With $170million of funds currently under management and over $500million of projects in its portfolio, M/Group’s influence in the development funds management sector has steadily increased in pace over the last twelve months, resulting in series of development funds oversubscribing within weeks of their release. The company’s newest investment opportunity located in Wellard is well-placed to follow suit.

The new development fund seeks to raise $6 million to support the acquisition of an 8.3-hectare parcel of land in an off-market transaction within the established suburb of Wellard. The company proposes to develop 116 premium residential home sites based on a development model that has proved highly effective in the neighbouring suburb of Secret Harbour.

M/Group Managing Director, Mr Lloyd Clark, said the model used to assess and ultimately acquire attractive property propositions is now established and proven, and there is a strong demand for similar projects in the investment space.

“The Wellard fund opportunity encompasses several key attributes and factors that has led to many of our previous funds attracting investors and oversubscribing prior to the nominated closing date. This has created its own sense of momentum and we are fielding more and more enquiry even prior to an opportunity being announced,” he said.

“We have now raised over $70million in the last twelve months and continue to be strategic in minimising risk and providing opportunities that are genuinely rare and exciting.“

The Wellard site is located at lots 670 & 1388 Bertram Road, representing one of the last remaining development sites within the master-planned community, which is supported by an approved Local Structure Plan, transport infrastructure, medical facilities, schools and shopping.

The site is comparable to company’s previous boutique land acquisition in Secret Harbour, which was highly successful in the marketplace and resulted in the development program being fast-tracked to keep up with demand.

“M/Group’s approach to its investment portfolio is considered and measured, which is always well received by investors in varying market climates,” Mr Clark continued.

“Our in-house capabilities have also increased over the last twelve months, which provides addition confidence to deliver on program goals. We are thrilled by the results of our work this year and continue to seek new opportunities.”

M/Group is targeting investors for the Wellard Fund with an internal rate of return (IRR) of 22% and forecast return on equity (ROE) of 50% over a 2.5-year term.

A minimum investment of $50,000 is required with multiples of $10,000 thereafter over an estimated investment term of 30 month.

Following the success of M/Group’s initial land development activities, the company is expanding its brand portfolio with the introduction of a dedicated consumer identity to steer the development and sales of all future land projects.

The introduction of Monument aims to emulate the success of M/Group’s apartment brand, Match, by creating an independent entity within the organisations brand structure.

M/Group Managing Director, Mr Lloyd Clark, said the new brand strategy reflects the positive momentum experienced from the company’s early experience in the sector, as well as the increasing importance of land development in the M/Group portfolio mix.

“Despite engaging highly experience management to oversee the introduction of land subdivisions, this area of development had been relatively new to M/Group, and slightly removed from its core product-line of built assets,” he said.

“In a very short time, however, our land development arm has proved to be a highly successful commodity. The company’s capability in meeting market demand with the development and sales of carefully crafted land packages has effectively created an entity that should rightfully stand on its own and complement the Group’s other divisions.”

M/Group is a vertically integrated property company with interests in investment, development, construction and real estate. The company established itself as one of Perth’s leading apartment developers under the brand Match, then evolved its influence with supporting services including M/Construction, M/Property and M/Finance.

Monument will sit beside Match as a boutique product offering and the company plans to continue its focus on building a diverse and boutique land portfolio.

“As a company, we established our land credentials with a small parcel located in the established suburb of Secret Harbour. We are now negotiating and successfully acquiring some of the city’s best development sites,” Mr Clark continued.

“Monument will make its market debut in the marketing of a new premium land subdivision in Beeliar. This will be followed by a pipeline of land product soon to be announced.”

Monument will be led by Director Mr John Wroth and supported by a team of land sales experts.

For more information on M/Group companies and product please visit www.mgroup.com.au. 

Construction on a 90 room Quest Apartment Hotel is about to commence, following the successful capital raising of $8.5 million by M/Group with a property investment fund that oversubscribed within weeks.

The development site for the hotel is located on Boas Avenue in Joondalup CBD and incorporates an adjacent café. M/Group had negotiated a 15-year lease with the national operator with three further 5-year term options, as well as achieved development approval prior to the fundraising process.

Mr Lloyd Clark, M/Group Managing Director, said the investment fund was geared specifically to low risk investors with many common development hazards mitigated prior to release.

“Quest is Australia’s leading hotel operator with over 150 properties in Australia, New Zealand and Fiji. The company has been highly successful in identifying and servicing environments in central business districts, suburban and regional areas with close proximity to head offices, business centres and key tourist destinations,” he said.

“M/Group and Quest share a similar vision for identifying and activating strategic sites. Joondalup was seen an excellent fit in terms of Quest’s ongoing growth model in WA, and the level of security and value we can deliver to our investors.”

The new apartment hotel will be constructed by M/Group’s internal building division, M/Construction, which has extensive experience in the delivery of quality residential and serviced apartments, and was recently named Best New Builder by the Master Builders Association.

The company’s target forecast investor IRR is 15.7% for the Trust Term, with a forecast commencing annual distributions of 11.5%.

“Engaging our own building company to undertake construction mitigates construction cost blowouts and supports quality control at every stage of the development,” Mr Clark continued.

“It is a model that has worked exceptionally well in instilling confidence in our investors, and our success in raising capital to a point where most of our funds quickly oversubscribe is testament to the work we do.”

Construction on the Quest Joondalup is scheduled to commence in August with completion in October 2019.

For more information or an investment prospectus contact info@mgroup.com.au or (08) 6380 0400.

Wodonga Plaza has started to release information on a new range of fashion retailers to bolster the Centre’s fashion offering, with Cotton-On Mega confirming its commitment to open later this year.

The announcement is the first in a line of the fashion giants to be confirmed just weeks after Best & Less opened its doors and details of Wodonga Plaza’s new 140 seat food court.

Centre Manager, Ms Cherie Daly, said the new retail tenancies will complement the shopping centre’s existing fashion outlets and take the environment one step closer towards a fully tenanted community shopping hub.

“Our new owner, M/Group, is looking to create the best shopping experience in the region. Wodonga Plaza will be a ‘one-stop-shop’ environment, where you can pick up your groceries, grab a bite to eat and enjoy a variety of fashion possibilities,” she said.

“The new retail tenancies will provide a full range of fashion options for babies through to menswear and women’s style. We are already receiving  great community feedback in relation to the changes taking place and, once complete, we hope to go back to the site’s historic ‘sales yard’ roots to deliver a genuine community hub and meeting place.”

Cotton-On Mega will take approximately 1100sq.m space adjacent to the new Best & Less store.

M/Group Director, Mr James Collis, said while the new tenancies are a great retail bonus for the community, the underlying benefits in employment and driving the local economy are significant.

“We are really thrilled that M/Group’s $2million investment in refurbishing Wodonga Plaza is already seeing benefits for the community. Investment in regional environments such as Wodonga often has an extensive multiplier effect,” he said.

“We are delighted that our new retailers are already looking to source new staff, engage suppliers and encourage local spend. Keeping the funds local will help to drive the area’s economy and, ultimately, create more jobs outside the Centre. It’s fantastic to see this all play out so quickly after out arrival to the town mid last year.”

The new fashion retailers will join Target, Autograph, BagsOnly, Jay Jays, Just Jeans, Millers, Nation Street & Surf, Noni B, Spendless Shoes, Suzanne Grae and Williams.

Cotton-On Mega is scheduled to arrive at the Centre in September 2018 with new announcements to be on other fashion brands in the coming week.

The community is invited to follow the Wodonga Plaza Facebook Page and/or subscribe to its newsletter via www.wodongaplaza.com.au for regular updates.

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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