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Singapore-based fund manager ZACD has acquired 64 upcoming serviced apartments in Perth for AU$12.5 million, reported the Australian Financial Review.
The properties were sold by developer Finbar, while the transaction was jointly negotiated by Prime Resort Sales and Resort Brokers Australia.
The transacted studio units are located within the podium of the 22-storey Aire West Perth tower, which has a gross development value of AU$108 million.
Located at 47-659 Murray Street, the mixed-use project will feature 178 apartments ranging from one- to three-bedroom units. Aside from having their own lift and lobby, the serviced apartments will come with 65 carparks as well as dedicated and shared amenities.
According to Finbar Managing Director Darren Pateman, the apartments are expected to be completed by mid-2018. 70 percent of the residential units and all the commercial spaces on the first level have been taken-up, with construction reaching the eighth floor.
The deal represents ZACD’s second acquisition in the country in just a number of weeks after it purchased the Melbourne HQ of Australia-listed iSelect for AU$27.33 million from Brisbane-based Trilogy Funds.
At present, the fund manager is holding talks with prospective operators and expects to appoint a manager for the serviced apartments by year-end.
Furthermore, the transaction is the third counter-cyclical hotel purchase by Singaporean entities amidst Perth’s sluggish hospitality market. A few months ago, Chip Eng Seng bought the 84-key Sebel Mandurah hotel for around AU$15 million, while a private investor from the city-state picked up the 4.5-star Crowne Plaza Perth for AU$50 million.
Based on data from STR, Perth was the worst performing hotel market among Australia’s state capitals in the year to June. In fact, occupancy levels slumped from 78 percent to 73 percent over the period, while average daily room rates dropped from AU$188 to AU$172.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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