CASE STUDY
Equity
Residential Apartment Development
About This Project
| Union Place | Botanic | Crows Nest |
| Location | Jannali, Sydney | Lane Cove, Sydney | Crows Nest, Sydney |
| Sale Price | $74 million | $66 million | Target: $82 million (GRV) |
| Gross Investor IRR | 20.7% p.a. | 39.4% p.a. | Target: 18.0% |
| Period | 2015-2019 | 2012-2015 | 2021 – Present |
| Investment Rationale | - Location: Union Place and Botanic were apartment projects in strategic locations near town centres, transport links and amenities
- Early adopters: Ray White data showed that apartments were increasing in value in both locations. RW Capital reacted to the data and were first movers in undertaking apartment developments in the well located areas
- Union Place: RW Capital identified an opportunity to transform under utilised land and air rights in Jannali into 89 apartments and a tavern development. Returns to investors were realised over two stages:
- Stage 1: 65% valuation uplift over 14 months
- Stage 2: 20.7% gross IRR over 5 yearsBotanic:
- Botanic: RW Capital capitalised on higher density rezoning in Lane Cove and secured an option over four properties totalling 4,402 sqm for $15 million, or $190,000 per proposed apartment
- Botanic was 100% sold in six months
- Construction was completed on program and budget
- Marketing included a display suite in the heart of Lane Cove Village
- Crows Nest: RW Capital has strong conviction on downsizer market given significant wealth generation in the Sydney market on the back of property price increases
- Crows Nest is a well-located suburb with limited supply / competing product, and close proximity to the city and critical transport links
- DA submission and detailed design is currently underway, targeting project completion and settlements in 2025
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