�The sale price of $112 million (A$206.5 million) is the largest amount ever paid for an Australian hotel, and the deal is one of the largest property transactions of any type in Australia this year,� says Robert Stiles, Sonnenblick-Goldman�s San Francisco-based managing director and principal who oversees the firm's Asian practice. The deal surpassed the Westin Sydney sale, which was also purchased by GIC RE earlier this year.

The 36-story ANA is the largest five-star hotel in Australia, with 561 rooms, most of which have harbor views. The hotel has over 20,000 square feet of function space (including a 7,200-square foot grand ballroom that accommodates 900 people), and award-winning restaurants, retail shops and an underground car park. 

Situated in the historic �Rocks� precinct within the central business district, the ANA boasts a unique harbor-side location with a sweeping vista of the Sydney Harbour and its famous landmarks, the Opera House and Sydney Harbour Bridge. 
To ensure a smooth transition, the property will continue to bear the ANA brand and remain a member of ANA Hotels through a license agreement that includes a sales referral system.

The ANA transaction marks the latest purchase of a five-star hotel by GIC RE, which already owns other substantial assets in the Sydney area. In addition to the recently acquired Westin Sydney, they include an office tower at 175 Liverpool Street, the International Broadcasting Centre and a majority share of the Queen Victoria Building, through Ipoh Ltd. 

Dr. Seek Ngee Huat, president of GIC RE says, �We are very pleased to secure the ANA Hotel at this time and to have reached a mutually beneficial arrangement, in keeping the use of the ANA brand through a license agreement, until such time as we engage a new five-star hotel operator.�

Dr. Huat adds, �The purchase of the ANA Harbour Grand is a vote of confidence in the Australian hospitality market. This acquisition, together with the Westin Sydney, is a strong statement of our investment strategy to build up a portfolio of core hotel assets in the Asia-Pacific region. We continue to look for opportunities to invest or co-invest with like-minded partners in the hospitality real estate sector in the Asia Pacific region.� 

Commenting on the deal, Sydney-based Sonnenblick-Goldman managing director, John Smith, says, �The hotel drew strong interest and bids above market expectations from a broad cross section of Australian and international buyers. Investors were attracted by the hotel�s outstanding features and facilities, its strong trading performance and the vacant possession opportunity.

�Whilst some buyer interest initially focused on the possibility of a conversion of the hotel to apartments, the ANA�s potential for further profit growth as the Sydney hotel market begins to turn around during the next two years, delivered a compelling case for its continued operation as a five-star hotel. It is an astute purchase by GIC,� Mr. Smith continues. 

According to New York based managing director and principal Mark Gordon, �The global interest in this asset is yet another sign of the depth of investment interest for quality hotel assets in irreplaceable locations.�  With the closing of this transaction, Gordon notes that Sonnenblick-Goldman's International Lodging & Leisure Group is on track to complete more than $1.5 billion of hotel capital transactions in 2001-2002.

Hotel consultants Andersen Global Management Directions Japan and Horwath Asia Pacific Sydney were also advisers to ANA and managed the vendor due diligence process, in conjunction with lawyers Blake Dawson Waldron. 
GIC RE is a pre-eminent global real estate investment manager.  The firm manages a multi-billion dollar portfolio of direct and indirect property investments worldwide.  GIC RE is the real estate investment company of GIC, which manages the foreign reserves of Singapore.

Sonnenblick-Goldman Company is a leading independent real estate investment banking firm. Founded in 1893 to serve the financing needs of the real estate industry, Sonnenblick-Goldman Company provides a full range of real estate financial services including debt and equity placements, joint ventures, investment sales and real estate advisory services. Headquartered in New York, Sonnenblick-Goldman maintains offices in San Francisco, Tokyo, Sydney and Hong Kong. For more information, visit Sonnenblick-Goldman Company�s website at www.sonngold.com.