Ascendas buys $120m Melbourne apartments
Singapore’s Ascendas Hospitality Trust has swooped on the serviced apartment component of the Aurora Melbourne Central tower on La Trobe Street in a deal worth $120 million.
Malaysian development major UEM Sunrise has agreed to sell the hotel part of the $770m project, which will be the tallest tower in the Melbourne CBD when completed.
The Ascendas Hospitality Trust will control the 252 serviced apartments in the building located on levels 10 through to 32.
Ascendas Hospitality Trust chief executive Tan Juay Hiang said the group had been drawn to the location of the Aurora project, which is near the State Library and RMIT University in the heart of the CBD.
“This will strengthen our foothold in a city which we believe will continue to be a key destination in Australia for business as well as leisure travellers,” Mr Tan said.
“This property will enhance our existing portfolio and there may be potential synergy with our existing hotel in Melbourne — Pullman and Mercure Melbourne Albert Park. We are confident that the Aurora Melbourne Central will be a success and are happy to be part of this iconic landmark.”
The Aurora will rise 92 storeys at its expected completion date in the third quarter of 2019.
The designer of the tower is Elenberg Fraser, with the construction works to come from Probuild. About 95 per cent of the 941 apartment project sold in just three weeks when off-the-plan sales started in November last year.
UEM Sunrise chief executive Anwar Syahrin Abdul Ajib said the sale was a “resounding win” for the company.
“Ascendas Hospitality Trust has an impressive portfolio of hospitality assets in the Asia Pacific Region and we look forward to the serviced apartments at Aurora Melbourne Central becoming one of the Ascendas Hospitality Trust’s most significant assets,” Mr Anwar said.
He said the two companies already had an existing relationship. “We are collaborating on a 60-40 joint venture with Ascendas Group to develop the integrated eco-friendly 519-acre (210ha) Nusajaya Tech Park in Iskandar Malaysia,” he said.
The Ascendas Hospitality Trust was listed on Singapore Exchange in 2012 and has a strong weighting to Australia.
The Aurora Melbourne project will be the 12th property added to its portfolio and its seventh Australian property. It owns Pullman Sydney at Hyde Park and the Novotel Sydney hotels in Haymarket and Parramatta.
Another trust in the Ascendas stable, the listed Ascendas Real Estate Investment Trust, in September bought a $1 billion logistics portfolio from Singaporean sovereign wealth fund GIC and Frasers Property Australia.
Source: The Australian, Greg Brown, 4th December 2015
