Lofty ambitions for Varsity Lakes team
WHEN it comes to tower developers, the latest “team” hardly could be viewed as being out of the normal high-rise mould.
A consortium which has lofty ambitions at Varsity Lakes does not include the butcher, the baker and the candlestick maker but rather a retail boss, an ex-shopkeeper, a home builder and a South African principal of a construction company. Throw in the listed Sunland Group and you have the shareholders in 8500, a company which owns a 1.3ha site in the lakefront suburb.
It appears to have ambitions of building at least one tower, and possibly two, on the Main St holding.
The land was, until the 201718 year, owned by Sunland but then was moved into what was termed a special-purpose vehicle: 8500.
The major shareholder in that “vehicle”, with 40 per cent of the capital, is Ron Bakir, onetime mobile phone retailer who turned residential builder and has been delivering hundreds of homes a year.
Late last year, he sold 51 per cent of his Homecorp Constructions business to Japan’s Misawa group, which is controlled by Toyota.
A company linked to Steve Cavalier, boss man at Harvey Norman Bundall, owns 10 per cent of 8500.
Former Retravision retailer Sep Abedian, brother of Sunland chairman Soheil Abedian, has a similar stake.
A company directed by Steve Marais, a founder of Robina-based construction group Condev, controls 15 per cent and Sunland is sitting on
the balance of 25 per cent.
The bulk of the Main St site today owned by 8500 was bought by Sunland from Varsity Lakes developer Delfin for $3.85 million in 2013.
It was enlarged by buying a road reserve into the middle of the site, for the Capital Court cul-de-sac, from the city council. Sunland put the complete holding on the market, unsuccessfully, in 2017, apparently hoping to achieve north of $10 million.
The 8500 transaction is believed to have been sub$10 million but still was profitable for Sunland.
The land’s centre zoning allows everything from shops, offices and entertainment through to apartments.
Late last year, the 8500 partners were believed to be wavering between building one tower or two, but the twintower option might have its nose in front.
An earlier suggestion that the site might be used for student accommodation appears to have been wide of the mark.
The make-up of 8500 offers some obvious synergies when it comes to development, including the potential for Harvey Norman to supply whitegoods etc, Sunland to handle tower design and help with the marketing, and for Condev to be the builder.
Condev already is in business with Sunland – it’s building the group’s Magnoli project at Palm Beach.
Meanwhile, the project and its design could well stir some interest from aspiring architects – Bond Uni’s Abedian School of Architecture is nearby.