The Canberra Viking Group have sold the Quest Hotel in Macquarie Park for $46M, reflecting a passing yield of approximately 5.8%.
Quest Macquarie Park features 111 apartments over six levels, comprising studio, one, two and three bedroom configurations. The Hotel was developed by Goodman in 2016 and leased to Quest for 21 years on an initial annual rent of $2.44 million. Goodman pre-sold the asset prior to completion to the Vikings Group for $34.5 million, reflecting a passing yield of 7%.
The Tuggeranong Valley Rugby Union and Sport Club, which trades as Vikings Group, is a not-for-profit entity operating four licensed clubs in Canberra offering dining, gaming, entertainment and sports. Despite being a not for profit group, the trade on the Quest Hotel has provided the club with a trading profit of approx $10m.
The purchaser is undisclosed at present, but likely to be part of the Ascott group who own the nearby Courtyard by Marriott on Lane Cove Rd. In 2014, Quest struck a $500 million partnership with Singapore serviced-accommodation giant The Ascott Limited to invest in 20 or more new serviced-apartment hotels over five years. In October last year, the group announced the pre-purchase of a hotel asset in Walker Street North Sydney for S$202M.
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