/UEM Sunrise sells Aurora Tower serviced apartments to Scape for $125m

UEM Sunrise sells Aurora Tower serviced apartments to Scape for $125m

“We look forward to sharing this magnificent mixed use development pioneered by UEM Sunrise,” Scape Australia chief executive Stephen Gaitanos said.

The sale, brokered by Colliers International’s Trent Hobart, was a good save for UEM Sunrise which would now be able to move onto other development opportunities in Australia.

In September, both UEM Sunrise and Ascendas Hospitality Trust walked away from the deal after not being able to resolve several “issues relating to the specifications and the condition of the property”.

UEM Sunrise’s Aurora Melbourne Central. Supplied

At the time, UEM said it had already fielded new interests in buying the apartments at its $800 million 88-storey Aurora tower, due to complete by the end of this year.

The terminated transaction came shortly after UEM Sunrise put its Zaha Hadid-designed Mayfair apartment project on St Kilda Road on the market following an apartment sales slump. It had sold about 40 per cent of the 152 units.

The Aurora tower at 224 La Trobe Street in the Melbourne CBD also has 959 sold private apartments, all of which were not far from being fully settled.

The deal was also a big win for Scape, fresh from its circa $700 million acquisition of Blue Sky Alternative Investments and Goldman Sachs’ Atira joint venture that bulked up its student digs holdings, to be used to seed its new $1.5 bilion student accommodation fund backed by Allianz Real Estate and AXA Group.

The group, was now eyeing its next acquisition, another big name in student accommodation, Urbanest.