West Village
St Paul’s Terrace
Location
West End, Brisbane
Fortitude Valley, Brisbane
Acquisition Price
Apartments acquired for $450,000
Apartments acquired for $375,000
Discount to List Price
27%
44%
Period
2020-2023
2020
West Village
Location
West End, Brisbane
Acquisition Price
Apartments acquired for $450,000
Discount to List Price
27%
Period
2020-2023
St Paul’s Terrace
Location
Fortitude Valley, Brisbane
Acquisition Price
Apartments acquired for $375,000
Discount to List Price
44%
Period
2020
Investment Rationale
- Location: West Village and St Pauls Terrace were quality apartment projects in good locations within the inner Brisbane market. Public transport such as rail, bus and ferry services were readily available
- Significant discount: The properties were purchased/offered to investors below replacement value
- West Village: RW Capital used a synthetic structure to acquire 56 apartments at a 27% discount and minimise stamp duty costs. The apartments have since been leased, creating a yield to investors. RW Capital has been gradually selling the apartments, generating capital growth from a reversion to list price
- St Pauls Terrace: RW Capital negotiated an opportunity for investors to purchase apartments at a 44% discount to list price. The apartments were offered as individual purchases to investors. Investors under this structure were eligible to take advantage of depreciation benefits in addition to any yield and capital growth upon sale