Ascott JV snaps up prime Australian property for A$71m

The 221-unit property is located in Docklands, Melbourne.

CapitaLand’s wholly owned serviced residence business unit further deepens its footprint in australia as it acquires its first serviced residence in Docklands, Melbourne as part of its A$500 million (S$500 million) strategic partnership with Quest Apartment Hotels, one of the largest serviced apartment operators in Australia.

According to a press release from Ascott, the property will be acquired through a 50:50 joint venture between Ascott and Qatar Investment Authority.

“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,” the release said.

Lee Chee Koon, CEO of Ascott said Ascott focuses on prime city centre locations whereas Quest primarily targets suburban locations with underserved demand.

“In Australia, Ascott currently manages five serviced residences with more than 670 apartment units in Melbourne, Perth and Hobart under the Citadines and Somerset brands. Quest has more than 150 properties with over 8,000 existing units in Australia, New Zealand and Fiji, and a further 1,500 units under construction,” the press release added.