Bridport Projects will shortly begin building its fifth childcare project in as many years having completed similar projects at Kensington, Ringwood, Boronia and Knoxfield.
This latest one is also in Victoria at Eaglehawk, just north of Bendigo and is pre-leased to Eden Academy.
Bridport ensures its portfolio is diversified with residential, commercial and industrial projects.
Last year it completed one of the first affordable housing projects when Homes Victoria settled on its 34-apartment development in Kensington.
The project was acquired in one line by Homes Victoria and was delivered by Bridport within the project timeline and budget against the backdrop of cost and program blowouts.
Bridport recently acquired 7000sq m of industrial land at Highett in south-east Melbourne and continues to pursue the delivery of childcare projects whilst looking carefully for its next residential foray.
Diversification would always be a central theme of Bridport’s acquisition strategy, never relying on any one sector, Bridport owner Tom Shelton said.
“Project size and sector are the primary criteria when seeking the next opportunity.”
He said one of the biggest challenges was the different speeds we were experiencing within virtually all sectors.
“Each market is fractured to a degree and is very sensitive to either quality, price point or its embedded target, which results in all sectors having sketchy elements.
“For example, with the residential sector, it’s hard to remember a time when the competing tensions were so stark. Fragile confidence versus chronic lack of supply. Reduced borrowing power versus wage increases. Investor indifference versus rental growth. The list goes on.
“Some submarkets are suffering as a result, some are holding up.”
Bridport also manages projects for some of its investors and third parties, which flattens its risk curve.
“We assist owners who are not set up to apply the necessary focus to their projects.”
Aside from the current suite of well-documented challenges—most notably costs and planning—Tom said project team selection had never been more critical.
“Virtually everyone is busy and/or under-resourced but no one wants to pass up work, so having frank conversations about workloads and turnaround times can literally save weeks and sometimes months in the program.”
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