A Sunshine Coast property fund manager will settle this month on the last of six properties it intends developing in one of the nation’s fastest-growing regions.
Within a few weeks, RM Capital, the Mooloolaba-based fund management arm of developer RM – Rafter Myers, will have settled on properties worth nearly $40 million between Beerwah and Gympie.
The properties include a residential estate in Gympie, industrial land in Cooroy and Beerwah, an office block in Minyama, an iconic retail corner block in Mooloolaba and a residential development site in Maleny. They will be developed to supplement the region’s infrastructure needs.
RM Capital established investment funds for all six projects, outlining plans to purchase the assets, and develop and manage them before selling at an appropriate time. Investors quickly subscribed to each fund, claiming the entire allocation in just a few days.
RM Capital director Remi Rafter said the response indicated that South East Queensland remained one of the country’s hottest property markets, with the Sunshine Coast enjoying a dynamic and resilient economy driven by remarkable population growth and robust government and private investment.
“I have had the benefit of spending 13 years in the army where I worked throughout Australia and numerous countries overseas,” he said.
“There is no place like the Sunshine Coast, and that is being reflected in the ongoing migration to our region.”
Since January, RM Capital has settled, or become unconditional, on six properties. They include a 19.8-hectare parcel of land on Banks Pocket Road, Gympie, which will be developed into 199 residential home sites, with Stage 1 comprising 29 lots ready for an immediate start.
The acquisitions also include the 664sqm Syrenuse corner retail block with eight titles on Mooloolaba Esplanade and Brisbane Road, and a 2,154sqm two-level office block on Nicklin Way, Minyama.
Other sites include a 4,532sqm mixed-use development site in Maleny, a 2ha industrial site in the Cooroy Industrial Precinct where 55 units will be built, and a two-stage strata industrial development on 5,908sqm in Beerwah.
RM Capital, which is rapidly developing a reputation for delivering value-driven property investments, has acquired each property off-market at prices well below current Sunshine Coast benchmarks. It has forecast total returns for fund investors of between 59 per cent and 105 per cent.
Mr Rafter said the speed at which the funds were taken up reflected the trust RM Capital had built with its investors.
“We have an honest and transparent approach with our investment partners,” he said.
“That builds trust and long-term relationships.”
He said that although the funds were quickly snapped up – sometimes opening and closing on the same day – a great deal of research, analysis and consideration went into each project before it was offered to investors.
“We don’t say anything until we have done rigorous due diligence,” he said.
“We don’t just jump in.”
Gross Regional Product on the Sunshine Coast has reached $26.33 billion, with high-value industries providing more than 100,000 job opportunities. The property market reflects this growth, with strong demand across sectors.
With a population increase of 2.5 per cent year on year, the Sunshine Coast is attracting new residents at a pace faster than almost anywhere in the country, with nearly half the growth attributed to overseas migration. The region is poised for continued expansion, with projections indicating a population increase from about 384,500 residents last year to 440,500 by 2032.
Mr Rafter said the Sunshine Coast’s growth also meant careful planning was needed to ensure new projects kept pace with demand.
“The Sunshine Coast will be undersupplied in the medium term,” he said.
“The new planning scheme is unlikely to come into effect in the short term, and even straightforward development applications take a long time and considerable cost before being approved.
“Construction costs will continue to increase, limiting new projects across the region.
“Rafter Myers is working proactively within this environment, delivering well-considered projects that help meet the growing demand for housing, apartments and industrial space while supporting the long-term growth of the Sunshine Coast community.”
Mr Rafter said the region’s strong performance was well recognised.
“The Sunshine Coast is probably the best property market in Australia today,” he said.
“When we go down to Sydney and Melbourne and meet the big institutional fund managers they all see value and are keen to employ capital in South East Queensland.”
