Blue Sky Private Real Estate has sold the management rights to Southport Central on the Gold Coast to Mantra Group for an undisclosed sum.
Since entering the accommodation market in 2013, Blue Sky Private Real Estate has enjoyed rapid growth in property management rights, amassing more than 2,000 rooms across Australia.
Blue Sky Private Real Estate investment director Andrew Lee said the sale to Mantra Group was a key part of Blue Sky’s accommodation strategy.
“Our strategy in this sector over the past few years has been to accumulate high yielding management contracts in favourable locations with upside rental and let pool potential. We purchased the Southport Central asset in 2014 following the announcement of a number of infrastructure projects in the local area and have since added a number of rooms to the let pool and driven rental growth in the backdrop of a growing Gold Coast market,” Mr Lee said.
“Mantra Group, a sector leader in the accommodation industry, was a standout choice for our sale of the asset, and provides a great outcome for our investors.”
Mantra Group CEO Bob East said the acquisition was in line with Mantra Group’s strategy to selectively grow its permanent rental business. The addition of the upmarket Southport Central is well timed to coincide with strong residential market conditions in the lead up to the Gold Coast 2018 Commonwealth Games.
“We’re very excited about this acquisition as it will open up additional growth prospects in the permanent rentals sector,” Mr East said.
“Southport Central is not only complementary to our existing portfolio, but also reinforces the strong momentum in our organic growth strategy and consistent ability to convert our pipeline.”
The $700 million Southport Central project was developed by high profile Gold Coast developers the Raptis Group between 2006 and 2009 and comprises 788 stylish and contemporary residential apartments across three towers.
Two outdoor pools, an indoor pool, spa, saunas, steam room, two gymnasiums, multiple entertaining areas and secure basement car parking as well as access to Southport’s central business district, Broadwater Parklands and public transport are also offered by the property.
Mantra Group’s acquisition of Southport Central is scheduled to settle on 31 August 2016 (subject to usual conditions).
Blue Sky Private Real Estate is a division of Blue Sky Alternative Investments (ASX:BLA).
