Friday 2 June 2006

Victoria Point Tower also attracts a rental rush

Devine has recently sold four of its penthouses and sub-penthouses, each for more than $2-Million, at its 'Victoria Point Tower' - the tallest and most aesthetically commanding structure at Melbourne's Docklands.

It also has negotiated a total of 170 new residential leases within the past 12 weeks at the $338-Million complex.

The activity comes at a time when inner Melbourne is recording a vacancy rate of 1.6 per cent, according to March research released by the Real Estate Institute of Victoria. (Source: www.reiv.com.au)

At 150-metres - with sail-like features and a vibrant metallic facade - 'Victoria Point Tower' comprises 449 one, two, three and four-bedroom apartments. The building also houses a 25-metre heated lap pool and a fully equipped health club and recreational centre which is being run by the YMCA.

In the past two months, Devine has sold four penthouses for between $2.09-Million and $2.252-Million. Overall, apartments in 'Victoria Point Tower' have ranged from $302,000 to $2.65-Million.

The residential leasing has been negotiated by community managers Stewart Silver King and Burns (SSKB) and associated company Victoria Point Docklands Real Estate which, together, are responsible for the management, operation, and letting of the tower.

Devine managing director David Devine said the leasing campaign for 'Victoria Point' had commenced in November 2005 and demonstrated the company's ongoing commitment to lock-in healthy returns for investors within its projects.

"We expect to complete settlement of apartments within the residential tower within five weeks," Mr Devine said. "Analysts are expecting the recent interest rate rise to generate further demand within the already-tight Melbourne rental market."

The recent leases are being struck at rentals reflecting an average 4 per cent return to investors, calculated on the unit purchase price.

SSKB invested $250,000 on its 'Victoria Point' rental campaign which included establishing a temporary on-site office to channel tenant enquiries before the apartments could be physically inspected.

"We are confident that SSKB's proactive efforts and management commitment will ensure investors receive strong and immediate returns, as well as capital growth in the medium term above the market average," Mr Devine said.

The 'Victoria Point' development marked Devine's entry into the Melbourne high-rise property market after the Brisbane-based group secured control of the prime site in mid-2002. The golden landmark overlooks Victoria Harbour to the west, Port Phillip Bay to the south, Melbourne CBD to the east and Telstra Dome to the north. It includes a stunning 43-level residential tower, serviced apartments, commercial and retail complex and parking for 620 cars.

Stage one of the multi-faceted complex, which was completed four weeks ahead of schedule, involved a nine-storey commercial component with a lavish fit-out, and ground floor retail outlets on Harbour Esplanade. Devine sold this building to Australian Property Network, who secured the Bendigo Bank Melbourne as its sole tenant.

The second stage of 'Victoria Point' - a podium-level building comprising 105-serviced apartments - was completed 11 weeks early. Devine secured Australia's largest serviced accommodation provider, Quest, who began operating Quest Docklands in mid-September, 2005.

Stage three is the eye-catching residential tower fronting Bourke Street and Harbour Esplanade.

'Victoria Point' is the largest project ever undertaken by Devine, which was established in Queensland by Mr Devine in 1981. Today the publicly-listed company has projects totaling $2-billion underway or planned in Victoria, Queensland and South Australia.

"This is our signature project, and one I'm very proud of," said Mr Devine.

The tower optimises solar access, maximises natural light, minimises overshadowing of public and private open spaces, and the architecture gives the building spatial transparency. Its curvaceous facade is predominantly glass with lustrous metal paneling and recessed balconies.

"The tower has been designed to complement, not competing with, existing and future proposed public realm amenities at Docklands," said Mr Devine.

Within the apartments, living areas and bedrooms are arranged cleverly to balance the needs for privacy as well as capture good natural light.

Master bathrooms have a bath/shower, recessed cistern, large mirrors and colour co-ordinated vitreous tiles, while master bedrooms have 'his and hers' glass-fronted robes. There also is plenty of wardrobe space in other bedrooms.

Up-market finishes in kitchens include stone benchtops, stainless steel European appliances, glass splashbacks and halogen lighting.

"We are proud to have participated within the Docklands development, which is one of the world's most significant urban renewal projects and is already home to around 6,000 permanent residents," Mr Devine said.

Devine has significantly bolstered its Victorian activities in recent months, unveiling plans for a $200 million residential estate at Deer Park, 20 kilometres west of Melbourne's GPO. Devine has also forged an agreement with Macquarie Bank's Urban Pacific to acquire 165 lots in its Moorookyle Estate in Melbourne's south-western suburb of Tarneit.

The company reported a $10.69 million December half net profit and forecast that the settlement of units in 'Victoria Point' under AIFRS would have a positive impact on Devine's full year result.

Released by: Devine Victoria, 85 Coventry St, South Melbourne, Victoria 3205
Contacts: Noel Madigan, Development Director, Ph: (03) 9600 0844, 0439 853 022

Prepared by: Barry Hyland, PR Plus, Level 1, 272 Pacific Highway, Crows Nest 2065;
Ph: (02) 9439 9191, (0412) 354 992; Email: pluspr@ozemail.com.au