PORT MACQUARIE DEVELOPMENT
- Update #1
- Update #2
- UPDATE #3
- UPDATE #4
MARCH 2018 | VIDEO UPDATE
- 26th March 2018 -
Unit Certificates distributed to investors today. This is their proof of ownership in the project.
- 23th March 2018 -
Unit Trust Deed variation has been finalised to include the following variation: "
(3) Change the first sentence of clause 13 to the following: “The trustee(s) can issue additional units or different classes of units at any time. The classes of units can have such special rights, privileges or limitations as the trustee(s) determines (see Schedule 4).”
- 20th March 2018 -
Unit Trust Variation to Deed executed. Preference Units can now be issued. Certificates to follow....
- 19th March 2018 -
Unit Trust Deed still stuck with lawyers. The issue revolves around preserving future land tax exemptions. This does not affect the investors but more the developers future profits (potentially). So some legal wrangling being undertaken to arrive at the optimum solution whilst also acknowledging the importance of issuing the unit certificates soon as indicated by email below from Robert.
- 6th March 2018 -
The unit trust deed needs to be changed to insert a provision enabling issue of your Preference Units and a clause that grants Pref Units be paid prior to ordinary units (the developer). The Developer is liaising with the project Accountant to see if it's easier to substitute the entire deed with a new deed that allows for preference units.
MESSAGE FROM PROJECT MANAGER: ROBERT SCOTT
4th May 2018
"All in all, I am very happy with the progress"
My consultants and I met with Council’s ecologist in Port Macquarie on 13th April and secured a successful outcome for the vegetation issues to the north east.
The extra on-site vegetation assessment work, requested by Council, is complete and the report due to be presented to Council in a few weeks.
We knew from the beginning the main issue to discuss with Council would be the vegetation which occupies a small percentage of the site. We were being optimistic in trying to obtain extra building envelopes to the north east in the vegetated area which is an endangered ecological community. I have agreed to remove 4 Lots (so we now have 36 Lots) and Council has agreed to allow a reduced vegetation buffer zone across the rear of all Lots to the north.
Council is in the process of putting the amended plan back on public exhibition for comment.
Due to Council allowing a reduced vegetation buffer zone, I am now in the process of amending our bushfire report and submitting to the Rural Fire Service (RFS) for comment. The idea is for the fire trail road to be incorporated together with the buffer zone, thereby significantly reducing fire trail road construction cost and maintaining existing Lot yield.
We have received the engineering comments from Council last week. Essentially the comments are not onerous, but are lengthy and some of the requests we feel are very detailed and should be addressed at the CC (construction certificate) approval stage. My consultants have a meeting with Council next Thursday 10th May for a general discussion.
We do not yet know if we need to do a Koala Plan of Management. If we do, it will be a very small report as our potential Koala habitat area is minimal.
I am very confident I will obtain an approval for 36 Lots. Its just a process of time working with Council to address the relevant issues. All in all, I am very happy with the progress.
The next update I will comment on;
- Koala Habitat Plan of Management
- Public exhibition comments
- END OF UPDATE -
Welcome to update #3. It's a short and sweet update as things are tracking along similarly to update #2. That said, there are a couple of key points since the previous updates..
Engineering - My consultants met with Council’s engineering department on 10th May to discuss their request for detailed engineering reports on stormwater road grades etc which are typically reserved for the construction certificate phase. It seems Council has recently adopted this approach for all development applications. We expect to have these reports completed by 13th June. All it means is there will be less work and expense when we apply for our construction certificate.
RFS - Report completed and submitted to RFS (Rural Fire Service)
Council has not yet publicly advertised our amended application due to finalisation of plan subject to engineering reports.
I have received no advice yet that we require a Koala Habit Plan of Management. The longer it goes the less chance of a KHPM being required.
I’m happy with our direction to date.
By Michael Fuller
I've been keeping an eye on the Port Macquarie market as I'm obviously keen to ensure the final development approval is met with a favourable valuation on the site. This in turn will help with funding for the extraction of the equity to repay investors.
There is no doubt in my mind the market there continues to remain solid when markets like Sydney and Melbourne are sliding. Anecdotally, and what I've read in the press, Port Mac is being fuelled largely by those seeking an affordable sea-change away from the capital cities.
As far as value goes it's hard to beat at the moment and, I imagine, will continue to do so over the next few years if the BoomScore data is anything to go by.
I must commend Robert for his work so far. I have worked with numerous developers over the years as some of my older clients in this project know. He certainly keeps a cool head and ensures his team are driving things forward with council while also keeping them very much on side through strong collaboration.
At this stage all seems on track. Keep it up Rob.
Text message from Rob
Further to your question about how we are tracking to the original timelines, my consultant has come back to me saying they expect the DA approval at the end of August (I think this is tight, I'd say more like Sept) and NO Koala Habit Plan required - woo hoo!
27th July 2018
Good morning Mike,
My consultant team have now completed and lodged with Council the engineering and stormwater detail.
You may recall from my last update that this particular Council was requiring an extra level in engineering work for all new DA applications, almost to that of construction certificate detail. This level of engineering detail has served us well because we were able to design the stormwater capacity to suit the yield for our future integrated development application.
In the context of this project, council have indicated they would be happy to support a proposal which includes townhouses at the base of the site. The townhouses would be Torrens Titled as opposed to strata titled. The roads would be owned by the collective residents.
- Michael F -
At present my focus is on the shorter approval time route for the standard subdivision plan which will create certainty and value for our investors, I expect this application to be approved around September/October ‘18.
Soon I will be preparing an ‘integrated’ development application (a little longer time frame and post investor participation) to overlay the standard subdivision plan. This will increase our yield up to approximately 48 plus Lots by having smaller Lots with different rules applying such as internal roads will become part of the body corporate, a bit like a townhouse site.
To cater for the future increase in yield, our we required a little more space for stormwater and our current yield is now 35 Lots (was 36).
The amended plan is currently on exhibition re-notification from 24th July to 6th August, then we await Council and RFS (Rural Fire Service) responses.
I have also received correspondence that we do NOT need to complete a Koala Habitat Plan of Management.
I think we’ve now completed the bulk of the work and have amended plans to satisfy Council and neighbouring comments.
Hotspotcentral raised the capital to fund the cost of council approvals and other costs for a 40 lot land subdivision in one of the last infill development sites in the highly prized area known as 'Transit Hill' in Port Macquarie, NSW.
According to the town planner assisting with this matter:
"This site is considered to be amongst the best, if not the best site still available for residential development in Port Macquarie." - Graham Burns, Land Dynamics (town-planner, established in Port Macquarie for over forty years) Source
The site is zoned accordingly for detached housing with a minimum yield of 40 lots expected based on pre-lodgement discussions recently.
On offer is a 30% fixed dividend (net return) paid out of the equity released post DA approval (expected) May 2018.
MINIMUM FUND RAISING
MAXIMUM FUND RAISING
TIME TO COMPLETION
8 months (estimated)
FIXED DIVIDEND RETURN
TYPE OF INVESTMENT
PROJECT SUMMARY & EXIST SCENARIOS
Please note: the information below is superseded by the official information memorandum subsequently
PART 1 - DISCUSS SITE PLAN AND OFFER WITH ROB SCOTT (DEVELOPER) AND MICHAEL FULLER
Located in the sought-after pocket called Transit Hill in Port Macquarie with the site being the last in-fill development land subdivision in central Port Macquarie.
Homes sell for more than $1,000,000 in the "Transit Hill" area.
According to Domain.com.au, Port Macquarie is one of the fastest growing areas in NSW. No longer just attracting retirees, families are flocking here for the great schools and friendly communities.
Across Australia, it is the fourth most searched for town on domain.com.au.Demand is not just from home-buyers but those looking for a great investment. Most price ranges are selling fast and occasionally sight-unseen. It’s certainly a seller’s market.
The DA approvals are expected in May 2018 at which point the developer will either on sell the site or refinance the equity out to repay the investors their capital of $750,000 plus 30% fixed dividend.
The amount borrowed depends on the valuation of the approved site and the LVR offered. This video explores the options and the assumptions.
PART 2 - SITE PLAN POST COUNCIL PRE-LODGEMENT MEETING