Malaysian developer UEM Sunrise sell Melbourne project's serviced apartments for $120 million

Listed Malaysian property developer UEM Sunrise Berhad is selling its serviced apartments at the La Trobe Street mixed-use development, Aurora Melbourne Central, for $120 million.

It has signed an agreement with Ascendas Hospitality Trust to sell the 252 serviced apartments on levels 10 to 32 of Aurora Melbourne Central along with common facilities for guests located on level nine and a restaurant on the ground floor.

Aurora Melbourne Central mixed-use development is UEM Sunrise’s first project in Australia with a gross development value (GDV) of $770 million. 

Construction has commenced, with the official ground-breaking ceremony held on September 21. Completion of Aurora Melbourne Central is scheduled for 2019.

The 92-storey development comprises more than 120,000 square metres of built-up area and includes 941 residential apartments, retail spaces, strata offices as well as the 252-room serviced apartments. It is the tallest building in Melbourne’s CBD.

Upon completion, the development will have direct access to Melbourne Central Railway Station and the Melbourne Central Shopping Centre across the road. The new CBD North station of Melbourne Metro will be located next to the project site.

“This is not UEM Sunrise’s first strategic collaboration with the Ascendas Group. We are collaborating on a 60:40 joint venture with Ascendas Group to develop an integrated eco-friendly 519-acre Nusajaya Tech Park in Iskandar Malaysia, and Phase 1 is scheduled to be completed next year,” said Anwar Syahrin Abdul Ajib, UEM Sunrise’s CEO and managing director.

Ascendas Hospitality invests, directly or indirectly, in a diversified portfolio of income-producing real estate used mainly for hospitality located across Asia, Australia and New Zealand. Its asset portfolio comprises 11 hotels with over 4,000 rooms across Australia, China, Japan and Singapore.