Len Buckeridge’s empire carve-up continues

The carve-up of late construction tycoon Len Buckeridge’s property empire is shifting up a gear.

Singapore’s Hiap Hoe has bought the Aloft Perth hotel.

The carve-up of late construction tycoon Len Buckeridge’s property empire is shifting up a gear, with the group selling a Perth hotel for $100 million and the focus now on the broader business empire.

In the latest play, Singapore’s Hiap Hoe has bought his company’s Aloft Perth hotel, and an office complex, for $100m, and Malaysia’s YTL is closing in on the purchase of Buckeridge’s Westin Perth for about $200m.

BGC Group director Sam Buckeridge said the board was pleased with the sale of the 224-room Aloft and the adjoining leased office building, 25 Rowe.

“The sale is a testament to the quality of the Aloft development completed by BGC Construction last year, and the Marriott team which continues to deliver an outstanding experience for guests,” he said.

BGC Group said the sale of the five-star Westin Perth was “progressing well”.

“The constrained supply of quality, contemporary hotel properties in Perth’s rising market continues and has seen strong interest for the Westin Hotel,” Mr Buckeridge said.

Rather than pocketing the sale proceeds, Mr Buckeridge said the Aloft sale would free up capital for redeployment.

The hotels and office complex are being sold through JLL Hotels & Hospitality’s Mark Durran and JLL’s John William and Tom Nattrass.

Private equity and industry rivals are now positioning for the forthcoming offer of Buckeridge Group’s building materials and construction units.

The company last month confirmed it was negotiating selling the business, either in one line or via a breakup, but has refused to comment on whether Wesfarmers was interested.

Some of the units are likely to appeal to separate buyers as BCG is both the largest home builder in Western Australia and the country’s top private mining and construction company.

The overall Buckeridge estate is worth an estimated $2.5bn.

BGC’s operations had been under a cloud since the tycoon’s death in 2014, with litigation having split one of Australia’s wealthiest families.

Hiap Hoe already owns the Marriott-operated Four Points by Sheraton Melbourne and another office complex in Perth, as well as the four-star Aloft Hotel in Rivervale. The company said it would boost income streams from the 10,600sq m A-Grade office building and 500-bay carpark it picked up in the deal.