Forza 9-15 David Street Fund
9-15 David Street, Richmond, VIC
KEY PROPERTY INFORMATION
|Number of Apartments||129|
|Purchase Date||January 2015|
|Gross Realisation Value||$82,100,000|
The Forza 9-15 David Street Fund was an unlisted property fund which held a prime 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 shopping precincts of Bridge Road and Victoria Street.
The Fund obtained a planning permit to construct an 11-level complex of 129 apartments and a commercial tenancy 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 129 apartments and commercial tenancy.
Investors obtained a net investment return of over 80% whilst also delivering a high quality, sustainable development outcome.
Despite straddling a turbulent period of residential apartment oversupply concerns during 2016/2017 which created challenging selling conditions, the development was successfully completed and the projected profit was achieved. As a result of good buying and strong risk management, we were able to develop a high-quality product at a very attractive price point which helped insulate us from market risk and ensure that the outcome for our investors could be delivered.
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 a large common area on Level 1. In addition, 7 of the apartments were acquired by a specialist disability services provider which is a fantastic outcome for the project.