![Abode hotel in Woden has sold for $41.5 million. Picture supplied Abode hotel in Woden has sold for $41.5 million. Picture supplied](/images/transform/v1/crop/frm/146508744/6d00be21-ae93-428b-bfc7-624e288d00bd.jpg/r0_0_6307_3546_w1200_h678_fmax.jpg)
The 11-storey Abode hotel in Woden has sold to a national funds management group, falling short of initial price expectations.
Subscribe now for unlimited access.
or signup to continue reading
The seller, Shakespeare Property Group, was hoping to fetch about $50 million for the hotel when it went up for sale in January.
Serene Capital purchased the property at 10 Bowes Street, Phillip $41.5 million following an expression of interest campaign.
It will continue operating as an Abode hotel, which falls under Geocon's Iconic Hotels division.
Geocon converted the building from a 1970s office block into a 152-room hotel, which opened in 2013. Alongside apartment-style rooms, the property includes three conference rooms and a restaurant.
Geocon later sold the hotel to Shakespeare Property Group.
![The hotel was converted from a 1970s office block and opened in 2013. Picture supplied The hotel was converted from a 1970s office block and opened in 2013. Picture supplied](/images/transform/v1/crop/frm/146508744/7388825f-9ac7-4ff5-a4b8-876515ade769.jpg/r0_273_5859_3567_w1200_h678_fmax.jpg)
Serene Capital has more than $750 million worth of hotels and offices under management in Australia, including the Adina hotel in Dickson.
The group had purchased a property for five years due to a "lack of perceived value", Serene Capital CEO and co-founder Glen Boultwood said.
He said the group recently reopened its Serene Capital Hotel Fund 1, which the Abode hotel will sit under, to new investors after raising $20 million earlier in the year.
"We are now starting to see hotel yields and value back at levels when we started the fund back in 2014," he said.
MORE PROPERTY NEWS:
The Woden hotel was an attractive purchase due its location and long-term lease, Mr Boultwood said.
"The hotel's defensive demand drivers surrounding government, health, education and infrastructure, combined with the lease income security and high yield add to the defensive nature of the fund's income stream," he said.
Shakespeare Property Group vice president, hospitality assets and investments, Richard Saab said the capital from the sale would be directed to other investment opportunities.
Michael Simpson, Vasso Zographou and Tristan Cotchett of commercial agency CBRE negotiated the sale.
We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.