Seeking joint venture - D.A. approved, 3 x Townhouse dev, Brisbane

G

grubar30

Hi All,

Does anyone have recommendations for a builder interested in a joint venture for a small townhouse development in inner-north, Brisbane?

The property is 612m2, 60% GFA and D.A. approved for 3 upmarket townhouses (3 bedrooms, 1 study, 2.5 bathrooms, 3 levels, 2 dual LUG).

The block is perched high in a well-positioned street (i.e. city views), has an existing house - old QLD'er - and is close to retail and transport hubs (hence the 60% GFA).

The address is 93 Bage St, Nundah 4012.

I have had the property since Nov 2007 and the D.A. was approved in May 2008.

The property details can be found on the Brisbane city council website :
http://pdonline.brisbane.qld.gov.au...enquirer/default.aspx?page=wrapper&key=367837


The plan was to always develop myself, but things change in life, and the best way forward now is to joint venture with someone and share the costs and profits.

I have done extensive research on the on-sale market value of the finished product and the figures stack up very well. I can provide this information to interested parties. Of course, this is no substitute for doing your own research.


Cheers
George
[email protected]
 
Hi George,

Can you tell us what type of JV you are looking for?
What they would need to fund for the deal, what their share would be etc.

Is the plan to build and sell or build and hold or own one each and sell one...etc...

If you focus on what is in it for the investor then you would be more likely to get a resonse for what you are looking for.

X
 
Hey X,

I would take care of the holding costs and the builder would foot the build costs...that includes things such as the B.A., Council Infrastructure costs, and all relevant construction costs. I don't have an answer for GST at the moment.

Pro's for the builder

What's in it for the builder is that the hard yards have been done with the D.A.

The holding costs are worked out at 8.29% on a $500K fixed, interest-loan, which comes to ~ $810 p/w.

The builder has the chance to leverage both a D.A. approved property in a premium position with an owner who is coping the holding costs. I think that takes a lot of risk out of it for the builder.


JV Structure

In terms of joint venture structure, I've never done one before, so that is something I am currently looking into - maybe some Somersoft JV experts can help me out here please.

I'd ideally like to build and sell, as I would like to shift my capital to another investment. But nothing is set in stone.

In essence, I'm am very open to all suggestions; I just want the best result for both parties.

I have talked to one or two builders and they seem to work off a margin of 20% Gross on a development, but that's if they own the development outright. The devil will be in the detail of the contract, but at a high level I see it as a pro-rata situation - what you put in, you take away as a percentage of the profits.


My costs so far

$545K purchase price
$18k Stamp Duty
$8k LMI + Bank fees + solicitor fees
$20k D.A. costs (council fees, Town Planner, Architect, Engineer, Land Surveyor, Landscape Architect)


That's $591k all up. This does not include the $40K holding costs for the last 12 months (rent helped reduce it to ~26K).


Why I am doing this?

I need to make a move on this property, as another year or two of holding costs really doesn't tickle my fancy. I would love to see my development come to fruition, even if it means coming out with less expectations (i.e. profit).

I'm not in a position to finance a contract build and do it all myself. To much leverage and too much debt, which I'm not comfortable with in this market.

I know this can be a good deal for someone. They just need to come to the table, show their hand and together we can develop something sweet with good transparency and a fair go for all.

That's the bottom line.

:)

Regards
George
 
Development project - Nundah

My husband and I have recently bought a property in Nundah, I am beginning to research the process to gain DA and BA - and am hoping somone may have some great advise to share...

Where to start ??
Who to speak to ??
 
Town Planner

Hi,

To mawsonks I am a qualified town planner working for a consultant town planning firm in milton. We deal with a range of development applications if you would like some advice I would be more than happy to offer.

I am also undertaking a development in Sherwood with my father to build 3 town houses. Although i got a bargain with a site that already had DA approval.

My advice would be to read...a lot and as my boss told me when i first became a planner...ask as many questions as you need even if they are stupid.

Tom
 
mawsonks said:
My husband and I have recently bought a property in Nundah, I am beginning to research the process to gain DA and BA - and am hoping somone may have some great advise to share...

Where to start ??
Who to speak to ??
Click to expand...

It is important that you do a lot of market research on what is selling in the area and why. Then you simply replicate what has worked for someone else. Do not get emotionally involved in creating a grand masterpiece or get caught up with architects that start steering you towards expensive construction methods or design.

After you have done your research then you need to put together a detailed feasibility analysis to determine if the figures stack up.
 
You must log in or register to reply here.

Similar threads

G
Contract builders in Brisbane - seeking HELP
Replies
8
Views
1K
grubar30
G
Back
Top