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Private Equity – Residential Apartment Development

Union Place

Botanic

Location

Jannali, Sydney

Lane Cove, Sydney

Sale Price

$74 million

$66 million

Gross Investor IRR

21% p.a.

39% p.a.

Period

2015-2019

2012-2015

Union Place

Location

Jannali, Sydney

Sale Price

$74 million

Gross Investor IRR

21% p.a.

Period

2015-2019

Botanic

Location

Lane Cove, Sydney

Sale Price

$66 million

Gross Investor IRR

39% p.a.

Period

2012-2015

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 years
  • Botanic: RW Capital capitalised on higher density rezoning in Lane Cove and secured an option over four properties totaling 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