The Emperor’s Crown Hostel in Perth’s CBD has sold for $6.5 million.
The two-storey hostel at 85 Stirling Street has 29 dormitory rooms catering for 103 guests and a commercial tenancy leased to a cafe, with a building area of 1,410sq m on a 1,052sq m site.
It sits between James and Aberdeen Street, adjoining ‘The Boulevard’ and opposite ‘Campus Perth’ – both of which are student accommodation buildings.
Zoned ‘City Centre’ under the City of Perth Town Planning Scheme – which is undergoing a revision to increase the plot ratio in the precinct – the site is deemed to have substantial redevelopment potential.
The buyer was an offshore investor from Singapore in a deal negotiated by Jonathan Wong and Tony Delich of Knight Frank following a Private Treaty campaign.
Mr Wong said there had been solid demand during the sales campaign for The Emperor’s Crown Hostel.
“The property sale was inclusive of the hostel business, which has been operating since 2004, so we had a range of buyers looking at the opportunity for various reasons, including investors, owner operators and developers,” he said.
“The holding income from the property was attractive, as well as the future development potential of the site and the inner-city location.
“85 Stirling Street is in close proximity to the Perth Train Station, Perth Bus Port, Malls and Northbridge entertainment precinct.”
Mr Delich said investors were looking for value-add opportunities in solid locations plus hostels/backpacker facilities are scarce, rarely come for sale and enjoy nearly 100% occupancy.
“This property offered a secure investment due to its current income streams but there is opportunity for a redevelopment in the future,” he said.
“We are seeing many buyers take a long-term view when making purchases, and looking for value-add opportunities.
“The Perth CBD is a strong investment location, being close to a range of amenity and transport options.”
Related Articles
