Ascend Hospitality buys Melbourne serviced apartment project for AUS$120 million

George Sell George Sell Uploaded 04 December 2015


Australia: Malaysian developer UEM Sunrise has sold the 252-room serviced apartment component the Aurora Melbourne Central.

Singapore's Ascendas Hospitality Trust has bought the serviced apartments for AUS$120 million. The $770 million, 92-storey Aurora Melbourne Central is under construction, with all 941 of its apartments sold. It will be the tallest tower in the Melbourne CBD when complete.

Tan Juay Hiang, chief executive of the Ascendas Hospitality Trust said the acquisition is attractive for several reasons, including its prime CBD location and that, as a new development, it would need no further capital expenditure for some time. he also pointed to healthy growth figures for inbound tourism into Australia over the past 10 years, with growth in Chinese travel forecast to grow even more in coming years.

"In addition there is a quite fair bit of student population, which is growing," said Tan. "And there is fair bit of campus around that location. We do foresee there will be good demand, whether it's students or their parents coming down."


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