRE Group, Inc.

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