Modest capital gain from Quest held nine years
A Singaporean syndicate has made only a modest capital from a north Adelaide serviced apartment complex held nine years.
Quest Mawson Lakes collected $18.5 million following a marketing campaign launched five months ago.
It failed to sell after another campaign, with a different agency, last year.
The seller paid $18m in April, 2016 – an eight per cent yield.
This time around, based on the rent when it hit the market, Quest Mawson Lakes is trading on a 9.6 per cent net passing yield. The buyer is a private investor.
Higher yield
With four street frontages, Quest Mawson Lakes at 33-37 Main Street, commonly known as 3 Metro Parade, contains 66 suites, offices and retail; the lettable area is 6069 square metres.
Quest – which took occupancy when the complex was developed in 2009 – is on a 10 year lease expiring 2034, contributing to 86 per cent of the income.
JLL marketing agents, Jack O’Leary, Ben Parkinson and Nick MacFie, said more than a hundred defence and technology related jobs in the area – contributing to 95pc of guests taking extended stays.
Also with the non-hotel components, including a tenancy occupied by Domino’s Pizza, the weighted average lease expiry is 7.95 years.
The site spreads 2467 sqm walking distance to Mawson Lakes Interchange and amenity including a supermarket and gym.
Mawson Lakes is about 15 kilometres from town.
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