Dexus opportunity fund backs over-55s resort apartments
A Dexus opportunity fund which co-invests, co-develops and has a credit arm targeting projects traditional sources could be reluctant – has backed a Newcastle over-55s community seven years in planning.
The Dexus Real Estate Partnership 2 will joint venture with Third.i to deliver The Merewether Residences, on a hectare abutting Merewether Golf Club fairways.
With an end value of $300 million, the resort style village will contain 178 apartments – a mix of one, two and three bedrooms – expected to accommodate c300 residents.
A health and wellness space, cinema, pool and new golf course clubhouse also forms part of the design put forward before COVID by ThirdAge Villages and the golf club.
Third.i announced January it appointed a builder – Decode Group; the first stage of enabling works saw the demolition of the greenskeepers shed.
The new golf clubhouse for the 18-hole course will be delivered first – by late next year.
The Merewether Residences apartments should be complete in late 2027.
The announcement comes a month since we reported Revelop bought a former piece of the Port Kembla Golf Club, near Wollongong, for a convenience retail investment.
Project size recently upped
State government authorities backed the apartment-based over-55s community in 2021.
Recently, Third.i won permission to add a level and 36 dwellings “marking a significant milestone and further solidifying the project’s trajectory towards success,” director and co-founder, Luke Berry, said.
The developer will oversee construction and delivery.
Elsewhere in Newcastle, the group is behind the WEST Apartments, Eaton on Union and Stella on Hannell.
It is also constructing Dairy Farmers Towers at Newcastle West – via Decode.
“As a joint venture partner, DREP plays a critical role in providing capital funding to support the development, recognising the strength of our expertise in executing large-scale projects in the living sector,” Mr Berry said of the Merewether Residences commitment.
Dexus’ first Real Estate Partnership – DREP1 – with a c$1 billion mandate, made its maiden investments four years ago, including financially backing an Elsternwick residential project.
In 2023, it bought 120 apartments in two towers – again in the Victorian capital.
Last year meanwhile DREP1 teamed with Goldfields to propose a nine level residential complex with 125 dwellings in Cremorne – in Melbourne’s inner east.
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