Ascott checks into Quest Apartments

Quest Sydney Olympic Park

Ascott will have a right of first refusal to acquire the properties sourced by Quest. Quest will then provide a lease for the properties, which will be operated under franchises using the Quest brand.

CapitaLand’s serviced residence unit, The Ascott Limited - the world’s largest international serviced residence owner-operator, has entered into a strategic partnership with Quest Serviced Apartments – the largest serviced apartment provider with 112 properties in Australia.

Ascott expects to invest up to A$500 million (S$560m) to acquire new properties that Quest will secure for its franchise in Australia over the next five years. 

Ascott will have a right of first refusal to acquire the properties sourced by Quest. Quest will then provide a lease for the properties, which will be operated under franchises using the Quest brand.

In addition, Ascott has signed an agreement to acquire a 20% stake in Quest for A$28.8 million (S$32.3m). 

As part of the agreement, Ascott has the option to increase its stake in Quest to 30%.

In a separate agreement, Ascott’s real estate investment trust, Ascott Residence Trust, will acquire three operating serviced residences in Greater Sydney from Quest for $83 million (approximately S$93m). 

These are Ascott Reit’s maiden acquisitions in New South Wales.

They will continue to be operated under franchises using the Quest brand.