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INTRODUCTION
AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
CONTENTS
Introduction
Executive Summary
Opportunity Overview
Property Description
Location
Investment Highlights
About the Developer
Market Overview
Plans
Sales Process
Contacts
Aire Serviced Apartments presents the
accommodation operator with an outstanding
opportunity to secure prime position in burgeoning
West Perth, a major entertainment, dining and
sporting hub on the CBD fringe.
This quality 64-key boutique hotel is located on
levels 1 – 4 of the landmark 22-level mixed use
Aire West Perth tower being developed on a prime
Murray Street site by Western Australia’s foremost
apartment developer, ASX-listed Finbar Group
Limited.
Offered for sale in one line are 64 stylish, strata
titled studio apartments, with exclusive use of a
ground floor lobby, office and associated amenities,
two dedicated lifts, a conference room with kitchen
and bathroom facilities and dedicated undercover
parking.
Guests will enjoy access to resort-style facilities
including a 22m heated lap pool, gym, sauna,
cabana lounge, barbecue areas and outdoor dining
areas, all elevated on level 4.
Perth is an exciting market undergoing a massive
transformation with billions of dollars of investment
in infrastructure projects, while Australia’s
international and domestic visitor markets are
showing strong growth.
Close proximity to both the CBD and key leisure
and entertainment facilities affords access to dual
corporate and leisure/tourist markets – a strategic
investment and the perfect place to stamp your
brand and build your accommodation portfolio.
Rare opportunity to secure a quality 4.5-star
boutique hotel off-the-plan, gaining prime position in
a dynamic city undergoing exciting transformation
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EXECUTIVE SUMMARY
AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
PROPERTY ADDRESS
659 Murray Street, West Perth
Western Australia, 6005
NUMBER OF SERVICED
APARTMENTS
60 Studio Apartments
4 Accessible Studio Apartments
SITE AREA (M2) 3,410m2
TOTAL BUILDING
AREA (M2)
35,873m2
TOTAL SERVICED
APARTMENT AREA (M2)
4,145m2
CAR PARKING
64 Car Bays (1 for each Studio Apartment,
includes 4 Accessible Bays)
1 Serviced Apartment Manager/Servicing bay
INTERNET NBN Ready Development
EXCLUSIVE USE AREAS
Multi-Purpose Conference Room
Kitchen Facilities
Bathroom Facilities
Designated Lobbies and Lifts
Housekeeping Room / Attendant Store
Total Area 897m2
SHARED FACILITIES
22m Solar Heated Pool
Fully Equipped Gymnasium with TV
Sauna
Cabana Lounge
Cabanas
BBQ and Outdoor Dining Facilities
Total Area 1,264m2
BUILDING SIGNAGE
Opportunity for Prominent
Building Signage
EXPECTED
COMPLETION
Mid 2018
NETT PROFIT $1.9m after all costs in year 3
EXPRESSIONS
OF INTEREST CLOSE
Monday 7th
November 2016
64 individually strata titled studio apartments
with balconies, supported by extensive amenities,
back of house facilities and dedicated services
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AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
OPPORTUNITY OVERVIEW
AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
Make your mark at this brand new freehold
boutique hotel in vibrant West Perth
The new 4.5-star Aire Serviced Apartments hotel
presents an excellent opportunity for a boutique or
branded accommodation operator to gain position
or expand in the Perth market with prime location
on the CBD fringe, close to Perth Arena, key tourist
attractions and large-scale corporate headquarters.
Invest in and brand this quality 64-key boutique hotel
to make your mark as the owner-operator, enjoying
robust returns and strong growth potential.
The property is being developed on a prime 3,410m2
site in Murray Street, West Perth by Western
Australia’s largest and most trusted apartment
developer, ASX-listed Finbar. Construction completion
is anticipated by July 2018.
The 64 individually strata titled apartments (33 –
42m2
) with balconies are offered in one line. They
will occupy levels one to four of the Aire West Perth
mixed-use tower, with 178 residential apartments
above and two commercial premises at ground level.
Included on title are 65 parking bays which, due to
the short-term occupation zoning and prime location,
offer an additional income stream.
Exclusive use areas totaling 897m2
include a
multi-purpose conference room, kitchen facilities,
bathroom facilities, designated lobbies and lifts, and
housekeeping room / attendant store.
Guest facilities (shared with residential apartments),
located on level 4, include a 22m solar heated pool,
fully-equipped gymnasium, sauna, cabana lounge,
barbecues and outdoor dining area.
Off-the-plan purchase at this early stage will allow the
owner-operator to have input into the interior design
and fitout, to achieve an individual and distinctive
style that fits with your brand standards and
operational requirements.
Detailed profit and loss projections have been
prepared by specialist industry accountants Holmans
and are available for perusal. They show a projected
net profit of $1.9 million by year 3 (in normal market
conditions based on industry averages for the area).
NET PROFIT $1.9M (projected in year 3)
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PROPERTY DESCRIPTION
AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
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AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
Aire Serviced Apartments is a unique
proposition with key points of difference
to underpin your investment
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LOCATION
AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
Located at 659 Murray Street, West Perth, Aire
Serviced Apartments harnesses the local amenities
that the suburb has to offer, such as unique cafes,
bars and restaurants, as well as being well situated
to public transport, entertainment facilities and
employment hubs.
Positioned only blocks from the Perth CBD
and walking distance to the Perth Arena, the
development is well-placed to drive major corporate
and leisure markets.
Interstate and overseas corporate market attractors
are enhanced through close proximity to major
corporate enterprises, including at Central Park
Tower (Rio Tinto, ASX, Inpex and BT Financial Group),
Brookfield Place (Deloitte, BHP Billiton and PwC),
108 St Georges Terrace (Bankwest and Norton
Rose Legal), QV.1 (Chevron, Worley Parsons, BP
Developments, King Wood Mallesons and Allens),
Exchange Tower 2 (Morgan Stanley, Patersons
Securities, Mitsubishi, Mitsui and Ashurst), as well
as State Parliament House and Government House.
Significant infrastructure and development continues
to transform the Perth CBD and surrounding areas
with Aire benefiting from landmark projects such
as Elizabeth Quay, Perth City Link, Yagan Square,
Perth Arena, and the Perth Convention Centre, all
designed to increase accessibility and encourage
interstate and overseas tourism and corporate
visitation.
A recent wave of CBD retail and food and beverage
offerings reflect the city’s resurgent position as the
premier entertainment precinct in WA.
Public transport is immediately available with free
CAT bus services located in front of the building
on Murray Street and the West Perth train station
is less than 500m from the site. The development
falls within the Transperth Free Transit Zone and
also provides excellent access to the northern and
southern areas of Perth via the close proximity to
freeway entrances/exits.
Significant new infrastructure and
development continues to transform
Perth CBD and surrounding areas
AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
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7. 1312
Located at 659 Murray Street, West Perth,
Aire Serviced Apartments harnesses the local
amenities that the suburb has to offer, such
as unique cafes, bars, and restaurants, as
well as being well situated to public transport,
entertainment facilities, and employment hubs.
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INVESTMENT HIGHLIGHTS
ROBUST NET PROFIT & CAPITAL GAINS
Enjoy a robust net profit $1.9 million (projected yr 3) with freehold equity for
potential capital growth.
BUILD BUSINESS AND BRAND
A strategic boutique hotel investment ideally placed to gain position or expand
your footprint and build your brand.
LOCATION ASSURES MULTI-MARKET APPEAL
The location strongly aligns with both the corporate and leisure markets – walking
distance to the CBD and Parliament House, close to Perth Arena, WA’s landmark
home of live entertainment, music and sports, and with easy access to City Link
and key attractions, the Swan River, Kings Park, Elizabeth Quay, Northbridge,
Subiaco and Leederville.
EARLY INPUT MAKES FOR A PERFECT FIT
Involvement at pre-construction / construction stage will allow the operator to
provide valuable input on interiors and fitout to achieve a unique hotel experience
and ensure the hotel is a perfect fit from both branding and operational
viewpoints.
FEATURES TO SET YOU APART
Including 65 dedicated car bays and access to an extensive range of lifestyle
amenities that are unmatched in this market, Aire Serviced Apartments is a
unique proposition with key points of difference to enhance your product offering.
ADDITIONAL INCOME STREAM
The 65 parking bays included on title, due to the short-term occupation zoning and
prime location, offer an additional income stream.
FUTURE FLEXIBILITY
A potential future positive exit strategy and ownership structure provides extra
flexibility. Apartments are individually strata titled, which would allow for future
on-sale to investors. Further, after the mandated 10-year period of Serviced
Apartment use expires, a change to Residential use (subject to City of Perth
approval) is possible. With 16 apartments per floor, all 64 units or tranches of
16 could be converted, providing an effective and staged approach to maximise
returns through value capture and achieve an orderly disposal.
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AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
ABOUT THE
DEVELOPER
Finbar Group Limited is Western Australia’s
largest and most trusted residential
apartment developer, with over 4,900
apartments completed to date. In 1995,
Finbar listed on the ASX (code: FRI) and
launched its first development in South Perth.
With a 100% delivery track record on all of
its apartments, Finbar is looking to continue
to grow its business into the future with over
a $2 billion development pipeline. Since the
year 2000, Finbar has contributed to 29% of
the built apartments in Inner Perth.
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MARKET OVERVIEW
The Australian hotel investment
market continues to be one of the
most attractive globally
The Australian hotel investment market is extremely
buoyant, with the appetite for hotel assets strong on
the back of international and domestic visitor growth,
a lower Australian dollar, major tourism marketing
initiatives and a healthy development pipeline.
2015 saw record-breaking international and
domestic visitor activity nationally, in terms of both
arrivals/trips and spending. According to Tourism
Research Australia’s Tourism Investment Monitor
July 2016, Western Australia is benefiting from
an exciting $7 billion tourism investment pipeline
divided between the accommodation (27%), aviation
infrastructure (28%) and arts, recreation and
business (45%) sectors.
Strong trading fundamentals are anticipated to result
in ongoing supply growth in the short to medium
term. But, while it is true to say Perth is set for a
period of supply growth, a high proportion of new
hotels are pitched at the upscale and luxury end.
This bodes well for the mid-scale boutique market,
particularly at a time when interest in boutique hotels
is significant. Investors keen to enter the market,
as well as established operators, are expanding and
developing new concepts to compete in this exciting
sector.
Boutique hotels have evolved from a small niche
sector to become a recognised hotel category for
developers, owners, operators and investors. Driving
this growth are changing consumer preferences,
a significant demographic shift, and digital
engagement.
Guests are becoming more aware of design,
appreciating bespoke, personalised service, and
increasingly seeking out unique experiences.
Importantly, from an investment perspective,
boutique hotels attract a clientele that is more
focused on enjoying the experience of staying at a
‘different’ hotel than those who simply shop for the
best price.
That said, on price, Perth is performing very well.
According to STR Global, it achieved a 2015 RevPAR
of $161, which is second only to Sydney. The
Perth market commands strong demand from the
corporate, domestic leisure and inbound segments,
so ADR is anticipated to increase at least by CPI
regardless of supply growth.
TOTAL YE JUN15 YE JUN16 YEAR % CHANGE 3 YEAR AVG GROWTH
Spend ($M) 3,730 3,873 +3.8% 3.4%
Visitors 4,063,600 4,732,300 +16.5% 8.9%
Nights 34,745,000 35,629,000 +2.5% 3.9%
PERTH TOURISM AREA – ‘EXPERIENCE PERTH’ OVERNIGHT VISITATION SUMMARY
Source: Tourism WA, Fast Facts September 2016
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SALES PROCESS
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AIRE SERVICED APARTMENTS - INFORMATION MEMORANDUM
CONTACT US
OFFERING
The freehold and leasehold assets of Aire West
Perth serviced apartments are offered off-the-plan
in one line.
SALE TYPE
Offers are invited via Expressions of Interest.
Interested parties must complete an ‘Expressions of
Interest’ form to be provided by the agents.
MARKETING AGENTS
Glenn Millar of Resort Brokers Australia and Steve
Dawson of Australasian Business Sales have been
appointed as the exclusive agents.
ENQUIRY
All enquiry is to be directed via the exclusive agents.
CONFIDENTIALITY
All interest parties will be required to complete
confidentiality agreements and/or privacy statements,
to be provided by the agents.
INSPECTIONS
Site inspections are strictly by appointment and can
be arranged by contacting the agents.
DATA ROOM
Qualified parties will be provided confidential access
to a data room containing more detailed information.
DUE DILIGENCE
Interested parties are encouraged to conduct
appropriate due diligence during the Expressions of
Interest period.
CONTRACTS
Copies of the contracts for sale can be provided by
the agents on request.
DISCLAIMER: The contents of this document are for information purposes only and while reasonable care has been taken in its preparation, the seller or any
agent does not guarantee or warrant the accuracy, reliability, completeness or currency of the information or its usefulness in achieving any purpose. Any
dimensions, layout, design features, views, areas, plans, photographs and artist’s impressions contained within this document are for presentation purposes
and indicative only. They should not be relied upon as an accurate representation of the final product. Any such information may change. While the seller and
seller’s agent have prepared this document with care and believe the forecasts and estimates within it to be reasonable, the seller and seller’s agent do not
accept responsibility for any action taken in reliance on the information contained herein. Prospective purchasers should make their own enquiries and take
appropriate accounting, legal, taxation or investment advice regarding their own particular circumstances. The seller will not be liable for any loss, damage,
cost or expense incurred or arising by reason of any person using or relying on the information in this document. This document is not an offer to sell nor does
it form part of any contract of sale.
EXPRESSIONS OF INTEREST CLOSE
7TH
NOVEMBER, 2016
STEVE DAWSON
AUSTRALASIAN BUSINESS SALES
M: 0408 550 441
E: steve@abs-info.com.au
GLENN MILLAR
RESORT BROKERS AUSTRALIA
M: 0412 277804
E: glennmillar@resortbrokers.com.au
