Quest Serviced Apartments has taken two steps to enhance its growth. It has formed a $500 million partnership with a Singapore firm and brought together three high profile business leaders to sit on an advisory board that will help steer the company’s strategic direction.
The multi-million dollar deal is with a global serviced apartment owner-operator business, The Ascott Limited, itself a wholly-owned subsidiary of Capitaland Limited, one of Asia’s largest real estate companies.
This partnership will fast track Quest’s expansion plans with a $500 million investment in properties across Australia over the next five years; this is expected to fund five properties annually in addition to the five to eight venues Quest opens each year.
Zed Sanjana, the CEO at Quest, said “This will provide us with an opportunity to accelerate our organic growth over the next five years to take advantage of the strong demand dynamics in the Australian accommodation market.
“The $500 million future commitment by The Ascott Limited and portfolio acquisition by Ascott Residence Trust, demonstrates the growing investment appetite in this asset class from global institutional investors, and their confidence in the strength of the Australian accommodation market,” he said.
Lee Chee Koon, CEO at The Ascott Limited said “Through our strategic partnership with Quest we can leverage each other’s knowledge and contacts in Australia to rapidly extend our presence in the growing market for international quality serviced apartments. We also expect a stronger pipeline of properties in Australia for Ascott to acquire.”
Ascott has also invested $83 million in three Quest properties: Mascot Airport, Sydney Olympic Park and Campbelltown. These venues will be leased to Quest on a 25 year lease, and continue to be operated by Quest franchisees.
The strategic partnership will also see joint initiatives across sales, marketing and distribution.
EXPERT ADVICE
Former chairman of McDonald’s Australia, Peter Ritchie, joins former chairman of Tourism Accommodation Australia, Tony South, and John Selak, Ernst & Young partner on the company’s first advisory board.
Peter Ritchie grew McDonald’s Australia to more than 500 stores and 50,000 employees. He has held non-executive positions at companies such as Westpac and Mortgage Choice and is deputy chair of the Seven Network.
“What I’m bringing is very much on the franchising side. I know how good franchisees work and that they really are the core of the business. I think I know which buttons to push.”
Within five years Quest plans to have taken its product to new markets overseas.