Australian real estate developer Shakespeare Property Group has acquired the heritage-listed Woolstore 1888 hotel in Darling Harbour, Sydney, for A$55m ($35.3m).

This 90-room hotel is part of a series of transactions in Sydney’s hospitality sector, following the recent $215m sale of the InterContinental Hotel in Double Bay.

The Woolstore 1888 hotel is a five-level sandstone and brick building, featuring guest rooms spread across four floors on a 626m² site.

This property is known for its historical significance and unique industrial design, which includes high ceilings, large period windows, and a seven-storey atrium.

Previously owned by Girish Jhunjhnuwala-owned boutique chain Ovolo, the hotel was purchased for around A$33m in 2014 from 8Hotels, a company led by Paul Fischmann.

Shakespeare Property Group hospitality assets and investments vice president Richard Saab said: “The Woolstore 1888 is a stunning hotel asset which is in great condition, in a great location, and doesn’t require major capital expenditure for us to realise its full potential.”

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“We think there is scope to improve the asset. But we also think this property speaks for itself, as one of Sydney’s finest heritage hotels.”

Shakespeare Property Group is currently in discussions with a new hotel operator to take over the management of the property.

An official announcement is expected in the coming weeks.

The group will finance the acquisition through equity raised from wholesale investors via a single-asset unlisted trust, named the Shakespeare 1888 Trust.

The Woolstore 1888 hotel will complement Shakespeare Property Group’s diverse portfolio, which includes the Pullman Cairns International hotel in North Queensland; other hotel properties; office buildings in Sydney, Brisbane, and Melbourne; and residential projects on Melbourne’s St Kilda Road.

CBRE agents Michael Simpson, Wayne Bunz, Steve Carroll, and Hayley Manvell facilitated the sale of the hotel.

The property is situated adjacent to Mirvac’s A$2bn redevelopment of the former Harbourside Shopping Centre.

This transaction marks the second hotel sale for Ovolo in less than a year, with the group having sold The Inchcolm by Ovolo in Brisbane to Invictus Developments for A$25m last August.

Ovolo Hotels CEO Dave Baswal said: “This sale will allow us to focus on new markets across the Asia Pacific with high growth opportunities aligned to the strategic direction of the greater group whilst diversifying our portfolio.”