Land & Homes Group Limited has entered into a conditional agreement to acquire 100 Barry Parade, Fortitude Valley for $20 million.
Barry Parade represents the company’s second acquisition in Brisbane, and follows the recent requotation of Land & Homes on the Australian Stock Exchange.
The Barry Parade acquisition is a further step in the company’s plan to establish itself as a real estate developer in inner Brisbane and the broader South East Queensland region in the short to medium term.
The 100 Barry Parade site is currently comprised of a number of single storey commercial/industrial units together with an operational services station, and is occupied by three tenants on a monthly holdover. The company considers it to be a prime residential apartment location located on the edge of Fortitude Valley, Spring Hill and the Brisbane CBD. It is within easy walking distance of the city and its major retail and entertainment offerings, employment nodes, several schools, and has a variety of transport options available to it.
The Barry Parade acquisition fits strategically within Land & Homes' preferred property development model to develop quality, medium to high-density residential apartments for an expanding market in a strong sustainable growth region.
There is an existing Development Approval approval in place for a 25 storey, two tower development of up to 566 residential units, which LHM intends to revise.
Working with its locally-based architects and designers, LHM is reviewing the feasibility of two more efficient and more elegantly designed towers, including a larger overall podium area. The revised development is proposed to involve a much simpler structure with a reduced overall footprint when compared to the current approved scheme.
If approved, the revised lower density scheme would provide the following accommodation profile:• a two tower development of around 400-450 one and two bedroom apartments;
• around 1135sqm of ground floor retail facilities
• approximately 340 car parking spaces over 5 basement levels.
LHM intends to finance the acquisition through a combination of debt and equity.
A deferred settlement of 31 October 2016 will give LHM sufficient time to arrange funding before the site’s proposed development in 2017, as well as to revise the project’s design and secure the amended approvals required.