international sporting events such as Barclays Asia Trophy, FINA Swimming World Cup 2015, BNP
Paribas WTA Finals Singapore and ASEAN Para Games happening throughout the year, we remain
cautiously optimistic of the performance of our properties in 2015.
The redevelopment of Somerset Grand Cairnhill Singapore, which the Group has divested in 2012
and subsequently in 2013 entered into a sale and purchase agreement to acquire upon completion,
is currently underway and is expected to be completed in 2017.
Australia
4 Properties 397 Units
S$’million
Total Revenue (2014)
5.9
Total Gross Profit (2014)
2.5
Valuation as at 31 December 2014
119.2
Following Ascott Reit’s maiden acquisitions in Greater Sydney in December 2014, it now owns four
serviced residence properties in Australia. The 85-unit Citadines St Georges Terrace Perth is
conveniently located in Perth’s Central Business District. The 140-unit Quest Sydney Olympic Park is
located in the heart of Sydney Olympic Park, near ANZ Stadium and Allphones Arena, a large
entertainment and sporting complex. The 81-unit Quest Campbelltown is well located in south-west
Sydney’s urban hub, an established residential, commercial and industrial area with plenty of
restaurants near the property while the 91-unit Quest Mascot is a five-minute drive from Sydney
Airport and a 15-minute drive from Sydney’s Central Business District.
The average length of stay at our properties in Australia is less than one month.
Gross Rental Income
(S$’000)
Agreed
Property
Value
(S$’million)
FY 2014 FY 2013
Citadines St Georges Terrace Perth
5,483
4,957
36.1
Quest Campbelltown
1
104
–
21.3
Quest Mascot
1
134
–
26.9
Quest Sydney Olympic Park
1
202
–
44.8
Revenue Per Available Unit (S$)
FY 2014
FY 2013
Citadines St Georges Terrace Perth
172
157
2014 Review
According to EIU, Australia’s economy recorded a GDP growth of 2.9% in 2014, with energy and retail
sectors as the largest contributors. The hospitality and tourism sectors saw recovery in both
international and domestic arrivals as AUD weakened against the currencies of most other key
tourism market. According to Tourism Research Australia, there were 6.8 million visitor arrivals into
Australia for the year ended September 2014, an increase of 8.2% year-on-year (YoY). This has
improved price competitiveness and curtailed some of the spending leakages to outbound tourism.
On the back of a stable economy coupled with improving operating fundamentals in the hospitality
sector, it was an opportune time to scale up our presence in Australia with the successful acquisition
of three serviced residences in Greater Sydney in 4Q 2014.
1 The property was acquired on 10 December 2014.
Pursuing Growth | 65
