This article is from the Australian Property Journal archive
SINGAPORE Exchange-listed Thakral Corporation Ltd has committed $A14 million to fund two new developments by Queensland-based private developer Pointcorp.
This comes hot on the heels of TCL injecting $24.05 million into Anka Construction’s $200 million mixed-use development, Union Balmain, in Sydney in April — the single largest amount it has committed in one real estate project in Australia.
Through its Australian subsidiary, TCAP, it is funding the $102 million Vida at West End in Brisbane and the $20 million Gateway Apartments in South Mackay. TCAP has previously provided funding for Sephora at Highgate Hill, also in Brisbane.
TCAP has the first right to fund future projects by Pointcorp, which was established in 2004 by Chris Vitale and Paul Gedoun and has a current development pipeline of $280 million.
TCL and TCAP managing director, investments and corporate, Jaginder Pasricha said the company had researched a number of projects before deciding to invest in Pointcorp’s newest development, Vida.
“We looked at several projects in Brisbane and were not satisfied with where they were positioned in the market, the location or the nature of the development.
“We believe Brisbane has seen its worst and has reached bottom, or six o’clock on the property clock, and, while it is not going to rush to the top, 12 o’clock, overnight, we think there will be gradual improvement,” he added.
“We do not like investing in bubbling markets anyway. We look at steady markets and that is what we see Brisbane as,” he continued.
Since launching to the market in early June, more than 74% of the 148 apartments at the dual-building Vida development, located on the Brisbane River just 2 km from the CBD, have been sold, with $62.4 million of contracts issued.
Construction commenced earlier this year on Gateway Apartments, where contracts have been issued for more than 90 per cent of the 56 apartments, for a total of more than $18 million, and work is also well underway on Sephora, where all of the 20 premium apartments have sold.
Pointcorp director Chris Vitale said the partnership gave the business strong financial stability.
“TCAP’s role in the partnership is to provide capital for our projects, but it also brings a level of corporatisation to the business as we continue to expand our presence in Queensland.
“This is a long term positive outcome for us, particularly as TCAP has first option on funding for our future development projects,” Vitale said.
Property Review
