31st July 2013.
Private equity firm Sirona Capital has increased its Fremantle presence by taking a $97 million stake in the Dalgety Wool Stores apartment development from project owner the Match Group.
Sirona is also developing Fremantle’s Kings Square and part-financing a Fremantle hotel. It now has a 50 per cent share in the wool stores project, launched last year as Heirloom Apartments.
Loft apartment presales in the 80-year-old waterfront building were followed by reports of slow sales.
Sirona Capital managing director Matthew McNeilly said the cash injection would allow the sale of the remaining one and two-bedroom remaining one and two-bedroom apartments in one lot.
“Match was looking for a good capital partner to take the project forward, there has been some press about the project stalling in some way but it’s still fundamentally a really good project and we are excited to be involved,” Mr McNeilly said. “Originally the project was going to be developed in two stages but our preference is to do it all in one go and we think the apartment market has the depth to take that.”
Match managing director Lloyd Clark said reports of slow sales were inaccurate.
“In stage one we launched 65 of the 183 apartments and presales were strong, we sold just over 40 and with the improving apartment market and sales we are experiencing across our other Fremantle projects, we went to the market looking for a capital partner to help bring forward the second and final stage,” Mr Clark said.
“We had a lot of interest from potential joint venture partners but selected Sirona based on their synergies with Match and their involvement in Fremantle.”
Match has 300 apartments for sale across five projects in and around Fremantle and 70 to 80 per cent of those had sold off-the-plan.