The Forza 9-15 David Street Fund is an unlisted property fund which holds a prime 2,325m2 residential development site in Richmond, located directly adjacent to the Victoria Gardens Shopping Centre and a stone’s throw to the Yarra River and the Bridge Road and Victoria Street shopping precincts.
The Fund obtained a planning permit to construct an 11 level complex of 129 apartments and a cafe on the site which provided a strong valuation uplift for investors in the first 12 months. In November 2014, investors in the Fund resolved to develop the site and a second capital raising occurred in March 2015 in order to deliver the 130 apartments and a café.
The project has been fully sold and 100% of the apartment sales have successfully settled. Given the Project has river and city views, Victoria Gardens Shopping Centre (incorporating IKEA, Coles, Hoyts Cinemas and Fitness First) on the doorstep, the Mountain Goat brewery and the Royston Hotel nearby, but none of the traffic of Burnley and Victoria Streets, the Project is well located in an area going through strong gentrification.
Designed by acclaimed architects Peddle Thorp, Supply Co has a strong range of sustainability and environmental features, as well as a focus on community with the huge common area on Level 1. In addition, 7 of the apartments have been acquired by a specialist disability services provider which we think is a fantastic outcome for the project.
Investors have had their equity returned and the bulk of their profit paid out. Investors have obtained an average total return of ~85% which is a fantastic result in what has been a tough development market.
Below is some footage of the Supply Co project under construction: