VELOCITY SHELVES PLANS FOR PALM BEACH TOWER

THE listed Velocity Property Group has canned plans for a second boutique luxury beachfront apartment tower at Palm Beach and sold its site at a profit.

Velocity says the move to exit the project follows an internal review triggered by the COVID-19 pandemic. The group paid $9 million in 2018 for 1229sq m at 488 The Esplanade and has sold it for $11.15 million.

It planned a building called Two27, which was to be a follow-up to its debut in the beachfront suburb, One Palm Beach.

One apartment remains for sale in that project, in which Velocity set a Palm Beach beachfront record for 2019 with the $4 million sale of the penthouse.

Two27 was earmarked by Velocity to be the first project in the series of development syndicates.

Earlier this year Velocity took 360 Capital aboard as a cornerstone investor and said it was going to a “capital light” approach to its Two27.

An investor development syndicate was to be formed for the project, with Velocity contributing 20 per cent of the necessary equity.

The Two27 site was sold to real estate principal Christie Leet’s Sherpa group, which plans three beachfront homes and nine full-floor apartments.

Brisbane-based Velocity, headed by Brendon Ansell, told the ASX that net proceeds of the sale are expected to be $4.6 million after paying selling expenses and repaying a loan taken out to buy the land. Velocity says it is focusing on maximising shareholder value on a Burleigh site.