Broadreach Capital Partners has paid around AUS $50 million ($42 million) for the Oasis Resort in Lake Street, Cairns, for its latest fund, BRCP II.
The fund, which closed last year with total capital commitments of $700 million, has bought the 314-room property from Australian finance, tourism and property group MFS. It intends to upgrade the asset while also adding holiday apartments on two adjoining sites.
It is the first hotel deal in Australia for the firm, which increased its reach into the hospitality sector in 2005 when Philip Maritz joined from luxury hotel and resort investor Maritz, Wolff and Company, a firm which he co-founded.
In Australia, Broadreach has hired former Jones Lang LaSalle broker Geordie Clark to help identify opportunities. Clark is based in Sydney.
Clark told The Australian newspaper there was no specific allocation for Australian purchases and that equity could be deployed in Europe or Asia.
Broadreach was formed in 2002 by a team from Spieker Properties, a US REIT. BRCP II is more than double the size of its previous fund. It targets multiple property types within western US markets as well as hotel and resort assets on a wider geographic basis.
Broadreach checks out Australian hotel
The Palo Alto-based firm has acquired its first hotel in Australia since closing a $700 million fund in the US last year.
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