Australia: Operator Veriu Group has opened the Punthill Tuggeranong aparthotel in Greenway, Canberra, the group’s first property in the capital.
Punthill Tuggeranong, an office conversion, features 76 apartments across a range of studio to three-bedroom units.
Each apartment offers a fully equipped kitchen, in-room laundry, a smart TV and a desk. On-site parking is also available.
It marks the third property to open under Veriu’s Punthill brand in the last three months, and is also the group’s first office conversion. The second – Veriu Adelaide on King William Street – is slated to open in 2025.
A further four-to-five CBD conversion opportunities are in the pipeline for Veriu, forming part of a longer-term development strategy to adapt office space into aparthotels.
Zed Sanjana, Veriu Group CEO, said: “With a permanent shift towards working remotely post-pandemic, there’s been a significant reduction in the demand for office space in recent years. That’s resulted in a steady increase in Australia’s national office vacancy rate as the supply of space, much of it baked in through new development, has outpaced demand – in turn leading to massive reductions in office values.
“For owners of B and C-grade buildings considering the significant capital expenditure and lease incentive requirements to compete with A-grade buildings, the chance to reinvest in a different asset class managed by a hotel operator like Veriu, with a proven track record and a guaranteed long-term lease structure, is an increasingly compelling proposition.
“We really need governments and councils everywhere to be more open-minded about allowing office conversions to proceed – especially if they’re serious about wanting to drive economic growth and tackle the current housing crisis,” he added.
