Property syndicates continue to gain Momentum

Key points:

• Momentum Wealth’s newest syndicate raised $4.5m for a boutique development project in East Victoria Park
• Demand increasing for premium boutique projects in high demand, low supply areas
• Stronger interest in property syndicates especially in this market

Property investment consultancy Momentum Wealth has raised $4.5 million from investors in its newest syndicate for a four-storey, 36 apartment residential development in one of the most vibrant areas in East Victoria Park.

The company has completed its due diligence process and will settle the purchase of the 3,038m2 site at 6-8 Basinghall Street, East Victoria Park in late September, continuing its strategy of buying boutique development sites in areas of high demand and limited supply.

Momentum Wealth’s managing director, Damian Collins, said the high interest received shows sustained demand for quality boutique projects in key locations.

"We’ve been seeing continued and increasing demand for premium boutique projects that have products well aligned to the requirements and appeal of the local market.

"Investors are looking for projects and investment opportunities that stand out, so developers who focus, and are guided by prudent research to inform their strategy, will do better," Mr Collins said.

Nigel Freshwater, head of sales & investments in WA for selling agent, JLL, said the site attracted substantial interest from developers.

"The strategic location of the site on the doorstep to the Perth CBD combined with the high quality, boutique nature of the approved development led to significant interest in the property during the Expressions of Interest campaign," he said.

The site sits just next to the suburb’s main shopping precinct, The Park Centre, and adjacent to the Albany Highway Café Strip, providing an abundance of amenities including quick access to the city, key landmarks and Curtin university.

Mr Collins also highlighted a growing interest in property syndicates amongst their investors.

"Especially in changing markets, investors are recognising the importance of partnering with developers who really understand the dynamics of the local markets to determine the feasibility of the project, and be able to expertly manage the project, on top of the added mitigating factor of not having to invest all or a majority of their funds in one possibly less quality project," he said.

Momentum Wealth is targeting to keep up with the demand by ramping up its syndicated offerings but Mr Collins maintains it will be driven by opportunity, not demand.

"Interest can only take you so far, results are a much better benchmark and driver for continued success so we’ll remain stringent with our criteria," he said.

Momentum Wealth is a research-driven, full-service property investment consultancy dedicated to helping clients build their wealth through property.

We provide an advice-driven service helping clients in the strategic planning, financing, acquisition, development and management of their residential and commercial investment properties.

This holistic service offering provides a one-stop shop for investors to be more effective in accelerating their property wealth journey.

About Damian Collins

Damian Collins is the founder and managing director of Momentum Wealth, a Perth-based property investment consultancy that employs more than 70 staff.

He is also Deputy President of the Real Estate Institute of Western Australia (REIWA) and has earned a Bachelor of Business at RMIT University in Melbourne and a Graduate Diploma in Property at Curtin University in Western Australia. Damian is also a Chartered Accountant.

Damian was a recipient of the prestigious WA Business News 40 under 40 awards in 2007 and was an EY Entrepreneur of the Year finalist in 2015.

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