This article is from the Australian Property Journal archive
DIVERSIFIED Property Group Hyecorp's Property Fund No.1 has delivered a 50% return to investors in 18 months.
The return on investment of 49% was 63% above forecast.
The fund was for the development of 20 two-bedroom apartments at 15 Kooringa Ave, Chatswood, on Sydney’s prestigious lower north shore.
Group director Michael Abolakian 70% of the properties were pre-sold and the apartments the group chose to retain as investment are delivering a rental return 93% above forecast.
“The overall return was also well above the standard 12 to 15% expected from most property developments,” he added. “This development was one of the very few low-rise residential developments on the lower north shore. Given the well-publicised housing crisis, we believe this is a good example of how investors and developers can work together to solve what is fast becoming one of Australia’s biggest social problems,”
Founded in 1995, Hyecorp opened its first fund to investors in April 2006 and now has a development pipeline in excess of $100 million.
Abolakian said investors were predominately retail with 35% of the shareholder base self managed superannuation funds but that the HYECORP model was also applicable to institutional investors.
“We have been in discussions with a number of institutional investors in recent months who are looking for exposure to the boutique residential development market. A group of our size would not usually attract the attention of fund managers or larger investors, but they have been attracted to our demonstrable track record.
“We are confident in securing arrangements with some of these investors in the next six to twelve months,” he concluded.
Australian Property Journal
