This article is from the Australian Property Journal archive
QUALITAS and First Quadrant Properties have teamed up in a joint venture for a new residential development in the lower North Shore of Sydney, to be known as Willoughby Grounds.
The 11,000sqm infill site is located on the corner of Willoughby Road and Walter Street in Willoughby, around 8km north of the Sydney CBD and is set to see 164 residential units developed across five low-rise buildings.
The infill site is located within an established and serviced neighbourhood, providing the eventual residents with ease of access to retail convenience offerings, transport and recreational facilities.
“With residential house prices maintaining their strength in Sydney, developments such as Willoughby Grounds allow us to use our flexible equity capital to help developers deliver market-leading medium-density housing,” said Mark Fischer, co-founder and global head of real estate at Qualitas.
The development is targeting young families and professionals, with its relatively affordable offering for medium density dwellings within close proximity of the city centre and Willoughby’s current median price at more than $3.3 million for houses.
Qualitas investment in the project has been made by the Qualitas Real Estate Opportunity Fund 2 , which has made investments with a combined end value of more than $2 billion.
“Thematically we like that the Fund can invest in an established neighbourhood with a low supply of medium-density housing but with deep underlying natural demand,” said Fischer.
Since its inception, Qualitas has invested in or financed more than 10,000 new residential dwellings in Australia and New Zealand.
“It is rare that this dynamic presents in a sought-after location like Willoughby, which is benefiting from changes such as the demolition of the broadcast antenna and an injection of funding from developers for new parklands and upgraded leisure facilities,” added Fischer.
Qualitas rounded out 2021, with the announcement of their third seed asset for their $1.2 billion build-to-rent fund with developer Tim Gurner in Melbourne’s St Kilda Junction.
For First Quadrant Properties, the development comes after the success of their Wavelength project of 64 beachfront apartments in Cronulla.
“We are excited to get started with this development. We’ve spent time focussing on what the market is asking for, especially considering changes COVID-19 has made to how we live,” said Chris Rose, managing director of First Quadrant Properties.
At this stage DKO Architects have been appointed to design he apartment interiors.
While the joint venture partners have appointed to Colliers as selling agents for the development.
The project has recently received the go ahead with a planning approval now in place, for development commencement by mid-2022.
“Market-leading product quality and creation of community, with a focus on sustainability, will be the determining factors of successful residential projects over the coming years and Willoughby Grounds delivers that,” concluded Fischer.
