Harry Triguboff's Meriton group to build 700 serviced apartments next year across Australia

Harry Triguboff’s Meriton group will complete 700 serviced apartments across Australia in 2012, and has recently acquired a North Sydney site.

The site at 80 Arthur Street is in the heart of the North Sydney CBD and measures 922 square metres. The sales price has not been disclosed. The vendor was the Medi-care Centre Foundation, which acquired the land and office building in 1988 for $14.1 million. A nearby vacant lot on Little Walker street measuring 1,600 square metres sold for $59 million in June 2006.

Construction of the North Sydney apartments is expected to begin next year subject to North Sydney Council approving concept plans and then a full development application.

The North Sydney acquisition follows Meriton acquiring a property in Zetland in the inner east, which will be developed into a $200 million serviced apartment project.

The Zetland project will take the number of projects Meriton is building along South Dowling Road to 5,500.

Apartments in the Zetland block will start at $550,000.

According to Triguboff occupancy rates in serviced apartments are strong while room rates in Australia compare well with those overseas.

Speaking at a property lunch last week, Triguboff highlighted that most of his new apartments were being sold to Asian buyers and that many potential Australian buyers were being priced out of the market due to high costs and high interest rates.

"This ability to be competitive, even with Asia, proves that we are in a very strong long-term position," he has told The Australian.

He says the new serviced apartments will also be targeted at Asian buyers.

Meriton launched its serviced apartment business in 2005 and now has a portfolio of 2,258 apartments and over 3,300 bedrooms with seven buildings in Sydney, two on the Gold Coast and one in Brisbane.

In September this year, Meriton opened two new serviced apartment properties.

Most striking was the 234-metre-high Soleil building on Adelaide Street in the Brisbane CBD, now the city’s tallest building and comprising over 460 apartments. It was Meriton first serviced apartment in Brisbane.

In Sydney, Meriton opened a purpose built serviced apartment property with 247 apartments in the Haymarket district, cornering both Campbell Street and George Street.

Meriton has sold 120 out of 130 apartments at the former site of Channel 7 in Epping, Northern Sydney.

Meriton acquired the site for $55 million in June 2010

Once completed the site will have 800 apartments. Triguboff says Meriton plans to develop the site further with the addition of 200 apartments.