AFR Tuesday 14th August 2018
Diversified property group Pellicano has extended its partnership with Quest after securing the serviced apartment group as operator of three new hotels in mixed-use projects in Preston in Melbourne, Geelong and Robina on the Gold Coast.
Quest is already the operator of Pellicano-developed hotels in Woolloongabba and Dandenong. It will also operate a new 77-room hotel in Ballarat as part of the developer’s mixed-use redevelopment of Ballarat Station.
The four new projects offering 328 hotel rooms and 99 residential apartments have a combined end value of $182 million and are due for completion in 2020. They will take Pellicano’s Quest holdings to 555 rooms.
Quest, which is 80 per cent owned by Singapore serviced apartment group The Ascott Limited (a subsidiary of real estate giant CapitaLand) is the country’s biggest operator of serviced apartment hotels. Last November, Quest announced plans to open its first British hotel in Liverpool in 2019.
“The newest deals with Quest will take our relationship to eight projects over the past decade,” said Pellicano managing director Nando Pellicano. “The mixed-use nature of Quest’s offering combined with our residential apartments is a complementary offering and gives us the opportunity to value-add by forming agreements with Quest to offer hotel-like services to the residential occupants in the building,” he added.
Quest founder and chairman Paul Constantinou, who recently took over the running of the company after the departure of CEO Zed Sanjana, said he was excited to further cement the relationship with Pellicano. “We look forward to providing greater apartment-style accommodation for our corporate and leisure travellers, in locations where our customers need to be,” Mr Constantinou said.
The family-run Pellicano group has completed $2.6 billion in developments since 2000 across residential, commercial, industrial and retail sectors.
Projects under construction include a 140-apartment tower in Brisbane’s $700 million South City Square and Alke, featuring 83 boutique apartments in Oakleigh, Melbourne.