Ascendas Buys $120m Worth Of Apartments

Market Insights
8 years ago
3 minutes

Leading Malaysian property developer UEM Sunrise has today signed an agreement with Ascendas Hospitality Trust to sell the serviced apartments component of the La Trobe Street mixed-use development, Aurora Melbourne Central for AUD$120 million.

The serviced apartments component will comprise 252 serviced apartments located on levels 10 to 32 of Aurora Melbourne Central along with common facilities for guests located on level nine and a restaurant on the ground floor.

Aurora Melbourne Central mixed-use development is UEM Sunrise’s maiden project in Australia with a GDV of AUD$770 million.  The construction of the project has commenced, with the official ground-breaking ceremony held on 21 September 2015. Completion of Aurora Melbourne Central is scheduled for 2019.

As the tallest building in Melbourne’s CBD, with an enviable location and unrivalled connectivity to transport networks, the 92-storey development comprises more than 120,000 square metres of built-up area and includes 941 residential apartments, signature retail spaces, strata offices as well as the 252-room serviced apartments.

Aurora Melbourne Central is located in the heart of Melbourne, which is a major corporate centre while also renowned for its extensive annual calendar of festivals, exhibitions and major sporting events. Upon completion, the development will have direct access to Melbourne Central Railway Station as well as Melbourne Central Shopping Centre across the road. The new CBD North station of Melbourne Metro will be located next to the project site. 

The development is also located within close proximity to renowned attractions such as Queen Victoria Market, State Library of Victoria, Royal Exhibition Building and the Melbourne Museum.

Mr.  Anwar Syahrin Abdul Ajib, UEM Sunrise’s Managing Director/Chief Executive Officer, said, “We are pleased to have inked this agreement with Ascendas Hospitality Trust for the Serviced Apartments at Aurora Melbourne Central.  It is a resounding win for UEM Sunrise and Ascendas Hospitality Trust, which enables both parties to create a sustainable business environment.  Ascendas Hospitality Trust has an impressive portfolio of hospitality assets in the Asia Pacific Region and we look forward to the Serviced Apartments at Aurora Melbourne Central becoming one of the Ascendas Hospitality Trust’s most significant assets.

“This is not UEM Sunrise’s first strategic collaboration with the Ascendas Group.  We are collaborating on a 60:40 joint venture with Ascendas Group to develop an integrated eco-friendly 519-acre Nusajaya Tech Park in Iskandar Malaysia, and Phase 1 is scheduled to be completed next year,” Mr. Anwar Syahrin added.

Mr. Tan Juay Hiang, Chief Executive Officer of the Managers, said, “We are very pleased that UEM Sunrise has offered us this rare opportunity to acquire a quality asset in an excellent location within the heart of Melbourne city. This will strengthen our foothold in a city which we believe will continue to be a key destination in Australia for business as well as leisure travellers. This property will enhance our existing portfolio and there may be potential synergy with our existing hotel in Melbourne – Pullman and Mercure Melbourne Albert Park. We believe this acquisition can also create value for our stapled security holders as it is expected to be accretive to distribution per stapled security.


“We are happy to work with UEM Sunrise, which has a strong track record of delivering quality products. We are confident that the Aurora Melbourne Central will be a success and happy to be part of this iconic landmark. This transaction marked another successful collaboration between the Ascendas and UEM Sunrise groups and will serve to deepen the relationship between the two groups.”