This article is from the Australian Property Journal archive
NON-bank lender MaxCap has provided a $76 million construction debt facility to Luxcon’s apartment development, The Address, in East Melbourne.
The 10-level mixed-use retail and accommodation building was granted planning approval earlier in 2021 for 23 apartments, including two double storey penthouses and three levels of basement carparking plus mixed retail on ground level.
MaxCap’s chief investment officer Bill McWilliams said industry research suggests that East Melbourne is short of apartment sites for developments.
“We understand that there have been no new apartment projects built in the past two years and hence we expect strong interest in The Address, East Melbourne by Luxcon – especially given the lack of new supply coming on stream for the owner occupier apartment sector.
“There is significant demand in the East Melbourne area with purchasers looking for quality mid to high rise towers,” McWilliams said. “Demand is reportedly strong in the $2m – $5m range and we have seen sales at the level of $30,000 per square metre and above in several recent transactions. It’s a popular part of Melbourne with excellent amenity.”
“Industry numbers reinforce that East Melbourne continues to be highly sought-after as a suburb and has scarce supply for purchasers,” he added. “We are confident of strong sales for Luxcon given this shortage of dwelling stock and believe these apartments will be highly sought after by the purchaser market.”
The total GRV of the project is expected to be circa $125 million.
Apollo Global Management and its affiliates recently acquired up to a 50% equity stake in MaxCap.
