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)
Development Cost: $1.29M
Loan Limit: $1.3M
House/Auxiliary Packages: $505-529K
Rental Appraisal: $670-700/week
Owner’s Member Benefit: $27,500
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.