An over-subscribed property syndicate with more than 90% repeat investors has enabled Perth-based property company, M/Group, to secure the acquisition of Wodonga Plaza in regional Victoria. It represents the M/Group’s second regionally located shopping centre acquisition from Vicinity Centres, and its first step into growing an asset portfolio in the eastern states.

M/Group was established in Western Australia over 15 years ago and has evolved into a diversified property company that offers investment opportunities across land, residential, construction and income producing assets.

M/Group Managing Director, Mr Lloyd Clark, says the company’s targeted approach to identifying regionally located assets with good lease covenants and value-add potential has attracted significant investment interest.

“Every company aspires to having a network of investors that trust what they do and how they do it. We are really excited to be taking this group of loyal and new investors into the eastern states,” he said.

“Rather than target fully leased assets at capped rates of 5% – 7%, our interest is in securing properties that not only offer excellent income but also present development, refurbishment or lease re-positioning potential with the aim of achieving capital uplift as well as delivering excellent cash flow income. It is a similar strategic and considered approach we take across all our property activities and historically we have delivered quality investments and good returns.”

Wodonga Plaza attracted a sale price of $43.5 million, of which (circa) $26 million was raised through investment; M/Group’s largest capital raising to date.

The sale closely followed the company’s acquisition of the Albany Brooks Garden Shopping Centre in Western Australia earlier this year. In just over six months, M/Group has accumulated (circa) $70 million under management in income producing funds that yield an average return of 10% plus significant potential for capital upside.

“Wodonga Plaza is a great opportunity in a great regional city that is the gateway to Victoria from NSW. It is currently and will continue to be the largest centre in the region and we have already secured a new 10-year lease with Best and Less with multiple other tenant negotiations underway,” Mr Clark continued.

M/Group’s investment model utilises its Australian Financial Service License to make new opportunities available to a broader market that may not traditionally have access to this investment class.

Wodonga Plaza sits on approximately 4.4ha on island site with 4 Street Frontages and gross lettable area is some 17,200 sqm. Key anchor tenants include Target and Coles, with three current mini majors Amcal, Reject Shop and Best and Less, and around 55 specialties stores.

M/Group targets tenanted assets Australia-wide with a value proposition of around $10million to $50million. The success of this recent syndicate has fast tracked the release of its next syndicate where a similar response is expected.

For more information contact James Collis on 08 9324 3855 or visit www.mgroup.com.au/investments.

Boutique apartment company, Match, stole the show at the 2017 Western Australian Heritage Awards for its work in transforming Fremantle’s iconic Dalgety Wool Stores into unique residential industrial warehouse apartments.

The $130 million heritage restoration project took home awards including the ‘Conservation or Adaptive Reuse of a State Registered Place’, and the prestigious Gerry Gauntlett Award; recognising an outstanding achievement of adaptive reuse in Western Australia.

The project, which was developed in collaboration with Capital Joint Venture Partner, Sirona Capital, is one of the largest heritage renewals in the State, and award judges acknowledged it as a “…massive undertaking that required Match to reach above and beyond to find innovative solutions to conserve and enhance original heritage fabric whilst satisfying building, safety and utility requirements as well as customer expectation.”

The site had sat largely unused for 20 years and the judges said the project is “a testament to the dedication and financial commitment of its owners.”

Managing Director of parent company M/Group, Mr Lloyd Clark, said the awards are a great honour and ‘icing on the cake’ for residents who are now experiencing how it feels to live in the depths of history.

“Drawing on our experience with heritage renewals, we knew from the outset that this project would present challenges, however we also saw it as an extremely important opportunity.

“Match is in the business of developing signature properties. It is our firm belief that people want more from their homes, and today new apartment owners are creating their own space amidst 100 year old Jarrah beams and original heritage features,” he said.

“To be honoured so significantly at the Western Australian Heritage Awards is a credit to the tireless work of the entire project team, who left no stone unturned to make this building as special as it now is. It is an extremely proud moment for M/Group.”

Heirloom by Match was designed by Dominic Snellgrove of Cameron Chisholm Nicol and constructed by national top tier construction company, Built.

The development team worked in collaboration with the City of Fremantle, State Government and heritage authorities to achieve a positive outcome.

Mayor Brad Pettitt said the Fremantle Council is a big supporter of adapting heritage buildings for modern uses.

“It’s hard to imagine a better result than what we now see at Heirloom. After being tired and run down for decades, the east end of Fremantle has become a very attractive place to live and work. The Heirloom development has been a major driver in this ongoing transformation,” he said.

“Congratulations to Match and the development team for their passion and commitment to ensuring our heritage buildings are retained for future generations of people to enjoy.”

Heirloom by Match has retained over 85% of heritage fabric across 183 apartments. It has exposed the buildings infamous saw tooth roof to allow natural light and airflow through a spacious central atrium.

“Heirloom is unquestionably Match’s most significant development project in the company’s 16 year history. Its location close to Fremantle’s café strip and between the river and the beach is ideal, and it has helped to activate the City of Fremantle’s plans to extend Fremantle’s activity centre into its eastern corridor gateway,” Mr Clark continued.

“The renewal process was sensitive in nature and proved extremely complex.  However, the recognition and accolades we have received are both humbling and extremely rewarding.”

Match had previously received the coveted Gerry Gauntlett Award in 2008 for its highly acclaimed Home warehouse apartments located in Perth CBD. The company is also responsible for the heritage-listed Maymont in Maylands, which effectively injected new life into the area, as well as a range of cutting-edge design-inspired apartment properties throughout Perth.

Heirloom by Match has available ‘move in ready’ apartments from $450,000 and two-bedroom apartments from $650,000, with a limited number of harbour facing Lofts available from $950,000.

A small number of residential leasing opportunities also exist to approved applicants.

The Heirloom display apartments are open by appointment. For more information visit www.heirloombymatch.com.au or contact 0432 660 066

The acquisition follows a successful renegotiation with key anchor tenant Woolworths to extend a current lease agreement from two to 12 years.

M/Group Managing Director, Mr Lloyd Clark, says the Woolworths lease was significant to the acquisition and adds weight to an already strong investment proposition.

“M/Group has been actively seeking suitable properties to meet an investment criteria that is particularly pertinent to current market conditions. Albany Brooks Garden Shopping Centre stood out as a highly secure income producing investment that targets investor earnings of 10% pa plus strong future capital potential,” he said.

“Woolworths’ extended lease agreement unlocked an immediate boost to the property’s capital. The site also has redevelopment potential with over 2.7 hectares of retail zoned land remaining for future development. It is not difficult to see why our investors were motivated by the opportunity.”

M/Group initially entered the asset funds market in 2013 with the acquisition of the strategically located Officeworks building in Bunbury. This asset also incorporated a blue-chip tenant, long lease and high forecast returns. The fund was fully subscribed within just weeks of its release.

The Albany Brooks Garden Shopping Centre is identified as a neighbourhood shopping centre located on the corner of Chester Pass and Catalina Roads, Albany. It is anchored with national brands that include Woolworths, BWS, Katies, Brumby’s and Chemart, which occupy 80% of the centre by income.

Mr Clark said the level of interest in the recent property syndicate was not unexpected and the company already has similar opportunities on its radar.

“The rate at which income producing property funds over-subscribe is a clear indication that demand continues to be high for these kinds of investments, particularly for investors seeking a low-risk investment class,” he continued.

“To support this activity, last year M/Group appointed property acquisition specialist James Collis as director of income funds. James has been working on a number of similar opportunities and M/Group is already accepting expressions of interest for upcoming investments.”

M/Group’s investment model utilises its retail funds management license to make new opportunities available to a broader market that may not traditionally have access to this investment class.

M/Group targets tenanted assets Australia-wide with a value proposition of around $10million to $50million. The company is currently negotiating the acquisition of some $60illion worth of income producing assets with the release of a new fund currently in the pipeline.

For more information contact James Collis at james.collis@mgroup.com.au or visit www.mgroup.com.au/investments.

As reported by Dan Wilkie in Business News today, 19 December 2016.

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Fremantle has a new Heirloom, following the completion of a monumental heritage rejuvenation project that was undertaken by boutique property company Match, together with joint-venture capital partner Sirona Capital, to transform the iconic and heritage significant Dalgety Wool Stores along Queen Victoria Street into Western Australia’s largest residential heritage renewal of its kind.

The opportunity to develop the 94-year old, three-storey structure into New York-style industrial warehouse apartments was identified by Match in 2007, following a string of successful and celebrated heritage renewal projects introduced by the company, including Home in Perth, Maymont in Maylands and The Clocktower in Inglewood.

Mr Lloyd Clark, Managing Director of Match parent company M/Group, said the “Heirloom” project was incredibly challenging but was just too important to Perth not to pursue.

“Match entered the Perth market in a period where apartment living was only starting to be recognised as a genuine lifestyle choice and people were only beginning to seek out signature residences as opposed to large-scale ‘cookie-cutter’ environments,” he said.

“The company’s propensity to take brave steps in development worked hand in hand with its mission to save Perth streetscapes from excessive repetitive structures. We grew a fascination for identifying and salvaging what we considered to be some of the City’s most treasured heritage buildings. We knew the risks involved in tackling these projects, but saw it as an opportunity and didn’t want to see amazing architecture be left derelict and eventually deteriorate, as is often the case. The Dalgety Wool Stores definitely fell into this category and its completion is without question our biggest achievement in the company’s 15 years history.”

The heritage listed Dalgety Wool Stores was originally designed in 1922 and constructed in 1923. The building received a single storey extension along Beach Street in 1942, with a three-storey structure and extension to raise the entire floor level in 1944. This included the infamous saw tooth roof structure, which has been restored in the heritage renewal process. The building was subject to some additional works leading up to the completion of the main structure and sunroof in 1950-52.

To support Match’s $68million refurbishment, Sirona Capital was invited to join the endeavor as joint-venture capital partner in 2014 and the project emerged as a key development in the City of Fremantle’s $1billion investment plan that would open activity onto Beach Street and extend the City’s life-centre along its gateway.

Sirona Capital’s managing director Matthew McNeilly said the partnership with Match had delivered an outstanding residential development that was both unique to Fremantle and in keeping with the city’s character and history.

The Heirloom renewal retains much of the building’s original historic features, such as the century-old jarrah beams, brickwork and the infamous saw tooth roof structure. An original wool press has been restored and is displayed as an instalment, and homage is payed to the building’s importance to the wool trade in murals and artworks throughout.

The new apartments vary in size and configuration with a starting price of $495,000. The residential complex is already 80% sold out with sales expected to escalate now that people can see the end product.

“Heritage fabric is invaluable and sales have reflected the fact that these apartments cannot be replicated. This translates into specialised boutique product that can often withstand varying market conditions because demand is isolated,” Mr Clark said.

“Heirloom has been a mammoth undertaking and we consider it a highly successful restoration of a magnificent building that frankly deserves a new life.”

The Heirloom renewal is designed by project Architect, Dominic Snellgrove from Cameron Chisholm Nicol, who is a recognised Australian leader in integrated architectural and recipient of Australia’s most prestigious architectural award, the AIA Sir Zelman Cowen Award for Public Architecture. It was constructed by top tier-tier construction company, Built, which has worked on some of the country’s most high profile heritage projects, including the Old Treasury Buildings (WA), QT Sydney (NSW), Queen Victoria Building refurbishment (NSW), Art Gallery of NSW (NSW), and the Melbourne GPO and H&M flagship store (Vic).

Heirloom will be officially opened in the coming weeks with residents expected to move in in early January 2017.