26 Jul 2016
Words Courier Mail

Aurora struck by arua of a Metro apartments deal

BRISBANE-based Aurora Group has finalised an unconditional deal for the management rights of three of Metro Property Development's apartment towers.

It is understood that Aurora will pay about $8.5 million for the management rights to 710 apartments across Metro's Newstead Towers, Broadway on Ann and Aqua at Newstead Central developments in Brisbane's inner city.

Metro marketing director Ken Woodley said the portfolio sale was in line with the company's strategy.

"Metro's main focus is on the development, sales and marketing and construction of projects." he said.

"The sale of management rights is part of our overall srategy which enables us to focus on what we do best and move quickly to the next project.

"This sale was (unusual) both for us and the market, in that it's one of the biggest management portfolios to hit the market in Brisbane."

Resort Brokers Australia national off-the-plan specialist Tim Crooks, who was the exclusive agent for the sale, said that an extensize national campaign had attracted widespread interest which had resulted in a competitve price being acheived for the portfolio. "It was an exremely competitive process with a number of offers submitted at record multipliers for off-the-plan, permanent-let management rights." he said.

"The purchase price of this management rights portfolio represents a 5.2x multiplier which is the highest result to settle for an off-the-plan residential development in Brisbane we have seen for over 30 years."

With about 1000 apartments over four towers to be built by 2018, Metro is expected to soon start another management rights sales process.

Mr Woodley said a portion of the apartments in the Newstead Towers, Broadway on Ann and Aqua were purchased by investors.

"Brisbane's inner city, particularly Fortitude Valley and Newstead, is experiencing significant rental demand," he said.

"Across our recently completed Newstead Towers and Canterbury Towers... we have recieved more than 1500 rental inquiries across these developments alone.

"We didnt expect to see similar demand for Aqua and Broadway on Ann in the coming weeks once the rental campaigns kick off."