This article is from the Australian Property Journal archive
GREG Paramor’s new baby, Folkestone Limited, has secured new developments in Victoria and Western Australia, four weeks after recapitalising the company.
Paramor said the investments are the first initiatives under Folkestone’s new growth strategy.
Folkestone will invest up to $6.1 million in a residential subâ€division in Officer, in the south east growth corridor of Melbourne and up to $3.6 million in a housing project in the key regional mining town of Karratha, north west of Western Australia.
Folkestone’s chairman Garry Sladden said the company is being presented with a diverse range of real estate investment opportunities.
“Both of these investments fit within the return criteria we have previously announced to the market. In addition to these two investments, we are currently exploring further opportunities to increase our exposure to attractive valueâ€add and opportunistic real estate investments and funds management activities.”
Paramor said the Officer development secures the company’s position in Melbourne’s key growth corridor. The deferred settlement terms involves a joint venture with integrated development a Melbourneâ€based residential developer, although he did not reveal the identity.
Folkestone will buy a 50% interest in the 14.1ha site and settlement of the land is subject to reâ€zoning which is anticipated to occur in mid 2012. Folkestone will make an initial commitment is $0.38 million. Planned sales are expected to settle in the second half of 2013.
The investment in Karratha has also been made through a joint venture with WA developers and investors. The investment involves the acquisition of a 25% interest in an accommodation and housing development. Stage 1 of the development, known as The Ranges, comprises a mix of residential and short stay dwellings together with shared facilities including lifestyle facilities. Through this joint venture, Folkestone has also acquired a 25% interest in an Option to Purchase a further 7.1 hectares of adjoining land.
“The Ranges investment provides Folkestone with an excellent opportunity to deliver much needed quality accommodation in Karratha, the gateway to the Pilbara.
“Both transactions demonstrate our ability to source and invest in attractive real estate investment opportunities that combine our capital and real estate expertise with proven local operators with specialist skills necessary to deliver successful outcomes,” Paramor concluded.
Australian Property Journal
