Oaks secures Rivermarque rights
HOTEL group Oaks Hotels and Resorts has been awarded the management rights for the $40 million Rivermarque project in Mackay.
Reed Property Group managing director Ken Reed said Oaks' business model and expertise in handling management rights was the perfect fit for Rivermarque.
"Rivermarque apartments are proving very popular with investors and, given the ongoing demand for short-term accommodation in Mackay and the high returns this brings, Oaks' strong track record in this type of accommodation will be a great asset for apartment owners," Mr Reed said.
Oaks Hotels and Resorts founder and chief executive Brett Pointon said the sale marked an important milestone in what is a long-running relationship with Reed Property Group.
"While this is the first set of management rights we have purchased from Reed Property Group, a number of our apartment buildings have been constructed by Reed's construction division, RCQ Construction, over the years, including the new Oaks at Gladstone which is currently under construction," Mr Pointon said.
"One of Oaks' primary aims is to continue to strengthen our presence across Australia and Rivermarque presented the perfect opportunity for us to enter the market in Mackay."
Mr Reed said after just seven months on the market, more than 50% of Rivermarque apartments were already sold, with the development now under construction.
"It's not every day you see these kinds of sales figures, particularly in the current economic climate," Mr Reed said.
"The strong interest can be attributed to the development's prime CBD location, modern design and strong forecasted investment yields of up to nine per cent per annum."
Rivermarque has 91 apartments including a combination of studios and one- and two-bedroom dwellings. There is also a gym, outdoor pool, spa and BBQ area, along with ground-floor retail and hospitality amenity.
Studios start from $271,000 and the remaining one-bedroom apartments are priced from $304,500, with the two bedrooms from $391,500. Construction is due for completion in mid-2014.