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Bakers counts on Abacus Funds lease
BAKER & MCKENZIE’S Sydney office advised Abacus Funds Management Ltd on its lease of the five-star Carlton Auckland hotel to Rendezvous Hotels and Resorts International.“This is a…
Lawyers Weekly
BAKER & MCKENZIE’S Sydney office advised Abacus Funds Management Ltd on its lease of the five-star Carlton Auckland hotel to Rendezvous Hotels and Resorts International.
“A lease delivers a stable, and in this case a long-term, income stream, a feature that is key to any real estate investment. Hotels have been traditionally regarded as volatile investments but a lease to a creditworthy tenant provides comparable if not superior security and risk profile, as compared to other classes of commercial property,” she said.
“With appropriate provisions, hotel investments can produce better returns than conventional property investments particularly where the lessor has the ability to share in the upside of the underlying hotel business.”
The firm said the Rendezvous Auckland is one of the largest hotels in New Zealand. The listed Abacus Property Group specialises in property-based investments and management and currently has around $1.5 billion in assets under management.
Partner Graeme Dickson was also one of the lead partners on the deal.
