Garden Terraces in NewmarketMr Parker said buyers wanted a combination of space and luxury and getting the balance right through architecture and design was the key to the success of the project at Eve on Erneton.“Newmarket as a suburb has evolved rapidly over the last 10 years and developed its own unique feel and style,” he said. “Residents love the idea of being only a few kilometres from the city but also having their local gathering places like Newmarket Village and an abundance of parks.” Garden Terraces in Newmarket is just 500m down the road from Eve on Erneton, both are being developed by Your Style Group as the first major residential developments in Newmarket in four years.THE second development in Newmarket in four years has recently been launched to market on the back of the success of Eve on Erneton.Your Style Group managing director Dean Parker said Eve on Erneton had shown that Newmarket represented better value for money at almost the same distance from the CBD as nearby popular suburbs Windsor and Wilston. Garden Terraces in NewmarketMore from newsMould, age, not enough to stop 17 bidders fighting for this homeless than 1 hour agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investorless than 1 hour agoMr Parker said making sure the developments were sympathetic to the surrounding environment was important to achieving approval, and ultimately in driving demand.“The Newmarket market is a little bit different to the inner city market,” he said. “Buyers aren’t interested in living in a high-rise and prefer lower density product than the inner city and city projects currently on offer. “We deliberately went with a range of larger two and three bedroom apartments to cater for this market.” Garden Terraces in NewmarketGarden Terraces has a central open air atrium with shared walkways, greenery and communal areas designed to foster wellbeing and social exchange.All apartments have been designed to maximise cross-ventilation, with the gardens giving private and semi-private subtropical garden spaces and the balconies being deep and shaded for the best in outdoor living.The apartments themselves use a natural pallete of materials and finishes and each has allocated parking.Garden Terraces is within walking distance to some of Brisbane’s best parks and bikeways, serviced by rail and high frequency bus services and is only 500m from Newmarket Shopping Centre with a Coles supermarket, specialty stores, cafes and restaurants. Garden Terraces in Newmarket Garden Terraces has just launched 500m down the road from Eve on Erneton, with 26 one, two and three-bedroom residences designed to mimic that of a typical Queenslander through the filtering of light, breeze and privacy through multiple layered skins.Mr Parker said Newmarket had always been a desirable suburb for buyers because of its proximity to the city and relative affordability, compared to suburbs like Wilston and Windsor. “Development sites in the area have always been scarce and approvals difficult to achieve,” he said.
By Tuleva’s reckoning, the management company, once established, will be sustainable once 3,000 members join and transfer their existing second pillar savings.The mandatory second pillar currently has close to 685,870 member and €2.7bn of assets.As of 23 August the association was half way past its target, with €1.53m of capital collected since the end of April, and a membership of 1,700 acquired entirely by social media and word-of-mouth.Members pay an up-front fee of €100 and pledge to bring in their second-pillar savings.The first 3,000 members can also make an additional voluntary contribution of between €1,000 and €10,000 to the start-up capital, fully returnable if the fund management company is not established by the end of next July, in return for a higher profit share.According to Pekk, a former chief executive of GA Fund Management who has also worked for PwC and the European Bank for Reconstruction and Development, 0.05% of the Tuleva’s AUM will be distributed among the members according to the size of their pension account in Tuleva funds, while the rest of the profit – both from the business as well as investment income of the start-up capital – will be distributed among all members according to their contribution to start-up capital.In addition to the novel ownership structure, Tuleva intends to charge lower management fees, a contentious issue in the Estonian pensions market. According to Pekk, management fees currently average 1.26%, while the total expenses ratio is some 1.5-2%.Tuleva will initially charge a management fee of 0.5%, reducing this when the membership increases.It intends to achieve the lower costs through a fully passive investment strategy – 75% invested in the MSCI All Country World Index and 25% in the Barclay Capital Global Aggregate Index – using mostly BlackRock as its provider.Pekk told IPE that Tuleva hopes to have the necessary documentation ready by September and the finances in place by the end of October, with the pension fund launching next year pending regulatory approval.Estonia’s finance ministry, meanwhile, which itself called for greater competition and fee transparency, is incorporating two of Tuleva’s proposals into forthcoming amendments to financial legislation.The current exit fee for pension fund members switching providers is to fall from 1% of assets to 0.1%, while the minimum share capital will be cut to €1m.Tuleva is not alone in turning to passive investment to cut fees.This week LHV announced that it plans to launch two new passive index funds – a second-pillar fund 75% invested in equities, and a third pillar one fully invested in equities – each of which will charge a management fee of 0.39%.LHV plans to receive the regulatory go-ahead for its new offerings later this year. Estonia’s shrinking pension fund landscape may soon have a new player, operating on a profit-sharing cooperative model.Tuleva, started up by 22 prominent Estonian financial and business individuals, has been established as a commercial organisation, a collective of members with similar interests, with each member holding one vote, in contrast to the four existing bank-owned market players.“The market for the second pillar fund system is uncompetitive, and returns since its launch in 2002 have been poor,” Tuleva board member Tõnu Pekk told IPE.The association is building up capital to set up a second-pillar pension fund management company, which under current Estonian law needs a minimum capital of €3m, as well as funds to finance costs such as regulatory, legal and depositary expenses.