Ascott Residence Trust buys Sydney serviced apartments

George Sell George Sell Uploaded 12 March 2020

LinkedIn

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.

 

 

LinkedIn

Be in the know.

Subscribe to our newsletter »
Subscribe

Thank you sponsors