Central Equity heads back to Perth to find willing apartment investors

Central Equity heads back to Perth to find willing apartment investors
Central Equity heads back to Perth to find willing apartment investors

Central Equity, one of Melbourne’s biggest apartment builders, is heading west in an effort to find willing and wealthier buyers for its latest Melbourne apartment projects.

Central Equity is seeking off-the-plan Perth investors in a new apartment project in Southbank called Grand, with prices starting from $359,000 as part of a “Perth priority release” as well as buyers of its other projects.

Southbank Grand is 43-level glass tower featuring emerald-coloured glass and a seven-star energy rating.

The privately owned developer, credited for changing the skyline of Melbourne with more 70 residential projects under its belt, will hold 45-minute information sessions at the Perth Convention Centre Adina Hotel between February 21 and February 24.

Attendees will be given an update on the Melbourne property market and meet a Melbourne-based lawyer who specialises in Victorian property. A major banks will be in attendance for those who bring their chequebooks.

To sweeten the deal, Central Equity is offering a free night’s accommodation to attendees who subsequently fly over from Perth and book one night at one of its short-stay venues in Melbourne.

Central Equity has just completed building the 43-level Mainpoint tower on City Road in South Bank and commenced construction of the 38-level Epic tower also in Southbank (pictured below), with one-bedroom apartments priced from $389,000.

grand

The advertisements for the information seminars promote Melbourne’s best attributes including its reputation as the world’s most livable city as well as the opportunity to secure significant stamp duty savings.

This is the not the first time Central Equity has tried flogging apartments to Perth buyers, tapping into the stronger WA economy, cashed-up investor with higher wages earned from the mining boom and an AFL-inspired affinity among Perth investors for Melbourne over Sydney and other capital city property markets.

In April 2011, Central Equity undertook a Perth roadshow selling Melbourne CBD apartments as well as house-and-land packages in Point Cook, Mernda and Mount Martha.

Commenting at the time, Urban Development Institute of Australia (UDIA) executive director Tony De Domenico said there was a lot of interest in Victoria from ''cashed-up workers'' from Perth and Queensland.

Agents promoting Central Equity investments to Perth buyers said Melbourne appealed over other capital cities because there are a few more similarities such as AFL and its greater affordability relative to Sydney.

This time round, Central Equity will be looking again to garner demand from Perth investors given the disparity between the Victorian economy and the WA economy.

Central Equity produced poor 2012 financial year annual results with its net profits halving to $19.5 million as demand slowed for apartments in Melbourne.

The company reported a 43% drop in revenue from $184 million to $104.6 million.

Central Equity was founded by Eddie Kutner and schoolteachers Dennis Wilson and John Bourke in 1987 and was listed on the ASX until it was privatised in 2006.

Larry Schlesinger

Larry Schlesinger

Larry Schlesinger was a property writer at Property Observer

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