Australia: Ascott Residence Trust (ART) has bought Quest Macquarie Park Sydney for A$46 million.
The property, in Sydney’s second-largest business district, Macquarie Park, will fall under a master lease agreement and add to the stapled group’s stream of stable income, said Beh Siew Kim, chief executive of ART’s managers on Wednesday.
The off-market sale was negotiated by Savills Australia on behalf of seller Tuggeranong Valley Rugby Union and Sports Club.
The property consists of 111 serviced apartments, across a mix of studios, and one- and two-bedroom apartments with full kitchens and laundry facilities.
Michael Simpson, Savills Australia’s managing director, hotels, said: “The interest and pricing reflect the highly attractive nature of Australian hotels, the high yield compared to other global markets, and the acknowledged safe-haven status of Australian real estate.”
Beh added: “The acquisition of Quest Macquarie Park Sydney is in line with ART’s strategy to enhance returns for our stapled security holders while strengthening investments in developed markets and maintaining a predominantly Asia-Pacific-centric portfolio.”
The annual rent under the master lease agreements provides an Ebitda yield of mid five per cent. It is also indexed at a four per cent increase each year, subject to a periodic market review, she added.
ART is the stapled group formed after the merger of real estate investment trusts Ascott Residence Trust and Ascendas Hospitality Trust.
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