Australian developer, Flagship Property Holdings has continued its focus on Melbourne’s residential property market as it announces the first of a number of new deals that will add to the developer’s immediate delivery pipeline.
The first project, confirmed today, will see Flagship join forces with Melbourne-based developer, Cranecorp Group, as the financial and development partner to its $35million high-end development at 1 – 3 Otter Street in Collingwood.
The deal will see Flagship work with its chosen financial institution to provide the finance and development services for the project, which is currently in-market and expected to commence construction in the coming months.
The announcement comes off the back of the developer’s successful completion of the new $150m Novotel Hotel in South Wharf, part of the $300m Melbourne Exhibition and Convention Centre (MCEC) expansion, completed last month, and its recent planning submission for a $50million mixed-use development at 195 Lennox Street, Richmond. It is also currently in construction on its $110m Kodo Apartments development in Adelaide, and has secured development approval for its $60m second stage.
An established multi-sector developer in its own right with a project portfolio totaling close to $1b to date, Flagship Property Holdings Chief Executive Officer, Mark Jarman said the move to join Cranecorp was a departure from its traditional business model but flagged it was looking to explore “all opportunities” as it moved to diversify and expand its holdings in 2018.
“ The decision to join Cranecorp as the financial and development partner on its Otter Street project is an opportunistic one, driven by a like-minded approach to development and our desire to strategically expand our holdings in Melbourne’s residential market.
“ We are currently assessing a number of opportunities in Melbourne, however when the opportunity arose to partner with Cranecorp on its existing site, we saw a distinct advantage to execute in the market quickly with a project already in market, of a quality that is befitting of our approach to development.
“ We are of the firm belief that the Melbourne market remains strong and will continue to be into the future, especially in the inner-to-middle ring of up to 10 kilometres from the CBD.
“Melbourne apartment buyers are discerning and savvy, and expect the highest quality, which is aligned with our development philosophy of developing ‘quality over quantity’ in carefully selected areas,” he said.
Flagship has confirmed that Otter St will immediately commence its tender for the construction works, with construction likely to commence in the coming months.