LIM, an independent subsidiary of real estate, financial and professional services giant Jones Lang LaSalle, purchased the Novotel on Collins hotel, the adjoining Australia on Collins shopping centre and the Monaghan Place car park for $204 million from Thakral Holdings.

Lawyers from Bakers' Australian offices advised in the transaction, completed on 17 June, with lead Sydney partner Roy Melik heading a team supported by partners Graeme Dickson, Amrit Macintyre and Tim O'Doherty, and senior associate Sebastian Busa. Blake Dawson acted for the vendor.

The five star hotel has 380 guest rooms, six meeting rooms, a business centre, restaurant and indoor pool, whilst the adjoining shopping centre has around 7, 800sqm of retail space accommodating around 80 tenants.

Melick said the purchase was a challenge because both parties required that it take place on a tight time frame.

The purchase price reflected a combined reversionary yield of 8.2 per cent with Accor, under the Novotel brand, continuing to run the hotel. The sale by Thakral will help fund the first stage of their long-planned redevelopment of their Wynyard property in Sydney into a mixed-use complex.

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