‘Hot contest’ expected for Maribyrnong’s brand new Quest hotel

A newly built Quest hotel has hit the market in Melbourne and is expected to spark “a hot contest”. 

The Quest Maribyrnong at 2 Wests Rd with 45 serviced apartments, is up for sale after construction finished mid-last year.

It is being offered with a tantalising lease of 15 years and four further options of five years.

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The Quest brand is among the most recognised apartment hotels in Australasia, making the sale a particularly appealing prospect, according to Colliers International’s Daniel Wolman.

“With strong annual increases and a long-term lease to a global brand of this calibre, the marketing process is set to be inundated with enquiry and demand from investors all over Australia and Asia Pacific,” Wolman says. 

Quest Maribyrnong is positioned conveniently close to Melbourne’s CBD and other amenities.

“We expect to see interest from private family offices, syndicates, fund managers and private high-net worth investors both locally and offshore.”

He points to tightening yields across Melbourne for properties with top quality tenants, saying this will also contribute to the strong interest.

“In the climate that we are facing, assets such as this will return yields circa 6%, a unique opportunity for investors to park their money somewhere safe and ensure strong growth on their capital,” he says.

“We are therefore anticipating a hot contest.”

One of the apartments at Quest Maribyrnong.

Located 8km from the CBD, the property is situated in one of the fastest growing corridors in Melbourne. 

Nearby is Victoria University, the Royal Children’s Hospital, Royal Melbourne Hospital, Flemington Racecourse, Melbourne Showgrounds and the airport.

The complex was developed by the Orion International Group.

Reynolds Property’s Marcus Quinn says the newness of the property will appeal to ‘set and forget’ investors who can draw on its significant depreciation benefits.

“We rarely as agents have the opportunity to market a completely brand new product with no outstanding capital expenditure requirements – so this is a really standout asset,” he says.

Expressions of interest close May 30.