Singapore-based private equity real estate firm SC Capital Partners has bought the Rydges Darwin Airport Hotel and Resort in Australia from the Denwol Group for around $85 million, DEALSREETASIA has learnt.
This is in line with the trend which has real estate investment trusts (REITs), hospitality chains and PE funds from Asia, looking at Australia expansion by securing local assets.
The two properties were acquired by the PE firm’s Real Estate Capital Asia Partners (RECAP) IV Fund, which the company is targeting to close soon. Earlier this year, SC Capital had begun sounding out investors for its RECAP IV Fund and had planned to raise $750 million in equity towards this vehicle.
DEALSTREETASIA has learnt that the company’s latest investment vehicle has also been oversubscribed by over $500 million. The PE firm plans final closure of this fund at around $800 million, which is set to happen by the end of this calendar year; although this could not be verified independently, by this publication.
RECAP III was closed at $530 million despite being oversubscribed by more than $100 million against its $500 million hard cap target. Prior to that, it had raised $221 million as part of RECAP I in 2005, and $190 million in equity as part of RECAP II in 2010.
The Rydges Darwin Airport Hotel and Resort in Australia has 317 rooms, but has approvals to add another 11 rooms, and had been on the block since June. Darwin is also among the top cities in Australia in terms of revenue realised per hotel room in Australia.
Earlier this year, SC Capital Partners had bought a UK cruise liner and had committed about $35 million from its RECAP Fund III towards converting this ship into a luxury hotel and be placed in Yangon, the former capital of Myanmar. The PE firm has also invested over $70 million from RECAP Fund III across different projects in Myanmar.