Ian McGarry, Managing Director of Maquadev joins us to talk us through his latest development project in Templestowe, Melbourne.
Hi Ian, could you please tell us a bit about yourself and Maquadev?
I started out in the construction industry, starting out as a carpenter before moving on to become a registered builder. I am the Managing Director of a construction company predominantly based in Melbourne. Maquadev is a residential property development company based in Melbourne and looking to expand into Sydney and other areas of Australia where there is great potential.
Maquadev is a relatively new company, and we are looking to grow the business by putting together a pipeline of projects. To do this we will require funding. We are currently developing a site in the eastern suburb of Melbourne called Templestowe, roughly 15km from the CBD with great access to major shopping centres, schools, universities and the City. We are looking to raise funds to carry out the development with the intention to on sell the completed townhouses.
What is the project?
What we are looking to develop is a 4-town house site. They will be larger over size townhouses with a mix of 3 and 4 bedrooms. They will be much larger than the standard small apartments you currently get in Melbourne, with lots of basement, parking and storage.
Why did you decide to develop large town houses?
There is a gap in the market for this size of development and they are primarily sought after by young families and investors. There are also downsizers looking to move out of the large family home. These larger townhouses appeal to a wide range of people.
Why develop in Melbourne?
We are based in Melbourne, and we like Melbourne and Sydney for development. When you look at Australia, these are the two biggest and fasted growing cities by quite a long way. Both cities are well over 5 million people each and growing at a rate of 4% every year. The demand for housing is quite high.
What type of funding are you looking for?
We are looking at 3 different options for investors, 2 of which are available now.
We are looking for people to invest directly in Maquadev, to become equity shareholders of Maquadev, which will enable us to put together a pipeline of development sites across Sydney and Melbourne, while also evaluating other opportunities that come up from time to time across the country.
Another option is for people to invest directly into our finished products (our townhouses). We are always happy to introduce potential new customers to our high quality range of housing.
We will have a third option in the future… once we have started construction on the Templestowe site, we will start looking to source more development sites. Then we will set up a special entity for each site and people will have the option to invest in individual projects and as opposed to the company itself.
Why are you developing the third option?
Some people are keen to invest into a development but may not want to invest into multiple sites, especially when investors are investing for the first time into Australian property. This third option means people can invest in one development at a time and at the end of the project, all input funds and profits will be dispersed back to the shareholders. They can then invest in another development later on. It offers greater flexibility.
Why invest with Maquadev?
The product that we are developing is in great demand and we have a developed search criteria which takes into consideration things like economic growth of the area, population growth, existing and planned infrastructure, public transport and ease of access to major work and amenity hubs to establish the feasibility of the project. We also look at the general livability of an area; this is something that cannot be easily measured, but being a native of Melbourne for 30 years, it’s something we can judge very well.
Our projects are also medium to high end quality products. This is a point of difference between us and other developers doing smaller townhouses with a lower quality finish.
How has COVID impacted you?
COVID has impacted everyone one way or another – the world has stopped momentarily and it feels like everything has gone into slow motion. There is definitely light at the end of the tunnel now in Australia and hopefully for all other countries. We have been keeping an eye on the property figures for April and prices have not dropped as predicted. People are not buying or selling, there are no transactions and people are just waiting. Things are now in a holding pattern.
However, restrictions are now being lifted due to Australia’s good reaction to the pandemic and this will bring confidence back in the second half of 2020, especially for the property industry.
Facebook: Maquadev Property Group