Investor syndicate buys Quest Albury serviced apartments for $24.8 million
A new investor asset class is emerging after one of Australia’s largest accounting and financial advisory firms bought a NSW Quest serviced apartment property on behalf of a syndicate of 60 investors.
Crowe Horwath Property senior manager, Julie Perry, says the firm paid $24.8 million for the 550 Kiewa Street property containing the 104-key Quest Albury as its first foray into the accommodation sector. It was developed in 2008. Other tenants are the Q Manhattans tapas bar and restaurant and the Endota day spa.
Perry says the investment ends a search for stable cash generating and capital growth property investment opportunities favoured by her company’s clients.
“We have found that our clients are becoming more astute to the various opportunities in the market. When we provided them with an opportunity to invest in a strong performing, but diverse asset style, property the response was overwhelming,’’ she says.
“The interest has reinforced the local community support for local investment.’’
Quest chairman Paul Constantinou says the transaction is part of a growing trend with investors seeking opportunities away from traditional commercial, industrial and retail sectors.
He says the serviced apartment sector is on a roll with Quest building its third property in the Albury Wodonga region. The expansion strategy follows regional and suburban growth corridors throughout Australia.
‘’Investing with Quest provides predictable returns, fixed rental income and the security of a long-term lease,’’ he says.
“During uncertain financial times, investors are turning away from traditional assets, preferring instead to safeguard their financial future by investing in assets they can see and understand.”
Quest provides short-term business traveller accommodation. Since launching 24 years ago, the group says it has become the largest and fastest growing serviced apartment operator in Australasia. There are about 150 Quest sites across Australia, New Zealand and Fiji.