Intercontinental Hotel Double Bay sold by Chinese private equity group for almost $180m

A Chinese private equity group has sold the Intercontinental Hotel Double Bay for almost $180 million to Melbourne-based developer Fridcorp, founded and headed by Paul Fridman.

Independent sources say there are suggestions Fridcorp in a joint venture Piety Group paid $178 million to Shanghai United for the luxury five-star hotel in the heart of Double Bay village amid plans to re-style it as a Louis Vuitton-branded hotel.

The sale sets a record for Double Bay’s luxury hotel and commercial market. It was negotiated by The Agency’s Steven Chen, who declined to comment for this story.

Mr Fridman founded Fridcorp in 1997, aged just 20, and expanded into the Sydney market about eight years ago when Fridcorp developed the 141-apartment Eve residential development in Erskineville.

Fridcorp is currently developing a $700 million four-tower, mixed-use precinct in Hurstville, in Sydney’s south. Called Beyond, it will be home to about 1000 residents in 563 apartments when complete.

A spokeswoman for Fridcorp confirmed the company’s purchase on Monday.

The sale comes four years after the Bates Smart-designed, 140-room harbourside luxury hotel was purchased by Shanghai United, backed by Hong Kong developer Zobon Group, for about $140 million from Singapore’s Royal Hotel Group.

The Royal Hotel Group had undertaken a renovation of the hotel since they bought it for a reported $60 million in 2013.

The hotel include function and conference facilities, two bars, a rooftop pool and bar and 156 underground car spaces. The hotel is managed by Intercontinental Hotels Group.

Shanghai United and Zobon Real Estate are both chaired by Shanghai-born businessman Ping Wei, who is best known in Sydney’s high-end real estate circles for smashing the Longueville house price record twice in 2016 and 2017 when he bought two local trophy homes for $11.88 million.

One of those residences, a non-waterfront mansion designed by Stanic Harding Architects, was sold in 2018 for the same amount, and the waterfront house at the other end of the lower north shore suburb remains in his name.