A multi-storey car park in the heart of a booming medical precinct has just received a multimillion-dollar cash injection.
The eight-level car park next to Sunshine Coast University Hospital comprises 581 parking spaces and five ground-floor retail tenancies.
RM Capital, the investment management arm of RM Developments, sought to raise $11.2 million and was “thrilled” when 21 investors pledged the amount faster than anticipated.
RM Developments director Remi Rafter said all 21 investors would share in the ownership of Oceanside Car Park at Birtinya, which was purchased off-market through direct negotiations with the vendor.
“The car park is located directly across the road from the Sunshine Coast University Hospital, one of Queensland’s leading hospitals, in one of the fastest-growing regions of Australia,” he said.
The asset was purchased for almost $21 million.
The car park is currently operated under a management agreement with Secure Parking and there is 768sqm of retail space on the ground floor.
Mr Rafter said RM Developments had targeted the asset “for some time”.
The catchment area for the car park is only 43 per cent developed, with four nearby vacant commercial sites that will considerably increase car park demand in the future once developed.
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There are restrictions on the amount of parking that can be provided at those sites, with no town planning options for additional commercial car parks.
Mr Rafter was confident investors would be well rewarded for their support of the offer.
“We consider this investment will deliver superior risk-adjusted returns over the medium term through our active management strategy,” he said.
RM Developments currently manages 26 projects throughout Queensland. Mr Rafter operates it in partnership with his former Australian Army colleague Josh Myers.
