Defying the tourism gloom: Singaporeans pay $40m for Devonport hotel
Singapore’s Fragrance Group, controlled by billionaire developer Koh Wee Meng, has defied the global tourism gloom, acquiring a new hotel in Devonport on Tasmania’s north-west coast for about $40 million.
Construction has only just started on the 187-room Devonport Waterfront Hotel, to be built on the site of the former Harris Scarfe store on Best Street, overlooking the Mersey River.
Completion is expected by the end of 2021, when the coronavirus and the COVID-19 disease should, hopefully, be a distant memory.
Tasmania had seven COVID-19 cases as of Wednesday (out of 454 nationally), according to the Department Health.
The waterfront hotel project is being undertaken by local construction group Fairbrother, which won a tender to develop it in 2017. A hotel operator has not yet been chosen.
The hotel is part of Devonport City Council’s Living City project, aimed at developing new retail, civic and hospitality venues to boost the local economy.
Near the hotel site, Fairbrother is also developing a $25 million multi-purpose civic building.
The Devonport Waterfront hotel was sold by Scott Newton and John Blacklow of Knight Frank.
Mr Newton said Fragrance was playing a “long-term game”.
“The north-west coast is undersupplied with quality accommodation offerings,” Mr Newton told The Australian Financial Review.
“This sale represents the most significant single tourism investment project for many years on Tasmania’s north-west coast.”
The Devonport acquisition grows Fragrance’s Tasmanian hotel development portfolio to four properties.
The group owns two hotel developments in Hobart, a 200-room hotel on Collins Street and another on Elizabeth Street and a third site on Davey Street, for which there are plans for an upmarket hotel.
In Melbourne, Fragrance is the developer of the curvaceous Premier Tower on the corner of Spencer and Bourke streets, across the road from Southern Cross Station. The 78-floor high rise, currently being built, has more than 800 apartments
Its founder, Koh Wee Meng is famed for building a series of budget hotels in Singapore’s red-light Geylang district.
His brother, Koh Wee Seng runs a separate listed Singaporean developer, Aspial, which (through its spun-off World Class Global business), is the developer of Australia 108, the Melbourne super-high rise tower nearing completion on Southbank.
The Devonport hotel deal follows the $50 million sale last year of the MACq 01 Hotel overlooking Constitution Dock.
A syndicate of wealthy investors including Tasmania’s Rockefeller, Farrell and Newton families bought the 4.5 star waterfront hotel at 18 Hunter Street, opposite Salamanca Market.
It opened in 2017 offering 114 guest rooms and suites as well as a high-end restaurant and a bar and shops.
