GOLD Coast resorts and hotel operator Mantra Group is morphing into a residential property management player after buying the management rights for 1500 new apartments being developed across seven residential towers in inner Brisbane by developer Metro Property Development.
The first stage of the portfolio of 710 apartments are due for completion and settlement this year.
Mantra CEO Bob East did not reveal the value of the deal, which is subject to certain conditions, but said the move was “well aligned to our operating expertise and growth aspirations”.
“As Australia’s largest owner of management and letting rights businesses, Mantra Group has developed unrivalled expertise in the management of large-scale strata title buildings,” he said.
“The idea of adding Metro’s seven high-quality developments to our existing portfolio is a compelling opportunity.”
The move comes as Mantra, which has been on an acquisition spree, last year announced it would expand into purchasing hotels to leverage its expertise in hotel management rights.
Metro managing director, Luke Hartman, said the sale was in line with its strategy of not retaining management rights in its developments.
“Metro’s main focus is on the development, sales and marketing and construction of projects. The sale of management rights is part of our overall strategy, which enables us to focus on what we do best and move on quickly to the next project,” Mr Hartman said.
Mr Hartman said a large portion of the apartments in the developments in inner city Fortitude Valley and Newstead have been purchased by investors who are keen to tap into Brisbane’s rental market and high demand for new inner-city apartments.
“Brisbane’s inner-city, particularly Fortitude Valley and Newstead, is experiencing significant rental demand. We have seen a high level of interest from local, interstate and overseas investors who can see significant opportunity in this area of the market,” Mr Hartman said.
Tim Crooks from Resort Brokers Australia, who brokered the deal, said Mantra had beaten some of the best operators in the accommodation industry to secure the rights.
“It was an extremely competitive process and after a lengthy interviewing process with the top three bidders, Mantra Group emerged as the successful party,” he said.
Shares in Mantra closed 6¢ higher at $4.15.
Originally Published On: http://www.goldcoastbulletin.com.au/