University takes hit selling CBD hotels
The University of Tasmania has sold two Hobart hotels, four months after revealing a federal government cap on international students will hit its bottom line, with 500 fewer students enrolled this year alone.
Singapore’s Fragrance Group, which also owns UTAS’ Conservatorium of Music in Sandy Bay, is the buyer.
In the biggest deal, the seven level c1972 Allurity at 96 Bathurst Street is collecting close to $26 million, according to sources.
The college paid that – $25.85m – in March, 2018; the property was then trading as the MidCity, with 101 rooms.
It later invested millions on improvements – including a replacement sprinkler system.
Twenty one more suites were also created out of a top floor restaurant.
The hotel component is leased to Vision Hotels, which also rents a retail tenancy, trading as Area 52.
UTAS utilises part of the ground floor as a student office.
All up there is 2648 sqm of internal area.
With 41 car parks too, some undercover, the site spreads 1813 sqm, also facing Elizabeth and Criterion streets.
Fountainside Hotel
Meanwhile UTAS is selling Fragrance the Fountainside at 40 Brooker Avenue for a speculated $16m – a loss on the $18.76m it paid in December, 2018, before refurbishing.
With 2648 sqm over eight floors, the asset contains 50 suites, ground floor retail and 32 car parks – offered with short term tenancies.
The site spreads 1427 sqm abutting the Liverpool St roundabout (story continues below).
UTAS intended to use both properties for international student accommodation.
Instead following COVID it retained them as investments.
Elders Real Estate’s Matthew Wallace and Richard Steedman brokered the deal.
Colleague Scott Newton sold 96 Bathurst St.
Griffith University buys Treasury Building
Meanwhile Griffith University is readying to buy Brisbane’s Treasury Building for $67.5 million.
Vendor, The Star Entertainment Group, is expected to reap about $60.7m net, according to sources.
The seller also recently divested The Sheraton Mirage Gold Coast last year.
The Treasury Building, which previously accommodated the Treasury Casino, will be repurposed as a campus focused on business, information technology and law.
Some 7000 students are planned.
There should be about 200 staff.
In the immediate area is the Queen’s Wharf precinct and Brisbane’s newest CBD train station in 130 years.
Subscribe to our newsletter at the bottom of this page.
