Project Description

11 Lots at Peverell Street, Hillcrest

Status: Civil Construction Completed, Plan in council for approval

Timeline: From 5/2015 to 12/2015

Duration: 6 Months (Estimated)

Project Owners: Members via QLCL Member Development Fund – Peverell Street Trust

Total Project Value at Completion: Land: $2.5M (Gross). Land with houses & auxiliary units: $6M (Estimated).

Project ROI: 29.8% per annum Distribution/$100,000 – $14,750 (Estimated)

Finance Summary:

Land: $875,000

Development Cost: $1.29M

Loan Limit: $1.3M

House/Auxiliary Packages: $505-529K

Rental Appraisal: $670-700/week

Owner’s Member Benefit: $27,500

 Project Description:

Acquisition, Civil construction, registration and sale of 11 x 450- 800 lots suitable for construction of house and auxiliary unit residences.

Challenges and Solutions:

Time to Market – Minimal as land had DA and Operational Works Approval. Construction Cost Risk Fixed Price Civil Contract with tight deadlines. Sales Risk – QLDG Option on all lots not purchased by Project Owners.

Lessons Learned & Investor Comments:

Good Civil Contractor and team eliminates most problems. Worth paying a higher interest rate to simplify loan conditions ie no QS.