Resource boom attracting interest for regional accommodation assets

​Brisbane, 22 June 2012 - The resource boom is strengthening acquisition interest for Queensland regional accommodation assets according to a new CBRE Hotels market review.

CBRE Hotels Negotiator Tom Gibson said the firm was increasingly dealing with interest from both traditional and non-traditional investors looking to acquire accommodation assets with exposure to the mining sector.

“With the continued local and international investment into new mines and 66 new projects scheduled for the next eight years in central Queensland, the demand for accommodation assets in this region is set to continue,” Mr Gibson said.

Recent sales involving accommodation assets with resource sector exposure include the Leichhardt Hotel Development site in Mackay, the Grand Mercure Apartments in Townsville and the Grand Hotel in Gladstone.

 “Given the high amount of interest generated from these marketing campaigns, accommodation assets with exposure to the mining sector are highly sought after when they become available.”

“Towns surrounding Emerald, Moranbah, Mackay, Gladstone and more recently Rockhampton, are the real hotspots for buyers, in particular private groups that have raised equity to develop mining camps.”

These smaller, resource based markets are benefitting from the increase in the construction phases of major resource and infrastructure projects which includes over 50 projects currently underway in the Bowen Basin.

 “Obviously build costs are quite high in these regions; however developers are becoming more creative to alleviate build costs by looking to modular accommodation designs.”

“There has been a significant increase in the establishment of modular motels and mining villages in regional towns, especially more recently with several new mining projects expected to commence within the next six months such as the Bandana Mine just east of Blackwater.”

The construction of these new accommodation options will alleviate the amount of fly-in/fly-out commitments for mining corporations and prove to be a cheaper alternative for housing workers.

“This growth is forecast to continue well into the future with the opening of new mines set to drive growth into neighbouring towns,” Mr Gibson added.

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 firm (in terms of 2011 revenue).  The Company has approximately 34,000 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 Web site at www.cbre.com.