Ascott is acquiring its first serviced residence
in Docklands, Melbourne as part of its A$500 million (S$500
million) strategic partnership with Quest Apartment Hotels
(Quest), one of the largest serviced apartment operators in
The 221-unit property will be acquired for A$71 million
(S$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
“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,” said Mr Lee Chee Koon, Ascott’s
Chief Executive Officer. “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.
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.
Quest NewQuay Docklands
The serviced residence is located within the business and
lifestyle precinct of NewQuay in Docklands, an extension of
Melbourne’s Central Business District which is a 10-minute drive
The ongoing development of Docklands is one of Australia’s
largest urban renewal projects and the area has already attracted
more than A$10 billion of private investment.
Upon completion of
the Docklands redevelopment in 2025, the State Government of
Victoria expects Docklands would have received A$17.5 billion of private investment and be home to approximately 60,000 office
workers, signifying potential demand for Quest NewQuay Docklands.
Quest NewQuay Docklands is expected to draw strong demand from
corporate customers as it is located close to some of Australia’s
largest companies and government institutions. These include ANZ
Bank, National Australia Bank, Australian Customs Services, Medibank, Myer, Channel 9 and Channel 7.
The serviced residence is
also located opposite the last lot within the NewQuay precinct
where an office building is slated to be built.
Docklands is within walking distance to Etihad Stadium where major
concerts, conferences and events are held; Harbour Town Shopping
Centre; O’brien Group Arena which has one of Australia’s biggest
ice skating rinks; as well as a range of waterfront dining
The serviced residence will offer studios, one and
two-bedroom apartments as well as facilities such as conference
rooms, a gymnasium and an outdoor terrace with barbeque pits.
See other recent