East Bank by Psaros to be completed by September 2018

PETALING JAYA (April 29): Psaros Development Pty Ltd, a subsidiary of Psaros Group, has partnered United Overseas Australia Ltd (UOA Ltd) to develop the East Bank by Psaros apartment project in Perth, Australia. The project is slated for completion next September.

The special purpose entity, East Parade Pty Ltd, in which UOA Ltd owns 51%, was set up in February. The partnership marks UOA Ltd’s entry into the Australian real estate market. Presently it does not have a landbank.

According to Psaros Development managing director Mike Enslin, the freehold 8-storey East Bank by Psaros will feature 70 1- and 2-bedroom apartments and three commercial units on the ground floor.

Sitting on a 22,023 sq ft parcel and with two street frontages along East Parade and Kensington Street, the project has a gross development value of A$35 million (about RM113.66 million). Upon completion, it will have a total net lettable area of 50,978 sq ft (excluding balconies) and a gross building area of 100,793 sq ft.

The apartment units will have built-ups ranging from 560 sq ft to 1,055 sq ft. Prices range from A$379,000 to A$709,000.

“East Bank is designed with premium fixtures and fittings, including bamboo floors, high ceilings and European appliances. The demolition of the old building [which sat on the site] has been completed and we expect construction to start in early May.

“The project was launched in Perth for the first half of 2016 and we used the rest of the year to seek a partner for the project, which led us to our partnership with UOA Ltd.

“East Bank by Psaros has been exceptionally well received so far. We have also sold a selection of the apartments in Singapore and Malaysia,” Enslin told City & Country.

On projected rental and yield returns, he said the rent will start at A$350 per week for the 1-bedroom apartments and approach A$700 per week for the top-floor penthouse apartments.

“We expect a yield of approximately 4%. The project is over 60% sold so far,” added Enslin.

East Bank by Psaros is offering buyers the option of entering into an unconditional contract of sale with a 10% cash deposit. There are no further payments until the project is completed.

Ensline also noted that there has been a “strong interest” among Malaysian buyers, with 10% to 15% of sales coming from them.

“Among the buyers are investors, parents of university students and individuals who simply want a base in Perth,” he said, adding that the project’s target audience are young professionals, the inward migrating workforce, investors, pre-retirees, downsizers, students and families.