06/08/2018 - 15:55

MGroup’s Monument moves at Beeliar

06/08/2018 - 15:55

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Integrated property business MGroup has added another string to its bow with the launch of a new land development brand – Monument.

MGroup’s Monument moves at Beeliar
John Wroth (left) and Lloyd Clark (right) will formally launch the new land estate in Beeliar later this month. Photos: Gabriel Oliveira

Integrated property business MGroup has added another string to its bow with the launch of a new land development brand – Monument.

Making an initial foray into a sector at a time of sluggish activity may seem like a counterintuitive business decision, but MGroup’s recent diversification into land development has proved a valuable investment.

Late last year, Western Australia-based MGroup made its debut in the sector with a 67-lot estate in Secret Harbour, which managing director Lloyd Clark said was now mostly sold.

The group will formally launch a second land estate later this month, in Beeliar, with a new brand called Monument to govern its land development arm.

Local structure plan approval has already been granted for 171 residential lots across the 11.8-hectare land parcel in Beeliar, with the release of lots expected in four stages over the next two to three years.

The Beeliar land estate will also include integrated parkland and the preservation of a number of established tuart trees.

“The introduction of Monument is the final piece in the puzzle for MGroup’s diversified portfolio, making the company extremely well placed for growth within varying market conditions,” Mr Clark told Business News

“We saw land as an environment where many property developers were retreating, so there was an opportunity to take advantage of some off-market development opportunities that only become available as a result of the slowing down of the sector.”

Mr Clark founded MGroup, formerly known as Match, in 2001 as a boutique apartment developer before branching out to comprise real estate services, construction, maintenance works, and land development.

The group also has investment and financing capabilities, including shopping centres, in its portfolio.

Mr Clark said Monument aimed to emulate the success of MGroup’s apartment brand, Match, by creating an independent entity within the organisation.

John Wroth, a former executive at ASX-listed property developer Port Bouvard, joined MGroup in 2015, appointed to launch its land activities and will now also head Monument.

“We were confident that the (land) sector had bottomed, so we saw it as a low-risk entry opportunity for our group to diversify and deliver opportunities to our more traditional built-form developments,” Mr Clark said.

“And that’s been proven the case with the sales success we’ve had at our Secret Harbour project. It was the last remaining development site in a well-established estate.

“Similarly with Beeliar; it’s the last remaining infill site in the area on an elevated tuart ridge, it’s surrounded by an established community and only 25 minutes from Perth.

“So we really had little doubt in that it would be very attractive in terms of market demand.”

“Our point of difference will be to retain as many mature tuart trees and work closely with the natural topography of the land; there’ll be a mix of vistas, from ocean views to natural parkland settings.

“It’s certainly very different to your more traditional cookie-cutter land estate that we so often see.”

The Beeliar land estate.

MGroup acquired the Beeliar site in June off the back of an oversubscribed investment fund that raised $13.85 million, and Mr Clark said lot size would vary from 220 square metres to about 550sqm.

Located south-west of the CBD, Beeliar is Perth’s second largest growth corridor, according to consultancy Research4, with other residential developments in the area including Stockland’s Calleya and Aigle Royal’s Ravenna estates.

“We’re on a strong acquisition path and we’re actively looking to build a development pipeline,” Mr Clark said.

“I think what we’ve experienced over the past few years, while it may have been extreme, it’s still reflective of a typical property cycle.

“We remain positive about the local economy and we don’t expect to see the population spike like the previous mining boom, but signs of recovery are evident and confidence is certainly improving.”

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