Australia’s biggest developer, owner and operator of industrial property and business parks, Goodman Group, will develop a 111-room hotel at its Macquarie Park business park in Sydney’s northern suburbs for accommodation group Quest.
The six-level Quest Macquarie Park hotel at 71 Epping Road will be acquired by Canberra club operator Vikings Group, when it is completed in December 2016. Vikings has entered into a contract to purchase the development for $34.5 million from Goodman, with Quest entering into a 21-year lease and paying annual rent in the first year of $2.44 million.
Privately held Quest, which operates over 150 apartment hotels in Australia, New Zealand and Fiji, is also partnering with Goodman Group on a new serviced-apartments development in Auckland.
The new hotel is within walking distance of the corporate offices of Philips Electronics, Hyundai and Konica Minolta, with Macquarie University and the Macquarie University Hospital nearby. An additional 40,000 jobs are expected to be created at Macquarie Park over the next 15 years, according to the City of Ryde.
“We are thrilled to partner with Goodman to develop the brand new Quest Macquarie Park, our second property in the area to complement the established and successful Quest North Ryde,” said Quest CEO Zed Sanjana. “We look forward to strengthening our partnership with Goodman and working together over the coming year.”
In 2014, Quest struck a $500 million partnership with Singapore serviced-accommodation giant The Ascott Limited to invest in 20 or more new serviced-apartment hotels over five years. Recent partnerships have been with local developers including ASX-listed Diploma Group, the Tarascio family’s Salta Properties, the family-run Pellicano Group and now the $10.6 billion Goodman Group.
Goodman Group has almost 270,000 square metres of commercial property under management in Macquarie Park and North Ryde. “We are pleased to be partnering with Quest and delivering this high-quality development which will enhance the amenity for both the estate and the broader community in Macquarie Park,” said Goodman Australia general manager Jason Little.
The Tuggeranong Valley Rugby Union and Sport Club, which trades as Vikings Group, is a not-for-profit entity operating four licensed clubs in Canberra offering dining, gaming, entertainment and sports. Last year it generated revenue of $33.5 million and after-tax income of $867,000.
Quest Apartment Hotels was founded 27 years ago by Paul Constantinou. Last year Mr Constantinou sold a 20 per cent stake in the business to The Ascott Limited for $28.8 million.