FOX TEAMS WITH COSTA TO TACKLE SYDNEY'S TOP END
18 March 2016, Written by Karen Rickert
FORMER Little Projects managing director Michael Fox (pictured) has teamed up with one of the Costa brothers to pursue a new property venture.
Fox and Costa Asset Management (CAM) head Robert Costa launched development firm CostaFox in Melbourne last month, after meeting through mutual friends.
CAM is the investment division of agribusiness Costa Group, co-owned with brothers Frank and Anthony, which was floated on the ASX last July.
Fox delivered 2000 apartments over six years at Little Projects, which he founded with former Toll Holdings boss Paul Little before resigning last year.
"We had a great time and created some pretty special properties and projects," Fox says.
"At the end of the day, it was time for me to move on and find somebody fresh to work with and came across Robert. To date, it's been outstanding."
CostaFox has hit the ground running after acquiring a number of development opportunities, including a trophy waterfront site at Manly in Sydney.
The firm picked up the property on Bower Street for $13.1 million at a liquidator's auction, down from its previous sale price of $16.3 million last year.
With experience delivering high-end projects in Melbourne, Fox says it was the perfect opportunity to tackle a new market.
"Following success in the luxury residential market in Melbourne, we have identified an opportunity to create something special in Sydney," he says.
"The site had two failed developers before us, so the owners are looking for someone who has the experience and is capable of delivering.
"It's our first foray into Sydney, but if the enquiries are anything to go by it should be a very successful project."
The 1189sqm site has plans and permits for a four-level luxury residential building comprising six apartments, which are expected to fetch up to $8 million each.
Award-winning architect Koichi Takada has been enlisted to design the development.
Fox says the project will appeal to wealthy empty-nesters looking to downsize their multimillion-dollar homes, with the 'cookie cutter' market of traditional one and two-bedroom apartments failing to satisfy buyers.
"We are actively seeking development opportunities in all markets with a focus on luxury residential and industrial," he says.
CostaFox is also in the planning phase for a mixed-use residential site in Port Melbourne featuring 70 units.