CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited (Ascott) – the world’s largest international serviced residence owner-operator, has entered into a strategic partnership with Quest Serviced Apartments (Quest) – the largest serviced apartment provider with 112 properties in Australia.

Ascott expects to invest up to AUD500 million (S$560 million) to acquire new properties that Quest will secure for its franchise in Australia over the next five years. Ascott will have a right of first refusal to acquire the properties sourced by Quest. Quest will then provide a lease for the properties, which will be operated under franchises using the Quest brand.

In addition, Ascott has signed an agreement to acquire a 20% stake in Quest for AUD28.8 million (S$32.3 million). As part of the agreement, Ascott has the option to increase its stake in Quest to 30%. In a separate agreement with Quest, Ascott’s real estate investment trust, Ascott Residence Trust (Ascott Reit), will acquire three operating serviced residences in Greater Sydney from Quest for AUD83 million (approximately S$93 million). Quest Sydney Olympic Park, Quest Campbelltown and Quest Mascot will continue to be operated under franchises using the Quest brand.

In Australia, Ascott currently operates five serviced residences with more than 670 apartment units. Quest has around 150 properties with over 8,000 existing units in Australia, New Zealand and Fiji, and a further 1,500 units under construction.