Sunshine Coast comes of age with launch of property investor group
Property investors are set to benefit from substantially increased returns following the launch of what is believed to be the Sunshine Coast’s first specialised property investment group, Sunshine Coast Capital.
Sunshine Coast Capital Managing Director Chris Wright said with the investment model popular in other areas of Australia, he was delighted to bring the concept to the Sunshine Coast and to launch with a strong first project, The Rhythm on Beach in Maroochydore.
“Sophisticated investors in markets like the Gold Coast and major metropolitan areas have long benefitted from the high returns offered by property investment groups, and we expect Sunshine Coast investors will follow suit with returns of 27 per cent per annum forecast for our first project,” Mr Wright said.
“This structure provides an opportunity for high net worth individuals, companies and self-managed superfunds to reap financial rewards usually reserved for the developers themselves. The only criteria to join Sunshine Coast Capital is that our clients qualify as ‘sophisticated investors’ which, by definition means those with assets of at least $2.5 million and an income of over $250,000 per annum for the last two financial years.”
“Essentially, we partner with investors to fund rigorously analysed projects that have met stringent investment criteria, and use our combined buying power to negotiate high returns with developers.”
“For investors, this can prove significantly more lucrative than investing independently without having to offer their personal guarantees to the senior lender.”
“The combination of the recent significant rise in land values across the Coast and the continued investment into local infrastructure is definitely propelling the region onto a new playing field.”
“It’s for this reason we felt the time was right to build a presence locally and identify a project that would deliver good results for our investors.”
“Our level of confidence in The Rhythm on Beach is exceptionally high, so much so that the directors of Sunshine Coast Capital have all personally invested funds into the project.”
The Rhythm on Beach includes 72 apartments and ground floor retail amenity. Sunshine Coast Capital is looking to raise $7.5 million through its investors, and is offering a target return of 27 per cent per annum until project completion.
The development has already secured 41 presales — predominantly from Queensland buyers — and Mr Wright believes the apartment price point of around $500,000 is particularly appealing to investors given the number of buyers in the market in this price range.
“There are other projects in the vicinity with a price point of $1 million plus however it’s a lot harder to find buyers at this price range than at $500,000.
“We have conducted considerable research and due diligence on this project to provide ourselves and our investors with peace of mind that these apartments offer great value for money and that there is sufficient demand for this type of stock in the marketplace — as evidenced by the pre-sales.”
“Furthermore, RCQ Construction — the builder engaged to construct The Rhythm on Beach — has constructed many similar buildings in the immediate area including the iconic Platinum, M1, Riva, Aurora and Beach on Sixth, to name but a few. With over 30 years’ experience and delivering around $100 million in projects annually, RCQ Construction’s appointment further elevates our level of confidence in a quality end product.”
Sharon Renardson, Sunshine Coast Capital’s Investment Manager and its Authorised Representative on behalf of Guardian Securities Ltd, said interest in Sunshine Coast Capital was not limited to the Sunshine Coast.
“While we expect many of our investors may come from the Sunshine Coast given this is the first opportunity of this nature in the region, we are speaking to investors nationally about this opportunity,” Ms Renardson said.
“We already have an investor in a national corporate law firm in Sydney on board and we are speaking to a number of investors who are keen to find mechanisms to invest in property on the Sunshine Coast. This opportunity offers high yield in a highly feasible project to be reviewed and managed through to project completion by a competent Investment Manager in Sunshine Coast Capital.”
“This region is firmly on the map in regard to opportunities to achieve exceptional return on investment on property in the next couple of years and we therefore expect to invest in further projects on the Sunshine Coast in the future, however we will also consider opportunities in other markets to ensure our investors receive the best possible returns with highly viable realistic projects at any given time.”
“The Sunshine Coast Capital team will always prepare a thorough financial and market analysis to ensure the viability of the project.”