Karim family snap up another east coast hotel

Quest Woolloongabba contains 98 serviced apartments and four shops.

Indonesia’s Karim family is a step closer to achieving its goal to establish a half a billion dollar east coast Australian hotel portfolio, picking up Quest Woolloongabba off-market.

Via Invictus Developments, which is headquartered in Singapore, the buyer is paying $48.3 million for the investment, with 98 serviced apartments, at 130 Logan Road.

Melbourne based Pellicano was the seller; it completed the complex nine years ago, replacing the Joe David Ford dealership.

McVay Real Estate’s Sam McVay was the agent.

The deal comes three months since Invictus picked up the Harbour Rocks Hotel, in Sydney’s The Rocks, for close to $40m.

That vendor, Robert Magid, the son of late developer and Twisties founder, Isador, is also from Melbourne.

Quest Woolloongabba

Invictus is led by Chayadi Karim, the son of Bachtiar, executive chairman of palm oil conglomerate Musim Mas, speculated to have a personal net worth of c$5.4 billion.

His grandfather, Anwar Karim, founded the Nam Cheong Soap Factory in Indonesia’s Medan 90 years ago (story continues below).

The family also established the Student Entrepreneur Centre at the University of North Sumatra.

The Woolloongabba asset derives 94 per cent of its income from Quest with the balance from four retail tenancies; the Weighted Average Lease Expiry is 12 years.

Near The Gabba, it is also configured with conference facilities, a gym and rooftop terrace (pictured, top).

“In line with our investment target in Australia, we are delighted to add Quest Woolloongabba to our hotel portfolio in Australia,” Chayadai Karim said.

“The hotel has an excellent growth story stemming from the 2032 Brisbane Olympics and its associated infrastructure…underpinned by a quality [anchor] tenant in Quest,” he added.

Elsewhere in the immediate area, local developer Sarazin recently outlaid $13.25m for a 2673 square metre block at 31-33 Wellington Rd, permit-ready for an 18 storey residential tower with 181 units.

Melbourne’s Mathieson family, meanwhile, three months ago snapped up the Woolloongbabba Hotel, part of a retail complex with a Coles and 18 specialty stores, and last March spent a speculated $7m for the suburb’s Red Brick Hotel leasehold.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of realestatesource.com.au.