A block of serviced apartments within Scarborough’s Quest Hotel has been listed for sale, providing a securely leased investment opportunity in the popular beachside suburb.
CBRE’s Ryan McGinnity and Derek Barlow have been appointed to manage the sale, which involves 11 strata apartments – representing 14 of the hotel’s 52 keys.
Located in the coveted southern pocket of Scarborough Beach, 14km north-west of the Perth CBD, the block of strata rooms totals 773sqm and comprises a mix of configurations – from 36sqm studios through to 126sqm, one-bedroom apartments. All are leased to Quest, Australia’s leading serviced apartment operator, until 2033.
Expressions of Interest close on the 8th of September 2022.
With an annual income of approximately $313,600, interest is expected from local and national investors seeking a securely leased asset with lease options until 2043.
“Post the COVID-19 pandemic, Perth has gained significant attention for both interstate and international travel, with hotel occupancy rates hitting over 68% as of June 2022. With international borders having reopened earlier this year, we expect to see the pre-pandemic occupancy rate of 74% return within the near future,” Mr. McGinnity said.
The property is expected to benefit from both leisure and corporate travel due to its position on Perth’s most popular tourist beaches and precincts, with ease of access to the CBD, Osborne Park, and Herdsman Business Districts.
“The recently completed $130 million foreshore revitalisation project has added appeal to the precinct. New amenities include the Scarborough Beach pool, a beachfront amphitheater, a range of public open spaces, and a variety of new restaurants and cafés,” Mr. Barlow noted.