Save articles for later
Add articles to your saved list and come back to them any time.
The NRL has vowed to invest a further $250 million in revenue-generating assets after purchasing a hotel adjacent to Cronulla’s home ground for an estimated $20 million.
The Australian Rugby League Commission announced on Tuesday the acquisition of the Quest Woolooware Bay Hotel, 14 months after it bought Brisbane’s Gambaro Hotel on Caxton Street for a reported $30 million.
There was no price disclosed for the latest investment, a strata hotel set over three floors with up to 71 rooms situated on Captain Cook Drive. However, market estimates value the hotel, which is scheduled to commence operations in late October, at $20 million.
“What became obviously clear during Covid was that we were on the cliff’s edge because we had no assets,” said ARLC chairman Peter V’landys.
“If ever there is another crisis like Covid, we need to be better prepared. Having an asset base is crucial. It’s not a nice-to-have, it’s a must-have.
“Strategically, [Woolooware] has a lot of benefits, it’s next to Shark Park. It’s a massive growing area, there’s not much accommodation in the area. The best thing about it is it has a long-term lease with Quest, so we don’t have to do anything, we let the building appreciate in value whilst receiving money off a blue-chip client.”
V’landys revealed that $300 million would be set aside to purchase assets after striking an agreement with the Rugby League Players’ Association.
The Australian Rugby League Commission (ARLC) has purchased the newly built Quest Woolooware Bay, Sydney.
“There is more to come,” V’landys said. “One of the gestures of the RLPA, which I appreciated, was they allowed us in the CBA to future-proof the game by getting $300 million worth of assets before they shared in any gains.
“I want to compliment the RLPA and the players for agreeing to that. That is one of the great concessions they provided during the negotiations. We are in partnership with the players in future-proofing the game.
“There are a number of other assets we have an eye on. We will build up $300 million, so if there is a good proposition, we will look at it. We did our due diligence on this one and Gambaro has already been a success and will only get better.”
CBRE’s Michael Simpson and Vasso Zographou brokered the Woolooware sale on behalf of property group Novm.
“This acquisition represents an astute purchase by the Australian Rugby League Commission as it continues to grow its property portfolio,” Simpson said.
“The hotel is adjacent to the Cronulla-Sutherland Sharks home ground PointsBet Stadium and is part of the $1 billion Woolooware Bay Town Centre mixed-use development. This was a demand driver in the sale, as well as the distance to Cronulla beach.”
Stream the NRL Premiership 2023 live and free on 9Now.
Sports news, results and expert commentary. Sign up for our Sport newsletter.
Most Viewed in Sport
From our partners
Source: Read Full Article