Folkestone enters JV to develop Green Square hotel

Company News

by David Chau

Real estate funds manager, Folkestone Ltd (ASX:FLK), has entered into a 50/50 joint venture with accommodation provider, Furnished Property, to develop a 142 room hotel at Green Square, Sydney.

Folkestone is planning to launch the Folkestone Green Square Hotel Fund in March 2017, to raise around $22.5 million of third party capital – for the purpose of developing the hotel.

The hotel will also be located at 18 O’Riordan Street, Alexandria – which the company says is located within the $13 billion, 278 hectare Green Square Urban Regeneration Area.

The company also says construction is scheduled to begin in early 2017, and the hotel is expected to open in late 2018.

Folkestone reported a net profit of $9 million at 30 June 2016.

David Chau

Finance News Network
David joined FNN in April 2016. In addition to presenting the Market Outlook and latest business news stories, David interviews senior economists and CEOs of ASX-listed companies. Prior to working for FNN, David was a litigation lawyer.