Charter Hall's Opportunity Fund No.5 (CHOF5) Acquires 11 Hectare Premier Residential Development Site In Little Bay
Charter Hall Group is pleased to announce that Charter Hall Opportunity Fund No.5 (CHOF5) has secured a large, premier residential development site in Sydney's eastern suburbs at Little Bay for $103 million. This strategic site was acquired from the University of NSW, being surplus to its long term requirements and providing valuable funding for more immediate initiatives, including investment in new cancer and biomedical research facilities.
The acquisition is the fourth for CHOF5 following on from two recent acquisitions in New Zealand and the recent purchase of a 10,000m² commercial development site at Pier Street on the fringe of the Perth CBD. The total equity allocated for CHOF 5 to date since closing the Fund on the 28 May 2007 is approximately $102 million representing 34% of the $300 million of equity committed for this fund. CHOF5 has approximately $1 billion (end value) of capacity and has other potential projects either currently under due diligence or at an advanced stage.
The property is located at 1406-1408 Anzac Parade in Little Bay at the southern end of Sydney's eastern suburb peninsula. The site has an area of approximately 11.42 hectares, and is situated just 14 kilometres from the Sydney CBD and features sweeping views of the Pacific Ocean, Botany Bay and prestigious golf courses.
The site is considered one of %u2018the last' prime coastal site's available on Sydney's eastern coastline and it is anticipated that the development will set a new benchmark for architectural design and integrated master planning, for coastal communities and developments around Australia.
Immediately adjacent to the property is the highly successful and award winning Prince Henry residential estate, incorporating a mix of single, attached and medium density dwellings that have been extremely well received by the market and continue to achieve record prices.
The Little Bay site has an existing consent for a 149 residential lot subdivision, with approved building envelopes, car parking and open space. The opportunity exists to amend the current approval through sensible master planning within Council's existing development controls to provide a more appropriate mix of residential dwellings to suit various market demands.
Michael Winnem, Development Director and CHOF5 Fund Manager said: "The development concept for the project is to provide a range of product from single detached dwellings to medium density accommodation in order to capitalise on the demand for well planned residential communities with excellent local amenities, within close proximity to the Sydney CBD and on a magnificent and accessible section of the Sydney coastline".
Charter Hall's Joint Managing Director, David Southon said: "This type of opportunity is extremely rare and to secure it in an already proven market, where the Sydney residential property prices are trending upwards represents an outstanding opportunity for CHOF5 and its investors. We are confident this development will produce a quality product that will complement its spectacular surroundings".