The Urban Developer
AdvertiseEventsWebinars
Urbanity
Awards
Sign In
Membership
Latest
Menu
Location
Sector
Category
Content
Type
Newsletters
URBAN LEADER AWARDS ARE BACK! START YOUR NOMINATIONS
URBAN LEADER AWARDS ARE BACK! START YOUR NOMINATIONS
LEARN MOREDETAILS
TheUrbanDeveloper
Follow
About
About Us
Membership
Awards
Events
Webinars
Listings
Resources
Terms & Conditions
Commenting Policy
Privacy Policy
Republishing Guidelines
Editorial Charter
Complaints Handling Policy
Contact
General Enquiries
Advertise
Contribution Enquiry
Project Submission
Membership Enquiry
Newsletter
Stay up to date and with the latest news, projects, deals and features.
Subscribe
ADVERTISEMENT
SHARE
print
Print
OfficeStaff WriterTue 12 Jul 16

Ascott And QIA Acquire Docklands Quest

MABC8986_Elm-Stone_E01_Hero_Afternoon_620x380

CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott), is acquiring its first serviced residence in Docklands, Melbourne as part of its A$500 million strategic partnership with Quest Apartment Hotels (Quest), one of the largest serviced apartment operators in Australia.

The 221-unit property will be acquired for A$71 million through a 50:50 joint venture between Ascott and Qatar Investment Authority (QIA). Quest will lease the serviced residence, which will be named Quest NewQuay Docklands, and operate it under Quest’s franchise when the property opens in 2019. Quest NewQuay Docklands will be Quest’s largest property in its network.

Mr Lee Chee Koon, Ascott’s Chief Executive Officer, said: “Ascott is a global serviced residence leader that owns and manages over 46,000 units worldwide and we have a strong base of customer accounts that are multinational companies, while Quest is a leading operator in Australia with more than 80% of its customers from Australia’s top companies.

"Through our strategic partnership with Quest, we can combine our expertise to drive Ascott’s expansion in Australia and enjoy stable income as Quest will provide fixed leases for the properties and operate them under its well-established franchise. By taking a stake in Quest, Ascott also stands to benefit from the growth of the Quest franchise.

"Ascott focuses on prime city centre locations whereas Quest primarily targets suburban locations with underserved demand. Together, we can lead the expansion of the serviced residence sector which has significant untapped potential.”

Through the Ascott-Quest alliance formed in late-2014, Ascott will invest up to A$500 million in new properties that Quest will secure for its franchise in Australia until 2019. Ascott has a right of first refusal to acquire the properties sourced by Quest. Quest will provide a lease for the properties, which will be operated under franchises using the Quest brand. In addition, Ascott acquired a 20% stake in Quest, with an option to increase it to 30%. At the same time, Ascott’s real estate investment trust, Ascott Residence Trust, also acquired three operating serviced residences in Greater Sydney from Quest. Quest Sydney Olympic Park, Quest Campbelltown and Quest Mascot are being operated under franchises by Quest.

Mr Lee added: “Forging strategic alliances globally with partners such as Quest and QIA, as well as industry leaders from land owners to property developers, construction firms, online platforms and tech companies; enables Ascott to deepen our presence and build scale in key cities. Ascott’s US$600 million equity joint venture fund with QIA has boosted our capacity to invest and grow quickly. This property in Melbourne is our first acquisition in Australia in partnership with QIA and our fourth within a span of seven months.

"The four acquisitions have expanded our portfolio across four gateway cities. Our partners have chosen to collaborate with us due to Ascott’s strong capabilities in managing award-winning serviced residences globally for the past over 30 years. We expect these strong partnerships to gather more momentum as we pursue Ascott’s target of 80,000 apartment units globally by 2020."The 221-unit property in Docklands, Melbourne is Ascott’s fourth acquisition in partnership with Qatar Investment Authority within seven months.

ResidentialHotelAustraliaReal EstateDeal
AUTHOR
Staff Writer
"TheUrbanDeveloper.com is committed to delivering the latest news, reviews, opinions and insights into the best of urban development from Australia and around the world. "
More articles by this author
ADVERTISEMENT
TOP STORIES
Exclusive

Robots Not a Miracle Cure for Housing Productivity Crisis

Vanessa Croll
6 Min
Exclusive

Where 600 Wealthy Families Are Putting Their Millions

Taryn Paris
6 Min
Brique Projects EDM
Exclusive

Brique Thrives in Cauldron of SE Queensland Development

Clare Burnett
7 Min
Henny Prime Henny Background
Exclusive

Why Henny and Prime Edition are Moving into Student Living

Leon Della Bosca
7 Min
Riverlee Seafarer's 1 Hotel HERO
Exclusive

Melbourne’s North Bank Awakens After Decades of Dormancy

Leon Della Bosca
8 Min
View All >
Markets

Turn of the Tide as Supercycles Track Upwards

Clare Burnett
Exclusive

Robots Not a Miracle Cure for Housing Productivity Crisis

Vanessa Croll
Bates Smart Architects' rendering of the two towers for Lendlease, MEA and NSKRE's project at 175 Liverpool Street in Sydney.
Residential

Lendlease Signs Partners for Hyde Park Highrise

Marisa Wikramanayake
Announced this month, dual 35-storey towers are planned in a $2.5-billion luxury play by the high-profile developer…
LATEST
Markets

Turn of the Tide as Supercycles Track Upwards

Clare Burnett
5 Min
Exclusive

Robots Not a Miracle Cure for Housing Productivity Crisis

Vanessa Croll
6 Min
Bates Smart Architects' rendering of the two towers for Lendlease, MEA and NSKRE's project at 175 Liverpool Street in Sydney.
Residential

Lendlease Signs Partners for Hyde Park Highrise

Marisa Wikramanayake
2 Min
Exclusive

The Urban Developer Awards for Industry Excellence Winners Revealed

Editorial Desk
14 Min
View All >
ADVERTISEMENT
Article originally posted at: https://www.theurbandeveloper.com/articles/ascott-and-qia-purchase-docklands-quest