White & Partners recognised an opportunity in the Jannali Hotel to transform an under-utilised land holding of 4,249sqm into a mixed use development consisting of residential apartments and a ground floor tavern. White & Partners paid an acquisition price of $10 million, which included the land, hotel, gaming entitlements and liquor licensing.
Even though Union Place would be the first apartment project in Jannali, the site benefited from being adjoined to the main Jannali Town Centre and located opposite the railway station. A train ride to the Sydney CBD takes 35 minutes.
White & Partners achieved Development Approval (DA) for 89 apartments in a twin tower design along with a 670sqm ground floor retail space with intended future use as a tavern. Since settlement, our hotel partner, JDA Hotels has been running the hotel, generating an annual cashflow of $850,000 which was used to fund the DA.
Following DA approval, the Jannali Hotel was revalued at $16.5 million, representing an appreciation of 65% in 14 months. The residential apartments have been 50% pre sold within four months of the date of launch.
Moving forward, White & Partners is focused on marketing and selling the remaining apartments and project managing the construction process.