50% Equity funder required to complete funding of a new Mixed Use development with Total Project costs of $49,000,000 by the investment of AUD $8,000,000.
This project which is located within 6 km of the Brisbane (Australia ) CBD and located within 600 metres of the entrance to major tunnels connecting this site with the Brisbane CBD and the Domestic and International Airports built by the Queensland Government. This project will be constructed by Hutchinson Builders - a Tier 1 builder from Australia. The Project will be managed by Global Management Group who have extensive experience managing several major Institutional Projects. This project encompasses the development of 32 x 1 brm ; 80 x 2 brm and 8 x 3 brm apartments over 4 levels above 2,000 M2 of retail shops incorporating a 1,200 M2 IGA supermarket, medical centre, Pharmacy, coffee shop, restaurants and specialty shops on the ground level. Pool, Gymnasium, BBQ areas and Organic gardens, worm farm, composting facilities with fruit trees to be provided on the podium level above the retail shops.
Brisbane is currently demonstrating stronger presale contract uptake than has been recorded for 15 years. The projected net development profit of AUD $15,000,000 is supported by a Fixed Price D&C Construction price from Hutchinson Builders and Gross Realization projections by Colliers International and Empire Property Investors Australia.
This project will commence construction in March 2015 after presales amounting to $40,000,000 have been completed by Colliers Residential Projects.
The project development team are successful and experienced professionals with strong track records who are excellent communicators.
This project is located close to the CBD with all modern facilities available onsite. To ensure our competitive edge these apartments have been priced between $330,000 and $550,000 which is the median selling price of apartments this year in Brisbane.
The design of each apartment has been carefully considered to provide maximum efficiency and a pleasurable living environment. The selling prices for these apartments and Strata Titled retail shops required to be achieved, to sustain the project development profit has been assessed by Colliers International Residential Projects and Empire Property Investors Australia and these are very competitive prices that are attractive to the local Owner Occuppiers and investors. This year 2014, there are several projects coming onstream south of the Brisbane River but minimal new projects coming onstream north of the river where this site is located. Last year a project with 156 apartments was completed by Hutchinson builders 100 metres from this site and all apartments in that project have been sold off the plan. This subject project will now incorporate a 1,200 M2 IGA supermarket, medical centre, Pharmacy, coffee shop, restaurants, specialty shops and carparking on the ground level.
This site is located in an area surrounded by trendy upmarket suburbs and its proximity to the city CBD and excellent local address, modest price range and thoughtful design ensures a strong market response to this offering in this current robust presales market. Economic conditions in Australia generally and Brisbane in particular are very supportive for this project's success as confirmed by recent market assessments by Place Projects and Herron Tod White valuers.
With a strong development team and strong builder supported by Westpac Bank this project is only lacking further initial capital to succeed.
The AUD$8,000,000 Equity funding required for this project will be utilized for the settlement of this site and further marketing costs and presales contract commissions to project marketers for this project in order to secure presale contracts that will trigger full construction and development funding from Westpac Bank.
The investor will have the benefit of the work already carried out securing this development opportunity and holding it while the Development Approval was prepared, lodged and negotiated with the Brisbane City Council. Significant marketing collateral has already been prepared and negotiations with several marketing teams completed.
The excellent consultant team, marketing team and builder supporting myself as the developer, ensures that this project will achieve its full potential with the revenues to be generated.
The investor will have the option of regular participation with management decisions or to relax and receive weekly reports to ensure that this project continues on course.
The conservative projected return on an investment of $7,800,000 plus agreed coupon interest rate on the equity invested for a 2 year investment of $8,000,000 in this project provides a sound and secure return on investment.