Australia: A block of 79 serviced apartments in Sydney’s Castle Hill, currently leased to Quest, is on the market for the first time since its construction 12 years ago.
No price was disclosed for the property at 8 Gladstone Street, which is on a single title, but comparable sales include Quest Griffith, in south-west NSW, in February this year, which achieved more than $15 million on a 7.3 per cent yield. Similarly, Quest Newcastle was acquired for some $16 million in July 2017 on a 7.2 per cent yield.
The property measures 4,249 square metres in gross floor area across six levels and includes 60 car parking spaces. It was purpose-built for Quest Apartments as a tenant in 2006 by a private group, which is the owner. With four per cent annual rent increases, the net income is set to increase to about $1,315,000 in July 2018.
Knight Frank’s Mark Litwin, who is selling the property with Arland Domingo and Andy Hu, said interest had come from local and offshore buyers, including fund managers and personal investors. Most were interested in the upside of the income stream, thanks to the Sydney Metro Northwest rail line that will begin running in early 2019.
“Certainly the train line that will come into operation in 2019 is the big game changer,” Litwin said. “Anyone will buy property in that part of the world now, because that train line’s coming in and it’s coming in less than a year’s time.”
Expressions of interest close on April 11.
