Developer releases avalanche of ski properties for weekend auction
Developer and publisher Morry Schwartz is selling all 77 of his Falls Creek apartments within the Huski, Silverski and St Falls complexes this weekend.
It is the biggest single auction of alpine property the country has seen.
It’s been billed as a no-reserve auction, although technically the bidding starts at $10,000and initial bidding will proceed in $10,000 bids from there, until otherwise decided by the auctioneer.
The offerings range from bunk studios that typically sell for $85,000 to a three-apartment-in-one-line virtual lodge.
They are offered through Ray White Commercial in conjunction with RT Edgar Alpine.
But some of the most expensive offerings in the St Falls East and St Falls West block also come with strict bidding requirements.
Any bidder for the 40 of the luxury apartments that are in the managed pool within the drive in-drive-out St Falls complex must prove that they have annual $250,000 income or $2.5 million in net assets given they are being offered under an unregistered management investment scheme operated pursuant to Australian Securities and Investment Commission instrument 11-0572.
The letter to prospective purchasers also says participation in the St Falls management scheme could be limited to people who have paid more than $500,000 for their unit, although Schwartz has indicated that sales will proceed possibly at less than this given there is no reserve.
There are 13 units that are not within the management pool and therefore don’t need to match any regulatory requirement.
The properties, developed by Zacamoco, a joint venture founded in 2004 between Schwartz’s Pan Urban and Schwartz's son-in-law architect, Callum Fraser of Elenberg Fraser architects, will be sold individually via the Helmsman Auction method, more commonly used for livestock.
St Falls was one of three Saints’ properties underway in the Victorian Alpine region, but St Buller in Mount Buller and St Hotham in Mount Hotham never got further than the drawing board.
The apartments and three retail spaces are set for Sunday August 28 auction.
"It's not a fire sale," Schwartz recently told The Australian.
"It's a proper and pure no-reserve auction. With these sorts of auctions, if you get enough people in the room, you'll get a market price.
"That doesn't mean that some people won't get a bargain."
“Playing a key role in the development of Falls Creek as one of the country’s leading snow destinations has been a rewarding experience,” says Schwartz, who is perhaps not as welcome now on the mountain given his decision floods the market with an estimated three years’ worth of listings.
“I’m immensely proud of the three projects we have created with Zacamoco, which have elevated Australia’s alpine accommodation and facilities to be on a par with the finest ski resorts anywhere in the world,” Schwartz says.
“Now however, my focus is on the boutique property markets in Melbourne and potentially Sydney. So, even though Falls Creek is enjoying the best snow season in years, it’s time for me to move on.”
“We would expect keen interest in any property developed jointly by Pan Urban and Elenberg Fraser,” says Mark Williams from Ray White Commercial, who will be overseeing the auction. He says the interest has been enormous.
HUSKI
Huski was Zacamoco's first Falls Creek project, which turned a rundown apartment block into the recipient of Wallpaper magazine's 2006 best ski resort in the world award. There are 14 apartments in the $25 million project, with its design inspired by the geometry of a snowflake. The upcoming offering is three studios apartments, one three-bedroom apartment and a retail premises
Schwartz's offerings include lot number 102, a studio of 33 square metres, has had a recent annual $34,000 gross rental, with outgoings of $25,000 leaving a net income of $8,349.19. Studio 104 had a $7500 after net income of $26,000 gross outgoings and a gross income of $33,000. Studio 202 had a $6300 net income after outgoings of $23,000 and $30,000 gross income. Huski 2A has recently reported $18,000 annual gross income and outgoings of $38,000.
There are other listings by other vendors at the moment. They include the three-bedroom, two bathroom 201 Huski apartment has been recently listed through RT Edgar at $649,000. RT Edgar recently sold a one-bedroom 203 Huski unit under mortgagee instructions. Huski 301 is listed at $575,000, having grossed over $75,000 in 2009 holiday bookings. The unit 301 was a sub-penthouse with two bedrooms, two bathrooms with an extra third mezzanine-style bedroom. A Huski studio apartment has a $190,000 asking price through RT Edgar. It configures two to four people with a split queen bed and a fold-out sofa bed and was approximately 33 square metres.
Huski 304, which is two-bedrooms, two-bathrooms is for sale at $620,000. There’s a $649,000 asking price on Huski 205, which features a master bedroom with ensuite, plus a double bedroom, and a bunk room that sleeps four that is listed through Falls Creek Real Estate Bright agent Ted Weeks. There are retail premises available for sale. Pursuant to clause 3.2 of the Management Agreement, the purchasers can reserve the apartment for their own use either for specific weeks, or for an extended period.
SILVERSKI
The $10 million refurbishment at Silverski, a 38-room boutique hotel featuring five penthouse apartments, includes the award-winning Japanese restaurant Oshii. There are 28 apartments listed by Schwartz in Silveski, with 20 studios and three one-bedrooms, two two-bedrooms and three three-bedroom apartments.
Other vendors' listings include Silverski 207, a bunkbed studio unit, is listed through RT Edgar at $92,500. Silverski 208 is for sale at $100,000. Silverski 209 is listed at $85,000.
ST FALLS
There will be eight one-bedroom, 19 two- bedroom and 14 three-bedroom apartments offered for sale in St Falls, the $65 million 63-apartment project now managed by Mirvac Hotels and Resorts under its five-star Quay West brand. But to bid for St Falls apartments prospective purchasers must meet pre-qualification requirements under the managed investment scheme guidelines.
It took its architectural inspiration from the Bogong Moth of local Dreamtime legend. It is Australia’s only drive-in, drive-out, ski-in, ski-out, five-star alpine resort and spa. It partially opened in June 2009 and completely by the 2010 snow season. A three-bedroom, two-bathroom apartment E504 has been recently for sale at $577,000 through RT Edgar Alpine. Unit 502, a two-bedroom, two-bathroom unit has been listed at $610,000 by a private vendor. Unit St Falls 407, which is three-bedroom two-bathroom apartment in the east wing, has a $695,000 asking price, also through a private vendor. The three-bedroom, two-bathroom apartments range in size from 90 square metres to 113 square metres, all with balconies from nine square metres to 23 square metres with views down the valley. Its two-bedroom, two-bathroom apartments range in size from 75 square metres to 92 square metres all with balconies from 15 square metres to 88 square metres. The one-bedroom apartments are typically 56 square metres with a 14-square-metre balcony.
St Falls fronts the Bogong High Plains Road on one side and the foot of the Falls Express quad chairlift and Wombat's Ramble ski run on the other. With features including a Turkish-style hammam, lead architect Callum Fraser visited 60 alpine resorts from Aspen and Whistler in North America to the Swiss and Austrian Alps to study what made them so attractive. The luxury apartments available for sale in the St Falls West building were released in March 2007 when limited apartments remained available for sale in the St Falls East building. The 2007 sales agents were Rob Moore and Ted Weekes and Christa Zirknitzer at RT Edgar Alpine.
NAARILLA
There are three two-bedroom, one-bathroom apartments are available for sale in the five-apartment complex of Naarilla. Originally the Naarilla building was used as accommodation for the Snowy Mountain Scheme before the building was relocated to Slalom Street in Falls Creek. These three apartments are being sold in one line. The total outgoings for all three was $33,844.
“We would expect keen interest in any property developed jointly by Pan Urban and Elenberg Fraser,” says Mark Williams from Ray White Commercial, who will be overseeing the auction.
“The nature of the Helmsman Auction allows bids to be submitted for multiple properties simultaneously and also opens up the possibility for investors to purchase multiple adjoining apartments or the entire portfolio if desired,” Williams suggests.
The auction takes place at 11am on in the Promenade Room at Crown Casino in Melbourne. There will be a 60-day settlement period for all properties sold.
