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.