With the ink drying on SAS Global’s $61 million deal to buy the OneSteel site in North Fremantle, neighbouring McCabe Street joint-venture developer Australian Finance Group Ltd is focused on raising capital for its own acquisition.
With the ink drying on SAS Global’s $61 million deal to buy the OneSteel site in North Fremantle, neighbouring McCabe Street joint-venture developer Australian Finance Group Ltd is focused on raising capital for its own acquisition.
AFG
The mortgage broking group has relaunched a prospectus to fund the purchase and expects to raise more than $14.5 million by July 14.
AFG is proposing 76 apartments and 16 townhouses of between three and four storeys on the 6,065 square metre site, which has the potential for a two-storey penthouse with both ocean and river views.
Apartments will be priced from $1 million.
AFG general manager property Peter Durward said the entire Leighton Beach precinct would be completely transformed within five years into a coastal village of apartments, townhouses, shops, cafes, bars and a boutique hotel.
“In the next five years that whole precinct is really going to lift. Elevated sites like ours with double views of ocean and river are rare and I expect any apartments there will be worth an absolute premium,” he said.
More than 40 people are believed to have expressed interest in purchasing apartments in the project, with completion expected by mid 2011.
AFG will shortly begin detailed planning with architect Fred Zuideveld and is likely to lodge a development application with the City of Fremantle early next year.
Mr Durward said the joint-venture partners were considering expanding the McCabe Street project from four to five storeys to allow up to 95 apartments and 15 townhouses, but would gauge interest first from the public before deciding.
“I think the uniqueness of this property will really appeal to the owner occupiers and many people in the area with big houses will see this as an opportunity to downsize,” he said.
The industrial-zoned site does not currently have a height limit imposed and is the subject of a proposed urban rezoning along with the 3.1 hectare OneSteel site.
A separate urban rezoning proposal exists for a 1.4ha strip zoned ‘parks and recreation’ on the western side of Stirling Highway opposite OneSteel, which has been earmarked for development of up to five storeys by the state government.
Land along McCabe Street has largely remained undeveloped for the past 15 years, despite the surrounding Minim Cove and Buckland Hill estates growing into up-market residential enclaves.
AFG managing director Brett McKeon is confident the McCabe Street project will attract a good proportion of local investors.
Although the bottom end of the market was slowing down, he predicted high-end property would continue to perform extremely well in the WA market.
“There are a lot of people in Perth with serious cash to invest, which will keep the top-end of the market running for a good while,” Mr McKeon said.
With just three property projects to date including a 53-lot residential subdivision in Pearsall and an apartment project in Claremont, AFG is actively seeking other sites to expand its property division.
A spokesman from the WA Planning Commission said it was due to hand down its report on the proposed McCabe Street urban rezoning within six weeks, after which it would be tabled in parliament.
acquired 15 McCabe Street for $9.53 million in January after it formed a joint venture with the owners of the adjacent Rolly Tasker Sails to redevelop both lots.
