Green Square, NSW
In November 2016, Folkestone entered into a 50/50 joint venture with Furnished Property to develop a 144 room hotel at Green Square, Sydney.
The site, at 18 O’Riordan Street, Alexandria, is located within the $13 billion, 278 hectare Green Square Urban Regeneration Area (‘GSURA’) and is strategically located approximately 100 metres from the Green Square Train Station. The Sydney Airport Domestic and International Terminals are two and three stops respectively to the south with Central Station, one stop to the north. Green Square is one of the most significant urban transformation programs under construction in Australia, revitalising the industrial edge of Sydney’s inner south into a vibrant global village. Green Square Town Centre, which is the centerpiece of the GSURA, is in close proximity to the proposed hotel.
Folkestone intends to launch the Folkestone Green Square Hotel Fund in late 2017, to raise circa $22.75 million of third party capital, which together with construction finance, will fund the development of the hotel on a fund-through basis reducing FLK and Furnished Property‘s funds employed to develop the hotel. The Fund will own the hotel long-term.
Construction is scheduled to commence after the Fund launch and the hotel is forecast to open in early 2019. Furnished Property will take a 10 year lease (with 8 x 5 year options), with a minimum base rent with annual increases, and a turnover rent. Furnished Property will operate the hotel under their VERIU Brand.
Source: City of Sydney
|Location||18 O’Riordan Street, Alexandria, NSW|
|Folkestone Interest (%)||50|
|JV Partner||Furnished Property|
|Construction Completed||Early 2019|