UEM Sunrise Bhd sells Melbourne apartments

UEM Sunrise Bhd sells Melbourne apartments

PETALING JAYA, Dec 4: UEM Sunrise Bhd is selling the serviced apartments component of its Aurora Melbourne Central development in Australia to Ascendas Australia Hotel Trust (AAHT) for AU$120 million (RM370.8 million).

In a filing with Bursa Malaysia yesterday, UEM Sunrise said its wholly-owned subsidiary UEM Sunrise (La Trobe Street) Pty Ltd (UEMS LaTrobe) has entered into a contract of sale with the Trust Company (Re Services) Ltd (TCL) as trustee for AAHT, for the disposal by UEMS LaTrobe.

The disposal includes 252 units of serviced apartments on levels 10 to 32 of Aurora Melbourne Central along with common facilities on level nine and a restaurant on the ground floor with a total gross floor area of 14,924 sq m.

The cash consideration was agreed upon after taking into consideration the market value of the property, its overall zoning plan as well as the existing surroundings and facilities. UEMS LaTrobe acquired the land in October 2013 for AU$43.15 million (RM131.232 million).

Launched in October 2014, Aurora Melbourne Central is a 92-storey mixed-use development comprising 941 residential apartments, retail and office space, car parks and the 252 serviced apartments with a gross development value of AU$770 million. It is UEM Sunrise’s maiden project in Australia.

The project is to be developed by UEMS LaTrobe on 3,197 sq m of freehold land located on La Trobe Street in Melbourne. The project is expected to be completed by the end of 2019.

UEM Sunrise said managing hotels and/or serviced apartments is not the core business of UEMS LaTrobe and the proposed disposal would allow it to focus its resources on marketing and selling its other Melbourne-based projects such as Conservatory, a residential development in Mackenzie Street and a new development on 412 St Kilda Road.

“AAHT on the other hand, is an expert in its field having portfolio comprising 11 quality hotels with over 4,100 rooms geographically diversified across key cities in Australia, China, Japan and Singapore,” it said.

Hotels in AAHT’s portfolio include Pullman Sydney Hyde Park, Park Hotel Clark Quay in Singapore, Novotel Beijing Sanyuan in China and Hotel Sunroute Ariake in Japan.

“AAHT undertakes to engage an operator to operate the subject property at a standard that is not lower than four-star as stipulated under the contract of sale,” it added.

The proposed disposal is expected to contribute to the earnings of UEM Sunrise Group for the financial year ending 2019 estimated at AU$26.95 million or RM83.27 million. UEM Sunrise plans to use the proceeds to fund future projects in Melbourne, especially the project at 412 St Kilda Road.

The proposed disposal is expected to be completed by Sept 30, 2019.

— THE SUN

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