Quest to operate 131 serviced apartments in Kyren Group’s $100 million Adelaide CBD development
Serviced apartments group Quest has agreed to lease all 131 apartments that form the residential component of the Kyren Group's $100 million new mixed-use development currently under construction in the Adelaide CBD.
The project, which is now 100% leased, is being marketed by Colliers International director of office leasing Nicholas Shinnick, who describes it as a “substantial mixed-use development, one of the biggest to get underway in the city for at least a decade”.
He says the decision to include a serviced apartment component comes of the back off Adelaide’s high occupancy rates for short-term apartments.
The residential component of the 17 storey project had been marketed as Franklin Street apartments, but failed to attract any buyers.
Kyren Group managing director Theo Samaras blamed this on a soft residential market and an Adelaide City Council unwilling to "incentivise" inner-city living.
Quest is currently on an aggressive expansion drive with seven projects to be completed over the next 12 months.
Earlier this month it kicked off construction on a new apartment project in Wodonga on the NSW/Victoria border.
Quest is bullish about the Adelaide CBD market with The Adelaide Advertiser reporting that it is in negotiations with developers for more locations in Adelaide, including sites at the southern end of King William Street and the eastern end of Flinders Street.
The 70 Franklin Street project has reached the halfway mark in its construction and is due to be completed in early 2013.
Aside from the serviced apartment component, the project incorporates a 20,000 square metre office space and 700 square metres of retail space.
An adjoining 700 bay car park in Young Street has already been completed.
Three office floors have been pre-committed, including the top two levels which will be taken up by law firm Piper Alderman.
Quest’s Andrew Weisz says Adelaide is fast becoming an “international hub for the corporate sector, so it's imperative that our business follows corporate travellers as they move into the city”.
"This development, along with other major projects in Adelaide, represents a great opportunity for the serviced apartment industry and Quest will continue to respond to corporate demands for quality accommodation," he says.
The Lucid Consulting Engineers and Cheesman Architects-designed building has been awarded a five star NABERS rating.
Samaras says investing in five star buildings is a way to stand out in the marketplace and to attract premium tenants.
“In the future, a five star build is likely to be the normal benchmark. With the right project team, these developments can deliver on the bottom line,” he says.
“70 Franklin Street is also ideally located to benefit directly from access to Victoria Square, Adelaide’s Central Market and Chinatown, all of which are situated only a short walk away; this type of amenity is highly regarded.”