CapStra was engaged by the Asian Pacific Group (now the Deague Group) to provide strategic advice and transaction advisory services in relation to two of the group’s flagship hotels, The Olsen and The Cullen, located in South Yarra and Prahran, respectively. Our client owned and managed the hotels under the Art Series Hotels brand, and sought to divest the freehold interest in the real estate while maintaining operational control. CapStra was engaged to advise on the optimal lease structure and undertake an off-market, select tender, process for the sale and leaseback of the properties.
The appointment included analysis of market dynamics, providing advice in relation to optimal lease terms, and formulating a strategic market approach to fit the client’s objectives. CapStra undertook an off-market expression of interest campaign targeted at groups which would have an aligned strategic interest with Asian Pacific Group. CapStra was responsible for direct negotiations with prospective purchasers, management of the due diligence phase and finalisation of contractual arrangements.
The process achieved an above valuation sale to an offshore institutional manager.
Importantly, the transaction included a lease structure that afforded the client continued operational control and flexibility.