Moelis buys 54 unsold South Village at Kirrawee apartments
Moelis has bought 54 apartments in Vision, South Village at Kirrawee.
Development company Payce negotiated a deal with Moelis Australia to sell all the units in the six-storey Flora Street building for $28.5 million.
The investment company's purchase was first reported by the local paper, the St George Leader, as being at "about 30% below peak sale prices".
A followup story by Nine Enertainment suggested the deal came at a discount of between 20-25% based on market prices for units sold in the area last year.
Moelis is seeking investors to finance the purchase of the apartments, which will be rented.
The Moelis prospectus said rental income from the apartments was expected to grow at a rate of 3.5% a year.
The prospectus said the purchase price was a discount of about 30% on peak prices at South Village and 20% below those achieved in 2019.
"The block includes 29 one-bedroom, 24 two-bedroom and one three-bedroom units," he said.
"The sale price is comparable to selling the units individually on the open market when all selling costs are included.
"These costs include GST, agent commissions, marketing costs, holding costs and buyer incentive offers.
"The apartment block is the only one of seven in the development on the former brick pit site that Payce had to sell on completion.
Co-developer Decor had the remainder, telling the local paper their apartments were "selling very well".
"About 600 have been sold to date, with about 180 to go."
