Future apartment site sells for $120 million

2015-12-16--notwIn the sale of part of a building not yet even built, UEM Sunrise Berhad has agreed to terms to sell the serviced apartment component of their Aurora Melbourne Central tower. UEM Sunrise Berhad is an engineering infrastructure group, established in 1966, with businesses across engineering, construction, township development and asset and facility management. The company is listed on the Bursa Malaysia exchange. The Aurora is one of UEM Sunrise’s three forays into the Melbourne market. Its confidence in the inner city residential sector is bolstered by the latest Bureau of Statistics’ figures – a growth forecast of 1,800 people per week in ‘the world’s most livable city’.

The Aurora, designed by Elenberg Fraser with a floor plate that is inspired by the Malaysian national flower, the Hibiscus, will comprise 941 apartments of which all have sold off the plan. Construction has begun with completion scheduled for 2019. The 252 serviced apartments will be located between levels 10 and 32 of the 92-level building.

The purchaser is the Ascendas Hospitality Trust, a Singaporean group established for investing, directly or indirectly, in income-producing real estate used predominantly for hospitality purposes located across Asia, Australia and New Zealand. Ascendas Hospitality Trust listed on the Singapore Exchange in July 2012. Ascendas Pte Ltd holds about 35% of the units in Ascendas Hospitality Trust and Accor Asia Pacific holds 6.9% of the units.

Ascendas has agreed to terms at $120 million for the 252 serviced apartment rooms of the Aurora development. Ascendas’ CEO, Tan Juay Hiang, cites strong tourism growth, an expanding student population and the site’s proximity to Melbourne Central shopping centre and underground as indicators of future demand for the apartments in what will be Melbourne’s tallest building.

 

Meredith Baume
Commercial Research


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