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Multimillion dollar deal in Melbourne for franchised apartment business

Sarah Stowe

Quest will open its new $71m property in the Docklands in 2015Franchised accommodation business Quest Apartments has signed its biggest property deal yet: a $71m Docklands development in Melbourne.

The New Quay, Docklands development is the first transaction for the $500m strategic partnership between Quest and Singapore based The Ascott Limited.

Quest chairman Paul Constantinou said “We established this $500m strategic partnership with Ascott to provide our development partners with greater certainty of return through certainty of property take-out.

“We expect this to enable Quest to accelerate its network rollout particularly across CBD and suburban Sydney, Brisbane and Melbourne.

“Whilst the domestic accommodation market remains strong and has continued its growth for over a decade, supply of new rooms has lagged in most markets. This is mainly as a result of the lack of support from domestic institutions in the sector.

“Investment from large scale Asian groups like Ascott, will enable the sector locally to meet the demand.”

Constantinou added “Our current pipeline is robust with in excess of $1bn in completed assets anticipated to be delivered during the next three years.

“We are seeing lots of enquiry from residential developers at the moment who are looking to diversify their land holdings through exploring mixed use opportunities with Quest.”

Property developer MAB will design and build the Docklands accommodation which is set to open in 2019 with 221 rooms.