FLAGSHIP Property Holdings, backed by Kerry Stokes’ Seven Group Holdings and Plenary Group, has stepped in at the eleventh hour to refinance a $35 million Collingwood apartment project one day before its site was taken to a mortgagee’s auction.
Developer Cranecorp Group, which paid $4.5 million for the 1-3 Otter Street in Melbourne’s popular inner-north suburb in 2015, had sold only 10 of the 17 units, delaying construction, and co-developer Icon was seeking repayment for its loan to Cranecorp that allowed the land purchase.
A tender process for the construction works at the site commence immediately following Flagship’s investment, and construction is expected to begin in the coming month.
Mark Jarman, Flagship’s chief executive officer, said the move to join Cranecorp was a departure from its traditional business model.
“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 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.” Jarman said.
Flagship’s project portfolio totals nearly $1 billion, and the developer has just completed the $150 million Novotel Hotel in South Wharf and part of the $300 million Melbourne Exhibition and Convention Centre expansion.
Australian Property Journal
