THE EQUUS OPPORTUNITY Equus is currently our flagship development property in Perth, Australia for which IBI Properties hold the sole marketing rights in Africa.
Equus Equus is one of the most exciting developments in Perth: Situated on a brick-paved pedestrian mall at the corner of Hay and Barrack Streets, Equus will overlook the Cathedral, Government Offices and park, which lead down to the Swan River. The development will rise 27 storeys on the site of the historic Cinema City complex, following its demolition in November and December 2007. Construction will then begin of 150 apartments, above 7 floors of commercial office space and an arcade of quality retail shops and restaurants. Equus presents a golden opportunity for offshore investors to get in on the ground floor of this new development, due for completion in 2011. 15% deposit will secure an apartment, to be held in trust by one of the largest legal and conveyancing firms in Western Australia. Contact us for further details of this arrangement. Your deposit will earn in excess of 6% interest * (depends on finance conditions) until settlement of your apartment purchase in approximately March 2011.
The balance of the purchase price has to be secured within 30 days of you signing your Agreement of Purchase by way of a Mortgage or Bank Guarantee or Cash Deposit. The maximum mortgage available to South African residents will be 70% of the purchase price, while the balance of your deposit (15%) will have to be paid by March 2011. This gives you a unique opportunity to enter the market with a minimum amount of initial capital and gives you time to raise the balance of the deposit. Price is also locked-in and with the rapid growth of property prices and demand in Western Australia, this should be an excellent investment. Contact Ian Burgoyne International Properties for details on how to qualify for a loan through our brokers in Perth.

THE EQUUS DEVELOPMENT

Equus is a luxury skyscraper offering shops, offices and apartments, in the heart of the Perth CBD, on the site of the historic Cinema City complex.

The map below is the CBD of Perth - Equus is on the corner or Barrack and Hay Streets. ( directly under the word District , above the red dot 22)

Equus is situated on the corner of Hay and Barrack Streets, at the east end of the Hay Street Shopping Mall and will overlook the Cathedral, Government Offices and park, which lead down to the Swan River. Recently the central section of Hay Street was closed to traffic, brick paved and turned into a pedestrian shopping mall. The current Government Revenue Services Building in Hay Street, adjacent to the Cathedral, is to be demolished in the next 24 months and turned into a secure green space, to be called the Cathedral Park. As a result, all the south-facing apartments in Equus will have an unimpeded panoramic view over the Cathedral and the Park, down to the water’s edge on the Swan River. West-facing apartments will have a view over the city towards the ocean. North and east-facing apartments will have sweeping views of the hills to the east of the city. The Equus arcade will provide a link between Hay Street and Murray Street and easy access to the city’s most sophisticated and up-market shops. The development will have two separate elevator banks; one serving the executive wing in the front or south-facing tower and apartments, and the other serving the main tower and its west and north-facing apartments. Aerial View of CBD Perth. Swan River on top left. Equus just off centre left.

LOCATION, LOCATION, LOCATION..........

Equus has been in planning for four years and this showpiece development represents a meeting of city-planning and architectural minds, as the centrepiece of the next stage of Perth’s renaissance. A dynamic city of 1.5 million people, Perth is the capital of Western Australia and is the premier destination for business, entertainment, nightlife, culture and the arts. To put this into perspective, Western Australia’s domestic economy grew at 14% in the June quarter; higher than China’s growth rate of 11.3% and significantly higher than Australia’s GDP growth rate of 12.3%.

This underscores the inherent value of investment in a state-of-the-art 27-storey retail, office and apartment tower in the heart of Perth. Equus is set to become an extremely desirable address in Australia’s most desirable investment location, in a region increasingly driven by China’s accelerating growth. Recognition of this exceptional location is evidenced by the fact that the seven floors of offices above the retail mall are already pre-sold. 150 luxury apartments on 20 floors, as well as 7 penthouses atop this stunning building, are now available for investment — up to 50% of which can be purchased by South African offshore buyers.

Each apartment, depending on its size and cost, will have either one or two secure car parking spaces in the basement of Equus. This is hugely important in any CBD, and these parking spaces will each have a minimum value of about AU$50 000. Each apartment also has a lock-up storeroom, varying in size in relation to the apartment. On the 7th Floor of Equus, there will be a swimming pool, gymnasium, and exercise area, while the shopping arcade and mall will boast cosmopolitan restaurants, coffee shops and wine bars.

DEVELOPMENT TIMING

Demolition of Cinema City should commence in November 2007 and all existing tenants have already vacated this historic site. Development will commence with construction of the basement parking, scheduled for January 2008. Final completion of the building is expected in March 2011, with up to a 12-month overrun clause included in the Agreement of Sale. It is important to remember that your deposit is not paid to the developer until the building is totally complete and Perth City Council has issued an Occupation Certificate. This protects your investment in the most complete way, while you continue to earn more than * 6% interest ( depends on finance conditions ) on your 15% deposit.

THE EQUUS DEVELOPER

Equus is being developed by Birchwood Consolidated (Private) Limited, representing the Wright family, who left Africa in 1976 and set up a development company in Australia, where they have been extremely successful. Several of their recent developments are illustrated and their website (www.ellement996.com.au) will provide an overview of their latest development to be completed. Initiated in 2004, this is now completely sold out.

With over 30 years of experience in the building and development industry in Western Australia, the Wright family are well positioned to make informed decisions on investment. The Equus project represents a major investment for Birchwood Consolidated and has been four years in the planning to ensure that the sensitivity of the site is not compromised. The Wright family have every confidence that it will be an asset to Perth, and to those investing in it. Simon Wright, one of the founding directors of the family company, is quite willing to take personal calls from off-shore investors interested in Equus. For his direct line phone number contact us at IBI.

SYNDICATION

Investment in Equus can be syndicated: IBI Properties have retained the services of an Australian broker, who advises that such syndicates should not exceed four members. This suggested limit reflects the attitudes of Australian banks and volumes of paperwork required. However, proposals for larger syndicates will be considered and discussed. Syndication certainly facilitates investment by family, friends or business partners and may make it more affordable for the first-time investor. Please contact us to discuss this further.

RENTING OUT YOUR APARTMENT

You may wish to hand over the renting of your apartment in Equus to one of the top rental agencies in Perth. Commission rates vary between * 8% and 10% to fully manage the property. Whether or not to furnish your apartment is another issue which requires some thought.

Current rentals for apartments of similar size to those in Equus, but with only one bathroom, range around AU$550 per week. However, all two-bedroomed apartments in Equus have two bathrooms, suggesting a higher rental expectation: The evidence is that a second bathroom increases the rental return significantly, as it allows young executives to share an apartment without compromising their personal space. Research suggests that likely tenants are going to be 25 to 35 year-old upwardly-mobile executives working in the city, who want a lock-up and go apartment in the central CBD. This eliminates the need to drive or use public transport to get to work, increasing the percentage of disposable income available for other life-style choices.

Western Australia is a lively, cosmopolitan environment with an exciting entertainment and restaurant culture; Equus is well-positioned for upwardly-mobile young executives to enjoy a diverse night life within easy walking distance. Equus opens onto the Hay Street pedestrian shopping mall, already known as the ‘Cappuccino Strip of Western Australia’.

In terms of comparative rentals, Ellement966 (an apartment block about 1km west of Equus and slightly out of the CBD), offers two-bedroomed, single-bathroom apartments for between * AU$550 and AU$600 per week — and is fully rented. It would therefore be reasonable to assume that a better-located two-bedroomed, two-bathroom apartment in Equus will fetch over * AU$700 per week by 2011.

If you are investing to provide long-term financial security — a pension by definition — rental on an apartment in Equus will help pay off and liquidate the initial investment. A rental of * AU$700 per week in 2011, assuming an exchange rate of * R10 to AU$1, could provide a return of R7000 per week, or R28000 per month — in a strong currency, with the added benefit of capital appreciation. If you elect to top-up the rental return and liquidate the bond in short order, this would represent net income, rising with inflation. The bottom line is an expected * 4% net return on your purchase price, with the security of a highly tradable asset at your disposal.

PERTH AS AN INVESTMENT DESTINATION

Perth, capital city of Western Australia, really is a beautiful city: The city centre is located alongside the peaceful waters of the Swan River, twenty kilometres inland of the Indian Ocean on the West Coast of Australia. The Swan Valley is steeped in history and is one of Western Australia's oldest wine regions, home to more than 40 vineyards, many of which are still run by the original families which started the wineries many years ago.

The Perth city centre bustles with activity, but if you enjoy long relaxing walks along clean sandy beaches or swimming in the surf on a warm sunny day, the Sunset Coast of Perth is for you. The port city of Freemantle lies just south of Perth on the coast, and is popular for its weekend markets, entertainment and alfresco lifestyle.

Perth’s garden-city status is jealously protected and planning policies ensure that gardens and protected areas in the CBD considerably exceed the area of its buildings. Perth has a Mediterranean climate, is easily accessible from the Far East, sharing a common time-zone as the major trading centres of the East. It is capital of the base-metals and resource industry of Australia, which is currently being driven by an almost unquenchable appetite from China and India. BHP Billiton has just been granted planning permission to build an enormous new headquarters complex behind the Convention Centre in Perth, and signals a corporate influx to the city. Long-term capital growth prospects are excellent, as are assured rental returns. In fact, Perth’s property prices have climbed over the last three-years to the extent that they now exceed those of Sydney.

Population growth predictions indicate an 18.7% population increase in Western Australia by 2020. As a relatively new city in a dramatic growth spiral, Perth has never had comparatively low-cost apartments available in the CBD. (See recent newspaper articles on our Website). With the introduction of Equus and its unique position on the Hay Street mall, amongst some of the most beautiful high-rise office buildings in the world, the Perth CBD is set to provide a remarkable return on investment.