Development opportunities -July 2019

Melbourne

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Already secured, 1230 sqm. site situated in NE Melbourne. Approximately 30 minutes by car and public transport to the CBD. 


Purchase Price: $1,725,000.00 

Cash required to secure 100% of equity: $172,600.00


Permit to build already granted

1-4 Months to obtain working drawings, tender pack, Builders contract signed ready for settlement

Settlement in 4 months

Balance of funds required at settlement for land purchase and construction finance; $662,040.00



Time Frame: 15 Months from the exchange to completed product to sell to the market.

Targeted End Value: $4,750,000.00

Targeted ROE: 81% (~$844,000)

Targeted Profit Margin: 19%

Call Ben today

Regional NSW

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NSW Regional City – Repositioning a Commercial Building

Purchase Price ~$5.5m (currently property under option)

Capital Required: ~$4m equity (for 100% ownership… can be either one investor of syndicated). 

Refurbishment spend ~$3m (either by additional capital or less due to tenant fit out)

Proposal

Six-story building under option, and currently B grade office space in a major regional NSW city in the CBD precinct.

The play is to refurbish the building into higher end rentable space, with a twist that will take advantage of the unique business demographic and local university.

Optionality exists in the long term to take advantage of significant FSR and height capabilities.

Tenancy risk mitigated with 50% of refurbed letting space having letters of intent signed.


Time frame: Targeted <12 month turnaround 

Numbers

Projected end value: ~$11m

Projected Net Rental: 8.3%-8.8% 

Projected ROE: ~47.5%

Call Ben today

Sydney

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SW Sydney – Townhouse Development

Purchase Price: ~$4,300,000 (not secured – off-market)

Land Size: ~5000sqm

Proposal: Two street frontages with 3 amalgamated sites that can become 28 x 3 bedroom townhouses.

Flattish block in an exceptional location, close to transport, employment hub with the local demographic seeing this product in high demand.

Precedence is well established. R3 Zoning currently exists on the land.


Numbers

Capital Investment: $1,100,000 (on $4,300,000 purchase price, includes stamp, legals and DA costs)

Expected Equity multiple uplift post DA:~1.6-1.7x (12 month time frame)

Possible exit post DA, however if taking to construction and completion, there is the likelihood the valuation uplift on the land post DA, may cover the equity required for construction.

Construction Costs: $7,100,000 (Additional equity portion at 30% would be additional $2,130,000)

Expected end sale value $18,200,000 (24 month time frame)

Targeted Profit $3,200,000.00

Targeted Profit Margin: 25%

Targeted ROE: 72%

Call ben today

Disclaimer

Please take into account your own personal circumstances and that of your client before recommending any of these possible opportunities. Past performance is no guarantee of future performance. Targeted Profit, Profit margins and ROE number stated are estimations and not guaranteed. The investors risk profile should be taken into account before making any investment based decisions. 

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LGen Property

5 Martin Place, Sydney, New South Wales 2000, Australia

Ben Weeding Investment Property Strategy mobile: + 61 428 559 308 email: Ben@LGen.email