Aligned Funds Management checks in to WA hotel market with $22m Quest sale

Perth, 29 September 2015 – Australian hotel assets continue to be a sought after investment class, with the $22 million sale of the Quest Rockingham in Western Australia the latest in a series of transactions across the country.

CBRE Hotels’ David Kennedy and Ryan McGinnity negotiated the sale of the newly developed property on behalf of Diploma Group Limited via an off market sales campaign. Fund manager Aligned acquired the asset.

Opening earlier this month, the Quest Rockingham is a serviced apartment complex, comprising 48 apartments over seven levels.

Located at 22 Flinders Lane, the hotel also includes a conference centre, function rooms, gymnasium, swimming pool and 48 onsite car bays.

Mr Boultwood of Aligned said the property represented an attractive investment opportunity in a bourgeoning market.

“Rockingham was in need of a high quality accommodation offering, which combined with the underlying shortage of hospitality accommodation in Western Australia, presented an outstanding investment opportunity,” Mr Boultwood said.

“Securely leased to Quest Apartments, this property will fill a hole in the current hotel market, providing quality accommodation options in one of the state’s most prominent regional locations.”

Located approximately 40km south of the Perth CBD, the property benefits from close proximity to the Rockingham foreshore and adjoining alfresco café and dining strip.

Mr Kennedy commented: “There are a limited number of short-stay accommodation facilities in the Rockingham district and the Quest Apartment development will be a welcome addition to the limited short stay residential stock, particularly with corporates as well as leisure users.”

The sale follows recent research, highlighting an uptick in transaction activity in Australia’s hotel market, with more than $2.5 billion in transactions completing in the first half of 2015 – the second largest transaction pipeline across the Asia Pacific region.

CBRE’s 2015 Asia Pacific Hotel MarketView report shows robust appetite for hotel property across the country, with Australia ranking second behind Hong Kong in terms of transaction activity.

Earlier this month, an offshore Chinese buyer scooped the Pensione Hotel in Melbourne for circa $26 million, while a number of other sales are preparing to conclude over the coming weeks, including the 225-room Tune Hotel in Melbourne, the Wyndham TRYP Hotel in Brisbane’s Fortitude Valley, the Ibis Styles Cairns and the Crowne Plaza Terrigal.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.