M/Group has confirmed the acquisition of an elevated 11.8-hectare residential development site in the Perth suburb of Beeliar. The acquisition is a result a successful capital raising venture of $13.85m; adding to a long list of investment funds issued by the company that have oversubscribed within weeks and taking the Group’s total capital raise to over $70million in just 12-months.

The Beeliar site is the vertical property Group’s second land estate project, having only entered into the land development sector in late 2017. The site has received Local Structure Plan approval for the development of 171 residential lots with integrated parkland and the preservation of a number of established Tuart Trees throughout the site.

M/Group Managing Director, Mr Lloyd Clark, said the Beeliar land acquisition is a significant leap in terms of value proposition from the company’s initial land venture in Secret Harbour, but is well-aligned to the organisation’s strategic interests.

“M/Group continues to generate investment interest for the development and delivery of investment fund opportunities that often result in oversubscription. Our portfolio today covers a broad range of built form, income producing asset and now land development, and we have found this approach of providing investment diversity to be highly effective in changing market conditions,” he said.

“A hallmark of M/Group’s ongoing success across all products is the identification and acquisition of strategically located sites. By all accounts, Beeliar is certainly one of these.”

The projected financial return for private equity investors is 70% over a forecast 36-month investment period, with distributions to be paid on the basis of a 27% Internal Rate of Return.

“Our increasing interest in residential land product complements a portfolio that now incorporates apartment developments, shopping centres and commercial development,” Mr Clarks continued.

“We are extremely privileged to have a growing staple of investors that share our long-term vision and support each project and what we can deliver.

“Perhaps the key reason we experience such rapid success with our fund releases is our approach. M/Group is not merely about acquiring and selling, we have the capacity and the internal expertise to build value into each investment and will continue to source and secure product that meet our strict criteria.”

From its beginnings as an apartment development company operating in inner city Perth some 16 years ago, M/Group today incorporates an integrated range of inhouse services that include M/Construction, M/Finance and M/Property real estate expertise.

M/Group holds an Australian Financial Services License and currently has $172 million of funds under management.

For more information on M/Group’s property portfolio visit www.mgroup.com.au.

As reported by Susan de Ruyter in The West Australian, 23rd May 2018.

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