Franchise focus sees Quest offload Dubbo, Shepparton properties
Zed Sanjana, the CEO of Melbourne-based Quest. Source: Supplied
MELBOURNE-based Quest continues to shed assets with the sale of two regional serviced-apartment complexes, as investor appetite for hospitality assets shows no sign of waning.
A syndicate of investors led by financial adviser and accountancy firm Crowe Horwarth has bought the 65-room Quest Dubbo in regional NSW for $14.7 million. And a local private investor has snapped up the 69-room Quest Shepparton in regional Victoria for $11.8m. Quest developed both properties seven years ago.
Quest chief executive Zed Sanjana said yesterday that the group would also sell apartment complexes in Mackay, Ipswich and Mildura. “We had a much larger portfolio four years ago, we had about 15 properties,” he said. “We have sold most of them ... everything is always for sale at the right price, but we are happy to hold the assets ourselves.”
Like international hospitality giant Starwood, Mr Sanjana said Quest had embarked on an asset-light strategy. “We are refocusing on what we do best, which is franchising,” he said. “There is a really strong appetite in the investment community for hospitality assets. Serviced apartments as an asset class in itself provides investors with a stable rental income stream. And yields are quite attractive at the moment.”
Meanwhile, building and development company Diploma is selling two of its Quest apartment complexes in one line for $63.5m to a foreign investor.
The serviced-apartment complexes are under construction in Flinders Lane, Rockingham in Western Australia, and Adelaide Terrace in Perth.
The sale is expected to be completed by the end of March.
The foreign buyer is undisclosed.
The sales follow the announcement last year of a $500m partnership between Quest and Singapore-based The Ascott Limited that allowed Ascott to buy $83m worth of Quest properties and commit to funding the expansion of more local developments.
Source: The Australian - 19th February 2015
