Michael Fox's new boutique development venture is "gathering momentum" after quietly buying five development sites for more than $60 million.
In the process CostaFox, a joint venture between the former Little Projects executive and Geelong-based Costa Asset Management, has amassed a $600 million development pipeline in the year-and-a-half since it was founded.
Apart from its first high-profile development of a Manly apartment block in Sydney's Bower Street, Mr Fox has operated under the radar since ending a two-decade association with rich lister Paul Little that spanned Toll Holdings and the development company Little Projects.
CostaFox's six luxury apartments in Manly set a record $33,500 square-metre price for the area after one with sweeping ocean views sold for $9.5 million last year.
The apartment block was now under construction.
Larger owner-occupier apartments in prime locations were now coming into their own, Mr Fox said.
That focus was the result of wariness about the effect of government, banking and tax measures to cool Australia's overheated apartment sector.
"We've had a big boom in apartments. That's now coming off," he said. As well, industrial values were "climbing reasonably quickly".
The group has sought planning approval for 177 smaller warehouses, offices, a childcare centre, shops and cafe at its $100 million Indwe Street development in West Footscray.
It purchased the site, opposite a residential street, for $10.3 million, employing architects Rothelowman to design industrial units that "look like townhouses".
The project was not without controversy.
"It was only recently rezoned to future employment land but residents want it changed to residential zoning – which would suit us – but I don't think the Council or department of planning support that," he said.
Plans were underway for another 9.7-hectare site in Cooper Street, Epping which it snapped up for $9.5 million.
The group has also swooped on a corner block at 111 Lorimer Street in Fisherman's Bend, a location immediately behind Mirvac's low-rise Yarra's Edge development.
Under planning guidelines the site will take a 40-level tower. The group paid less than the $20 million asking price for the 4108-square-metre block.
CostaFox plans to put 400 apartments and 3000 square metres of commercial space on the site when the market is ready.
"We are gathering momentum," Mr Fox says.
The information on this website is given for general information purposes only. It should not be relied upon as a substitute for legal, financial, real estate or other expert advice and must not be relied upon as a basis for any decision concerning any featured property. Users must make their own enquiries to verify the information before acting on it, including material on property particulars. Some of the images contained on this website are indicative only. Users must not rely upon these images for any reason. The information on this website is subject to change at any time without notice and to the extent permitted by law, is provided “as is” without representation or warranty of any kind as to the accuracy, completeness or suitability for a particular purpose.
Users of this site acknowledge and agree that any personal information provided may be used by a third party for marketing purposes. We do not collect personally identifiable information about you, except when you provide it to us. The information you provide may be used by us to create and deliver to you our newsletters or surveys, or other communications. If you provide us with your email or IM address or mobile phone number we may provide you with these communications electronically. We may sell or transfer such personal information to our affiliates, licensees and partners. We will use the information you provide to us only in accordance with Privacy Laws and we shall retain the information you provide to us until it is no longer relevant to our business or you request that we delete the information. We may share your personally identifiable information with our “Affiliates” that distribute and market CostaFox properties. An “Affiliate” is a person or entity that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, our company. An affiliate may operate outside Australia.