Serviced accommodation chain sells two regional sites for $26m
Quest Serviced Apartments has sold two major properties to domestic investors for $26.5m. Crowe Howarth, one of Australia’s largest accounting and financial advisory firms, has paid $14.7m on behalf of a syndicate of local investors for the regional New South Wales Quest Dubbo property. The regional Victorian property Quest Shepparton was sold to a local private investor for $11.8m.
Crowe Horwath Property senior manager, Julie Perry, said a similar sale 18 months ago when the accountancy firm’s property division purchased the Quest Albury venue has proved a success.
“Our clients are looking for diversity in their investment portfolios which provide not only stable cash returns but also capital growth. Quest Serviced Apartments, has particularly strong regional brand presence and provides this sought after investment criteria,” Perry explained.
Quest chief executive officer, Zed Sanjana, said the Dubbo and Shepparton sales demonstrate a growing understanding of the market by investors.
“These transactions are indicative of strengthening interest in serviced apartments as an asset class, which is not only a trend we are seeing in regional markets, but also in the suburban area and, in particular, gateway capital cities.
“Investors continue to seek exposure to predictable returns, coupled with the security of a long-term lease underpinned by a strong brand – and that is what Quest provides,” Sanjana said.
Last year Quest announced a $500m partnership with Singapore based The Ascott Limited (“TAL”).
Quest has 14 properties currently under construction, with many more in the development pipeline.
The company continues to wholly own four major properties including Chermside, which is currently marketed for sale via Jones Lang LaSalle, as well as Mackay, Ipswich and Mildura.