Deal Corp is selling 34 serviced apartments in one line at its Arkana development at Dandenong in Melbourne’s south-east.
Deal Corp is selling 34 serviced apartments in one line at its Arkana development at Dandenong in Melbourne’s south-east with expectations of circa $10 million representing an attractive yield of 7 percent.
The apartments, which are being marketed by Expressions of Interest through Savills Director, Julian Heatherich, with Benson Zhou and Jesse Radisich, are fully leased to national hotel operator Punt Hill at a total annual income of $723,236.
Mr Heatherich said the unique investment offered significant benefits over a typical apartment investment.
“This offering provides investors with 34 fully furnished apartments leased to the Punt Hill Group at fixed rental costs with annual CPI increases, rent is not linked to occupancy or vacancy, assuring investors of dependable annual gains, with returns well above residential apartment rates, together with good depreciation benefits from a modern building.
“It’s quite an unusual and extremely attractive investment opportunity and one which is underpinned by a high growth location undergoing significant gentrification and government backed investment in Dandenong’s CBD,” Mr Heatherich said.
He said the lease was on each apartment specifically and was not dependent on group revenues or any other form of pooled income or profit share. He said owners could use apartments up to 14 days annually.
Purpose designed by Hayball Architects, Arkana comprises an eight-storey building with ground floor retail space, office accommodation, serviced apartments, and conferencing, meeting, dining and recreational facilities.
Punt Hill has more than 14 properties and has been operating in Melbourne’s premier serviced apartments and custom designed hotels market for 25 years.
Mr Zhou said the number of serviced apartments had surged by more than 300 percent, making it the fastest-growing category of tourist accommodation in Melbourne.
He said the property’s key attributes included:
- Long term lease to Punt Hill Group
- Rental income is not linked to occupancy or vacancy assuring investors of dependable annual gains
- Brand new building with strong depreciation benefits
- Favourable corner position maximising natural light and amenity
- A strong occupancy attributed to a host of lifestyle and retail amenity and surrounding corporate headquarters
- Lease are on each apartment specifically and are not dependent on group revenues or any other form of pooled income or profit share
- Owners can use apartments up to 14 days annually
Expressions of Interest close Wednesday, July 5 at 2pm.
Learn more about Savills CBD & Metropolitan Sales services.