Australia: Savills acquires hotel, shopping mall assets for $68m

Visual from company website

Savills Investment Management, an international real estate investment manager, has made its debut acquisitions in Australia, investing up to $68 million (AUD90 million) in a hotel company, and a retail asset.

Savills IM made the deal from its pan-Asian fund, the Savills IM Asia Pacific Fund (SIM APF), which is an open-ended, pan-Asian, core/core-plus fund investing in mature markets within the Asia Pacific region.

The acquired companies are Quest East Perth, a newly-built four-star serviced apartment hotel located within Perth’s central business district (CBD), and The Station Oxley, a shopping centre in Brisbane with a net lettable area of approximately 7,100 sqm.

The company said that these latest acquisitions complement SIM APF’s existing assets in Japan and Singapore and dovetail with the fund’s diversification approach of investing across multiple asset classes comprising office, retail, logistics, hospitality and residential.

Savills IM head of investments in Australia Lee Tredwell, said both the assets will provide the fund with secure passive cash flow with fixed increases, at above inflation level, with limited capex or leasing requirements in the short to medium term.

Savills IM purchased Quest East Perth from a local developer in December 2016. The property comprises a total of 130 rooms, a rooftop function area, in-house gymnasium and conference facilities. It was purchased with a long-term lease to leading operator Quest through to 2031.

In March 2017, Savills IM acquired The Station Oxley, serving as its first foray into Queensland real estate market.

The property has a weighted average lease expiry (WALE) of over 10 years and is anchored by Woolworths and the Queensland Government, which account for 65 per cent of the property’s income. It also boasts of 16 specialty stores.

As part of its expansion strategy, Savills IM disclosed last week the appointment of Annie Li as associate director and portfolio manager at Savills IM based in Sydney.

In her new role, Annie will help manage Savills IM’s existing investments and grow the firm’s Australian investment platform, which currently includes a number of global and regional mandates.

Also Read:

Savills IM appoints Volker Wanka as fund management director in Singapore

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.