To be named Citadines Walker North Sydney, 88 Walker Street will be redeveloped as part of a 48-storey integrated development which will also offer office and retail components.

The sale was made through the Ascott Serviced Residence Global fund (ASRGF), its global fund with Qatar Investment Authority (QIA).

According to the company, Citadines Walker North Sydney will cater to business and leisure travellers at the epicentre of North Sydney’s commercial, retail and entertainment hub.

To be completed in 2021, the building will provide 252 apartments and facilities including a restaurant, rooftop bar, meeting rooms, executive lounge and gymnasium while more than 130,000 square metres of net lettable office space will be added to the existing supply.

At a glance:

• Leading Singapore serviced-apartment investment business buys freehold in North Sydney for $202.2 million
• The property will be redeveloped to provide 252 apartments, business facilities and gymnasium with more than 130,000 square metres of net lettable office space added to current supply
• The redevelopment will create the tallest tower in North Sydney and is expected to be completed in 2021

 
The Ascott Limited is a Singapore company which has grown to become one of the leading international lodging owner-operators with a portfolio spanning more than 180 cities in over 30 countries in Asia Pacific, Central Asia, Europe, the Middle East, Africa and the USA.

A wholly owned subsidiary of CapitaLand Limited, Ascott pioneered Asia Pacific’s first international class serviced residence with the opening of The Ascott Singapore in 1984.

The news of the North Sydney purchase came at the same time the company announced the acquisition and signing of 13 other management and franchise contracts across China, France, Indonesia, Kenya and Vietnam.

According to the company, the 14 new properties offer more than 2,200 units, adding to the more than 10,600 units already secured this year.

Ascott’s CEO, Mr Kevin Goh, said the latest acquisition in Australia was in line with the company’s strategy of growing its fund management portfolio through private equity funds, joint ventures and listed hospitality trusts.

“We believe in achieving scale in the business, and fund management is central to the active capital management strategy of Ascott as a dominant lodging real estate player,” Goh said.

“Ascott enjoys deep presence in many key gateway cities, across various lodging segments, from serviced residences, hotels, co-living apartments to leasing apartments.

“This provides a ready pipeline of assets like Citadines Walker North Sydney for capital deployment.

“We have an established owner-operator track record of creating value through sound asset management strategies as well as delivering robust and attractive risk-adjusted returns for our investors.

“Together with our capacity to co-invest with like-minded capital partners such as QIA, it gives us the ability to stay invested in quality assets for the long term.”

Mr Goh also said that the recent proposed combination of its two hospitality trusts, Ascott Residence Trust and Ascendas Hospitality Trust, would cement Ascott Residence Trust’s position as the largest hospitality trust in Asia Pacific. 

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