CITIMARK DEFIES THE MARKET, SECURES $200 MILLION TO FUND NEW TOWER

CITIMARK DEFIES THE MARKET, SECURES $200 MILLION TO FUND NEW TOWER

BRISBANE-based Citimark Properties has secured $200 million in funding to add a new gem to the Surfers Paradise skyline.

Construction on the 46-level 210 apartment Markwell Residences is due to begin in the new year, and in a remarkable twist, Citimark managing director Angus Johnson revealed that for the first time in Citimark's history it did not approach the big four banks to fund the project.

"Citimark has a long track record with all four major trading banks and for the first time in our history, we did not approach any of them to fund the construction of Markwell Residences," said Johnson.

According to Johnson, Australia's property development finance climate continues to stifle larger projects, despite the Gold Coast standing out as a market darling.

"The shortage of finance has impacted significantly on new supply despite very evident demand and the Gold Coast having one of the highest population growth projections in Australia," he said.

"We believe the Gold Coast is fundamentally one of the strongest markets in Australia with a significant undersupply, growing population and more than $12 billion in private and public infrastructure investment in the immediate region."

The Gold Coast boasts the lowest vacancy rate across Australia's six largest cities.

National director of Deloitte Real Estate James Walsh, who arranged funding for the Markwell Residences, said the vacancy rate was especially attractive to financiers.

"There is a significantly low supply of new projects actually being constructed in the central Gold Coast region," said Walsh.

"This is reflected in the record low residential vacancy rate across the Gold Coast which was recently estimated at 0.9 per cent."

Johnson added that interest from the Australian market was key to Markwell's sales success, and that most of the sales were sourced from local and Sydney-based agents.

Hutchinson Builders has been appointed to construct the property.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Get our daily business news

Sign up to our free email news updates.

Please tick to verify that you are not a robot

 

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Top tips for successful digital transformation
Partner Content
Digital transformation, when done well, can transform your organisation's operation...
Advertisement

Related Stories

Early-stage funding hits record high as mega-deals drop off

Early-stage funding hits record high as mega-deals drop off

Despite venture capital funding falling by a third for Australian s...

The Star hit with two more shareholder class actions

The Star hit with two more shareholder class actions

Law firms Phi Finney McDonald and Shine Lawyers (ASX: SHJ) have ser...

Owner of Betty's Burgers, Boost Juice returns to Australian hands at $350m valuation

Owner of Betty's Burgers, Boost Juice returns to Australian hands at $350m valuation

The parent company of Boost Juice is set to return to Australian ha...

Emyria, Little Green Pharma shares spike after TGA green light for MDMA and psilocybin

Emyria, Little Green Pharma shares spike after TGA green light for MDMA and psilocybin

Alternative medicines stocks are on a tear today as investors take ...