Construction has just commenced on Visionary Investment Group’s $150 million serviced apartments and retail precinct Civic Plaza 88, located at 88 Archer Street in Chatswood.
Leading construction group ICON Constructions has been appointed to build the development, which is scheduled for completion in February, 2016.
The 11 level tower features 212 serviced apartments and represents Visionary Investment Group's first project. Located in close proximity to the Chatswood bus/rail interchange, Westfield and Chatswood Chase Civic Plaza is currently 90 per cent sold, with apartments fetching from $450,000 to $850,000.
"This is an exciting milestone for us to see construction starting on our first development project. Sales at Civic Plaza 88 have been strong and we feel this can be attributed to the quality of the design, the solid credentials of our project team and the financial viability of the serviced apartment offering when compared to standard residential apartment developments."
"Investors are realising the potential offered by Civic Plaza 88 and the strong long-term outlook for the serviced apartment market in Sydney with increasing tourism, particularly among international business travellers who favour serviced apartment accommodation," said Michael Guo, Chief Executive Officer of Visionary Investment Group.
He said that serviced apartment investments also traditionally offer investors greater yield stability when compared to a traditional residential investment with long-term leases, annual rental increases, predictable outgoings and strong taxation benefits.
The Global Serviced Apartments Industry Report 2013/14 has forecast returns for furnished apartments at between 13 and 15 per cent with steady occupancy at above 90 per cent.
Designed by award-winning architects Marchese Partners, Civic Plaza 88 offers fully furnished serviced apartments in studio, one and two bedroom configurations, each offering high-quality finishes and many with large balconies offering views of the Sydney CBD.
Marchese Partners has been responsible for some of Sydney's most iconic residential apartment buildings including 185 Macquarie Street in Sydney's CBD, Republic in East Sydney and Top of the Town in Darlinghurst.
The appointment of Icon Constructions is further testimony to the high quality of Civic Plaza 88 with the builder having completed many top-end residential buildings such as POST at Potts Point, Bondi Icebergs and The Rex hotel conversion in Darlinghurst.