The Ascott Limited will acquire a new serviced residence in Docklands, Melbourne in a 50:50 joint venture with Qatar Investment Authority.
The 221-unit will cost A$71 million (US$53 million) and will be leased to Quest Apartment Hotels, who signed a A$500 million (US$380 million) deal with Ascott in late 2014.
The Australian company, which has a strong brand equity in Australia, will operate the new property as the Quest NewQuay Dockland when it opens in 2019.
Located within the NewQuay precinct, the serviced residence will be a ten-minute drive from Melbourne’s CBD. Docklands is one of Australia’s largest urban renewal project, with the State Government of Victoria expecting it to receive A$17.5 billion in private investment and become home to approximately 60,000 workers when the redevelopment is completed in 2025.
When Quest NewQuay Docklands opens its doors, it will be within walking distance from attractions such as the Etihad Stadium, Harbour Town Shopping Centre, and O’brien Group Arena. The serviced residence will offer a mix of studio, one- and two-bedroom apartments, as well as facilities such as conference rooms, a gymnasium and an outdoor terrace with barbecue pits.
“Demand for accommodation in Australia from both international and domestic corporate customers remains strong but the supply of new accommodation has been lacking,” said Paul Constantinou, chairman of Quest Apartment Hotels.
“Ascott’s investment will not only enable us to accelerate Quest’s growth to cater to the demand in Australia, our tie-up with Ascott also provides a solid platform for us to take the Quest brand overseas.”