About | Purple Sand

ABOUT US

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FROM THE GROUND UP

Purple Sand is a family owned development and construction company, with a combined experience of over 40 years in the commercial and residential building industry.

We aim to build homes the way our parents did, solid, secure and with a soul. Homes that will stand the test of time.

We manage each and every detail from the concrete footings to the light fittings and everything in between, to maximise the comfort and quality of living in a Purple Sand property.

Our collaboration with Architects, Designers, Engineers, Trades and Craftspeople who are as passionate as we are, results in each of our projects being planned, designed and built with the utmost care and precision.

Everyday, we’re driven by the passion to create homes that our own families would live in... and they do!

OUR APPROACH

Over the last 20 years we have had a financial approach to developing apartments. Whilst creating beautiful homes is critical, making sure the projects “stack up” is vital. Each project is analyzed using our team of Architects, planners and Urban designers and builder prior to purchase to ensure they meet our strict financial development guidelines.

Once purchased we go through the process of obtaining permits and creating the building that provides the amenities and living environment for our tenants but also creates value for our investors and community. By using our many years of experience, we co-ordinate our Engineers and designers to produce the absolute best product that not only fits our financial criteria but is also a sustainable building that will stand the test of time and beauty.

Applying capital with a gradual approach to ensure maximum ROI for investors is high on our list of objectives…whilst ensuring maximum capital growth.

Once our projects are complete we integrate management and maintenance of the buildings whilst ensuring maximum returns (rental).

Having an Estate Agent experience helps in bringing together our research technology, and ensuring our Zoning, Council, Planner and valuation information gives us the best chance to be ahead of the curve and maximise NLA in our projects. Where possible we may add a commercial element to not only diversify the rental, but also bring some lifestyle qualities to the building.

OUR TEAM

DAVID BESSER

David has been building and developing quality projects for over 35 years, starting with value adding to properties and then moving on to developing from scratch. His design background gives him the foresight to see what is possible creatively while his financial background ensures he “makes the numbers work”.

“You make your money when you buy” has been a catchphrase that David has lived by in all his property purchases. Having purchased over 40 properties he is constantly learning and using those learnings to fine tune his skills. The purchase price is very important, but the key is mitigating risk. Whether it is analysing easements, speaking to Town Planners, a coffee with the neighbor or working out if a tree is going to cost 2 apartments - there are so many permutations and combinations. Analysis is critically important but gut feel adds that little bit extra margin or avoids a major problem.

Having diversified experience in retail, office, warehouse and residential development gives David a wealth of experience. His knowledge across the sectors is useful in analysing opportunities with residential being his main passion and focus. Whether it was renovating, sub-dividing or flipping, David understands that mistakes are made when you fail to adequately analyse the property prior to purchase but, adding value will almost always fix those mistakes.

David has a Diploma in Property and an Estate Agents License (Victoria), which helps him understand both sides’ perspectives. This has significantly aided his acquisition knowledge, a key plank in ensuring development projects are profitable.

Over the last 20 years David has built a team of consultants who have helped him work through the challenges of property development from purchase to permit to completed multi-unit apartment blocks.

David’s developments have a unique soul and brand that can be seen in the delivery. This “X factor” creates additional value to the end result and is something David is especially proud of.

The past has molded many of his traits. Being a second generation developer, David recalls his time on building sites with his father, laying out food on a Friday afternoon for the crew on his sites and making sure they were all safe and well. This early experience moulded the style David has with his teams today.

Passion and Soul create the brand that shows in his finished developments and this is what drives David in everything he focuses on.

ALEX LAUBER

Alex is an experienced corporate and compliance lawyer with more than 20 years experience in financial markets, corporate transactions and long term debt. His legal training was gained in top tier law firms in Melbourne and London, followed by a career in medium and large corporations in financial services, mining and energy.

Alex has many years’ experience in negotiating contracts with supplier, engineers and consultants. He is a commercially minded lawyer who is passionate about efficiency, quality delivery to clients and investors, and understands that dedicated work over the long term brings results.

Through years of work in financial services and compliance, Alex has experience in AFS licensing, compliance systems and dispute resolution. This experience in dealing with regulators in a commercially minded way, builds constructive relationships and delivers efficient results.

ABE TOMAS

Abe is a Fellow of the Institute of Chartered Accountants and has over 30 years' experience in financial services in Australia and globally. He was a member of the start-up team of LeasePlan in Australia, serving as their Managing Director for 5 years and growing it to market leadership in Australia, before his appointment as a Member of the Managing Board and Chief Financial Officer of the parent entity based in The Netherlands, LeasePlan Corporation NV, where he was responsible for their global debt funding need of in excess of $18 billion across 30 countries. Abe served in that capacity for 3 years prior to returning to Australia in late 2008. The LeasePlan group with over 5,000 employees, is the world's largest vehicle leasing and fleet management organisation, spanning 30 countries across Europe, North, South and Central America and Australasia.

For the nine years and ending in July 2018, Abe held the role of Managing Director Fleet and Financial Services of ASX listed McMillan Shakespeare Limited, where he successfully established and led the Asset Management business segment in Australia, NZ and the UK.

Abe has extensive risk and compliance experience, has chaired credit committees of LeasePlan Corporation NV and McMillan Shakespeare globally and has extensive experience in debt and equity management with respect to asset portfolios.

RENATO SPINOSA

From 12 years old working part-time for his Father on weekends as a labourer, Renato has always had an interest in building and design. One of Renato’s first weekend jobs was working at a Concrete Panel yard as well as a Part time labourer stripping and cleaning panels ready for Mondays delivering to sites. This on the ground experience gave Renato the basics with which to build to the next stage of his career.

Renato’s interest grew further into construction and he started working with a concrete construction company at 18. As a labourer, he started working in concreting and formwork, and, as the years went on, he developed a strong interest in the full suite of building and construction not just the concreting.

Seeing a site start from dirt and then finished as a completed building is what excited him. This led to applying for a Building/construction diploma so that he could combine all his practical experience with the theory he needed to obtain his building license. Renato studied nights and weekends whilst working during the week and after 3 years, obtained his domestic builders license and was able to start small building projects himself.

Over time Renato became fascinated with larger commercial projects that were much more complex and led him to apply for his commercial license which he successfully obtained. Having these licenses has given Renato the flexibility to do everything from renovations, large scale factories, multi-unit apartment blocks with basement whilst always using his on the ground knowledge and the basics of “building it right the first time”. This has stuck with him through all his array of projects which would exceed 100.

Experience, passion and attention to detail whilst not forgetting cost sums up Renato best.

THE PURPLE SAND JOURNEY

In 2013 - I had a vision...

.... to build a substantial number of apartments with the express purpose of renting to tenants.

Early in the century Australians have grown up with the view that life is best when you own your own home. In fact, it has always been deep in the Australian psyche, and drummed into children when they were young - to own not rent because “renting is a waste of money” and “don’t make the landlord rich”.

We lived in large homes on large tracks of land. This is all we knew. We would live in one home and through life, struggle to pay it off. No matter what stage of life we were at, we would make the home we lived in work with whatever our personal circumstances were. One job, One home and One of everything was how life worked and was expected by family and society.

The “One” generation has changed! Multiple of everything... jobs and careers, places of residence, partners, children, health and family. The changes happen and they happen quickly; so flexibility is the key.

Having one home for all the iterations of life is no longer possible and conversely, changing homes, all through life, for many is impossible. In fact, saving for a deposit and getting a loan eludes most. The alternative? “renting”, a word many don’t even think or dream of. One-year rentals from estate agents that, in many cases. don’t provide service or care. The insecurity of short-term rentals makes many feel like the bottom of the barrel. Most unjust! I have been there, as many have.

The alternative is “The Purple Sand community” where you can rent long term in multiple buildings, depending on your stage of life. In boutique buildings that have all the services there for you. Our buildings are homes, not high rise “build to rent “buildings that don’t feel like home but feel and appear more like a hotel.

In 2020 - It became a reality ...

... It has taken till 2020, to find the right team to put this dream together – Imaginative design, proven building quality, timely delivery and execution, corporate governance giving clients (tenants) a flexible quality of life with security and our investors both a financial and emotional return on their investment.

I give you Purple Sand “Healthy Life Through Healthy Buildings”.

BUILD FOR RENT

The Purple Sand approach to Build to Rent is a unique one....

Standard Model

Typically 150 apartments + in a single location
10 storey buildings and towers
Short - medium term rentals
Flexibility to move during lease
Contract builders with >30% margins
Returns based on add on use of concierge services and and amenities at a price
No incentive to reduce tenant cost of living
Fixed overhead structures

Purple Sand Model

15 - 50 boutique across multiple locations
3 to 6 storey buildings
Medium - long term rentals
Flexibility to move during lease
The Builder is the Developer
Returns based on recurring rentals
Minimise cost of living for tenants
Low variable cost structure
Rent Roll owned by Fund

DEVELOPMENT PRINCIPLES

For every single site purchased the Purple Sand team will have assessed and run feasibilities on at least fifty others, meticulously and methodically identifying suitable sites near transport, shops and other pertinent lifestyle amenities including parks, hospitals and schools.

The most important work undertaken is the work that goes into buying a site. Purple Sand prides itself on buying the right site at the most appropriate price for the planned development. All sites are extensively researched, analysed and are feasibility prepared. If the site is the ‘right’ site and it is purchased well, strong financial outcomes are more likely. Once a feasibility has been completed and approved the team starts on the best acquisition terms and conditions. Our purchase terms may not always appeal at first to vendors, so negotiations can be lengthy.

Prior to the site identification Purple Sand will have consulted with planners, architects, surveyors and other relevant experts, consuming many days of work. Most of the feasibilities are dropped through the process and few make it out the other end.

Once purchased, then the real work starts internally to determine the best way forward and the best proposal that maximises returns to investors. In addition, we need to consider the spread of the types of homes, to provide the “Purple Sand community” the best option and provide tenants the best variety for them to make decisions on taking on long term leases with us.

Combinations of 1,2,3 and 4 bedroom apartments need to be on offer and this diversifies the risk for investors as well as provides clients (tenants) with multiple options within our apartment base.

Our focus will continue to be Victoria and where possible within the Metro area. This is where our knowledge and base of consultants are and where we have deep understanding of the “lay of the land”. We believe our focus gives us a strong advantage, whilst mitigating risk by working with what we know and where we know.

Our team follows strong disciplines but never deviates from the main lesson of life for the property investor ... “you make your money when you buy”!

CORPORATE GOVERNANCE

GOVERNANCE & COMPLIANCE MANAGEMENT

Governance of the Purple Sand Development Trust

Governance of the Trust is overseen by the Trustee, which will hold investment assets on trust for investors, including property, funds invested, rental income and capital earnt by the trust. In accordance with financial services licensing regulations, investors funds and assets will always be held separately from operations accounts.

The Trustee supervises the operations of the Investment Manager including receiving and reviewing proposals to fund the investment operations of the Trust. The Review Committee of the Trust, which is staffed by Responsible Managers of the Trustee, is tasked with the responsibility to review and question or approve the proposals submitted by the Investment Manager.

Reporting and Regulatory Supervision

The Investment Manager report regularly to the Trustee on the progress and performance toward the targets of the Trust. This reporting is in addition to the transparency the Trustee has in the operations of the Trust.

The Trustee submits to annual audit by the Auditor, Grant Thornton, which has audited CTS since 2012. The Auditor must sign an audit report to the regulator, ASIC, on an annual basis. Together these processes and measures bring scrutiny and transparency to the operations of the Trust and support the detailed and conservative approach to the work that we do.