This article is from the Australian Property Journal archive
SYDNEY-based IPM has taken its Northern Beaches development pipeline beyond $200 million after buying up a further two sites spanning a total of 3,100 sqm, including the Pittwater Plaza shopping centre.
Perched in the heart of Mona Vale, the 2,000 sqm property at 19 Bungan Street also has small retail and business tenancies and has development approval in place for 36 apartments and ground-floor retail.
IPM will undertake a redesign process to enhance the existing development plans and create a scheme for a high-end apartment project catering to the local downsizer and owner occupier market.
It is believed to have bought the site off-market for circa $24 million.
The project represents a 50:50 joint venture with non-bank lender Metrics Credit Partners and has an estimated end value of about $70 million.
Domain Residential’s Peter Grant brokered the deal.
The second site, at 13-17 Ocean Road in Newport, is composed of two residential home picked up from separate private vendors, also off-market, through Domain Residential’s Nik Vuko.
IPM will seek development approval for a limited number of luxury three-bedroom apartments, also catering to the local downsizer and owner occupier market.
The pair of acquisitions follows its purchase of 1,362 sqm of Palm Beach land at 1112-1116 Barrenjoey Road, which has an estimated end value of $60 million.
IPM purchased the sites with the intention to syndicate the projects through one of its investment funds vehicles catering to private family wealth investors.
Steven Sroba, IPM managing director, said Sydney’s Northern Beaches has witnessed a “once-in-a-generation resurgence” in recent months with some suburbs surging in value by as much as 28.5%. The company has just achieved an off-the-plan suburb record just down the road from Pittwater Plaza at its Iluka beachfront development, selling the three-bedroom penthouse for $4,775,000.
“By comparison there is little in the way of development opportunities so demand from local owner occupiers looking to re-invest in the area at an all-time high,” Sroba said.
“There has been a distinct lack of quality new product coming to market in the region so we see a huge opportunity to capitalise on this rarity and deliver high-quality, well-designed apartments to the Northern Beaches market, which has been significantly underservices in the recent years.”
Stable Properties recently launched its new development of 18 luxury villas in the region, while ASX-listed Sunland last month offloaded $35.3 million in properties in Ingleside to a developer.
IPM’s total portfolio is worth $2.5 billion across 70 completed developments.
