Jul 23 2018Add to Favorites
Property developer and investor Zone Q has broken ground on its first Sydney residential project, Aqualuna, a prestige 63-apartment, $155M project in the blue ribbon harbourside suburb of Milsons Point.
Designed by globally-recognised architect Koichi Takada, the eight-storey boutique building launched to the market early in 2017 achieving 70 per cent of sales within three weeks.
Ceerose has now been appointed to deliver the apartments and expects a two-year build program.
Zone Q Project Manager, Andrew Wilkinson, says the business, which has recently grown its development pipeline to $200M and its Australian asset-base to $500M with a series of commercial acquisitions in Perth, Sydney and Melbourne, was excited to break ground on Aqualuna.
“We wanted our first project in Sydney to set a new benchmark in the market. It’s a verystrategic location for us as an entry to the Eastern Seaboard residential market and offers us the perfect platform to debut the kind of quality product Zone Q is becoming known for,” hesays.
“We’re delighted to be partnering with Ceerose and know that we have a great builder thatshares our commitment to quality.”
Ceerose Managing Director Edward Doueihi comments, “It is a privilege to be building what is set to become a landmark project overlooking Sydney’s harbourfront. Approximately 500workers will be employed during the construction phase. Demolition recently started and the main work is expected to commence later this month.
“The Ceerose name has become synonymous with constructing boutique residential buildings that epitomise luxurious living,” he says.
Aqualuna is located metres from the harbour foreshore; is within walking distance of Kirribilli village, Luna Park, North Sydney Olympic Pool and is only minutes by ferry or train to Sydney's CBD.
The current investment landscape in Australia is driven by a range of factors, not least the 2019 federal election, and the view is that the result of the Wentworth by-election, a seat that has historically been monopolised by the Liberal Party, will be the foreshadowing of the federal outcome. The Australian equities market is experiencing volatility, with a 200 point drop last week in the S&P ASX index, the largest drop this year and potentially the result of sentiment surrounding geopolitical headwinds with the latest developments relating to the trade war between the USA and China. Global bond rates remain low, and despite incremental increases, interest rates are too low to be attractive from an investment perspective.
In an ongoing low-interest rate environment on savings and with banks withdrawing from property and construction financing, investment groups like Centennial Property Group are seeing value in providing first mortgage funding for property development, recently settling a $48m loan for a mixed-use retail/residential development in Sans Souci, NSW
With the combined influences of a cooling residential property market and heightened bank scrutiny on all aspects of real estate lending, traditional debt sources are, in many cases, closed to developers and commercial real estate investors, particularly where circumstances require a specific funding solution.
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