JLL Hotels & Hospitality Group and Debt Advisory today announced that it has arranged the acquisition financing of Four Points by Sheraton Sydney, Central Park on behalf of hospitality, travel and leisure specialist investor KSL Capital Partners (“KSL”). The 297-key property is located in the Central Park mixed-used development with close proximity to a number of major universities, Chinatown, Surry Hills and public infrastructure. The transaction reinforces the confidence of investors and financiers in the recovery of the hotel market in major economic hubs across Australia. KSL had acquired the property in Q3 2021 through JLL’s Mark Durran and Nick Roche.
The acquisition financing comprised senior and junior tranches backed by one international lender and an Australian based credit provider, emphasising the range of debt capital available in the market as traditional lenders have potentially reduced enthusiasm for the sector.
“JLL’s well defined and competitively orchestrated process provided KSL with a range of possible debt solutions for the transaction. We did see that traditional lenders were less aggressive on the transaction than would have likely been the case in pre-COVID times, but we had a good depth of debt capital seeking to be deployed into the opportunity. As the tourism sector see’s continued recovery, we anticipate a recycling of capital in the hotel debt space with traditional lenders being replaced by overseas and non-bank debt providers,” commented Adam Bury, Executive Vice President, Investment Sales & Head of Hotel Debt Advisory, Australasia, JLL Hotels & Hospitality Group.
The property was sold subject to a management agreement with Marriott and emphasises continued confidence in the Australia market following KSL’s investment into Baillie Lodges.
JLL’s Head of Debt Advisory Australasia, Matt Duncan commented, “JLL is proud to have raised the acquisition financing on behalf of KSL for the Four Points by Sheraton Sydney. Despite the challenging hotel trading conditions created by the COVID pandemic, with international and domestic state borders having been closed for extended periods and occupancy demands temporarily challenged. We saw significant demand from a range of domestic and foreign credit providers for this opportunity, emphasizing the medium to long-term belief that the majority of lenders have in the market.”
During the past 12 months JLL Hotels & Hospitality group transacted 94 assets across Australia and New Zealand with a total value in excess of AUD$1.6b, whilst the Australasia debt advisory business arranged over AUD$1.7b of financing across all property sectors.
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Contact: Adam Bury
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