Development Report for Proposed Mixed Use Development at Dyldam Developments - SGSM Sustainable Property Development Assignment 2

SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
SGSM 201013: SustainableProperty Development Assignment 2:
Development Reportto CEO for Proposed Mixed Use Development
For Proposed Site: Dyldam Developments
For:Dyldam Developments Pty Ltd
Board of Directors:CEO Dr Kamel Taoum
By:Project Development Team of Dyldam group
Date:15th March 2019
Dyldam developments, Sydney
Brief Project Description:
Dyldam Developments is another big developer in Australia and was ranked as the second
largest property developer by HIA in 2017 with 3,605 starts. It’s now ranked as the largest
apartment developer in the country. Almost all of the latest constructions are medium and
high-rise apartments in and around Sydney. In addition to residential apartments, they also
develop commercial, retail and mixed-use developments. Dyldam Development has
published advertisement for selling a site. The detail information is about Camden Council.
The site is situated in Macarther region in Sydney. The site is offered for sale to open market.
Notice has been published regarding vacant possession. This means that the property has
already been sold or lease is granted. Delivery of the vacant possession will be following
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
standard procedures. The seller will deliver the property to the buyer on completion. The
property has already been handed over to the property owner at lease expiry. Different types
of facilities are available for sale, such as permanent, semi-permanent or temporary
buildings, plants and structure. Commercial facilities are offered for sale in Camden
Council. Detailed physical structure and layout of the facilities Camden Council are
available, so that delivery of the property can be efficient and authentic. Associate lease is
also available for replacement of cars, and other vehicles. Through associate lease, the
associates will be able to lease replacement of their vehicles to the property owner.
Therefore, the owner will be able to provide the vehicle through a pre tax agreement.
The site includes mixed development, including 20 apartment, two shops, and a cafeteria with
underground car parks. This mixed-use development site consists of buildings for industrial
or commercial use, or for various cultural or residential purposes. In addition, gas stations,
important offices, restaurants, parking lots etc are available around the site. Total area of the
site is 51,902 Square Feet, and according to the valuation of 2011, $13,500,000 was the
purchasing price of the site. Present gross revenue of the property is $55100, and
development cost is $6246. Within 24 months, profit margins will be $41522, equivalent to
23% profit. Both multifamily and single housing facilities are available near the site.
Macarther region is located in the south-west region of Sydney’s central business district.
This increases the importance and valuation of the site.
_____________________________________________________________________
TABLE OF CONTENTS
Project Details Summary.........................................................................................................3
EXECUTIVE SUMMARY............................................................................................................. 4
Summary of Recommendation.............................................................................................4
Planning Constraints............................................................................................................ 5
Benchmark Project Concept:................................................................................................5
Background to the Suburb & Project being developed.............................................................7
Council Area........................................................................................................................ 7
Local Neighbourhood and Street..........................................................................................8
Plan for the Growth of Sydney- The proposed Site - IMplications.......................................9
Market & Product Analysis Target.........................................................................................10
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
Proposed Development Concept............................................................................................11
Block Plan.......................................................................................................................... 11
Product Mix........................................................................................................................13
Town Planning Site Controls and Constraints........................................................................14
SUMMARY OF CONSTRAINTS.............................................................................................14
Financial Analysis..................................................................................................................15
Feasibility Analysis............................................................................................................15
Participation Structure.......................................................................................................21
Risk Analysis..................................................................................................................... 22
Reference............................................................................................................................... 25
Appendix................................................................................................................................ 27
PROJECT DETAILS SUMMARY
Project Details and Performance Statistics
General Details
Site Name: Dyldam Developments
Site Address: 71 Terry Rd, Box Hill NSW 2765, Australia
Local Council: Northern Beaches Council, Burwood Council.
Land Owner: No
Agent Mr. Muhammad Aamir
Sales web site https://www.dyldam.com.au/
Existing buildings and dwellings on
the site:
Small storeyed existing buildings
Existing active leases leases on any buildings on the site which expires on
January 2019
Project Statistics
Proposed development 20 apartment, 2 shop and a cafeteria with underground
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
parking
Gross Revenue $55100
Development Cost $6246
Development Profit $41522
Profit % 23%
Programme 24 months
Planning Constraints
Zoning Mixed development
Required FSR 3:8
Proposed FSR 3:5
Required Height Limit 3.5m for 20 floors each
Proposed Height Limit 20 floors
Reasons for exceeding the planning
controls
The plan is realistic and designed in an effective manner
to meet up all the necessary requirements
Proposed Land Acquisition Price $13,721,700
EXECUTIVE SUMMARY
Provide recommendation to the Board of Directors
The key objective of this concept, which relates to sustainability that allows our next generation
through that it, can measure the benefit of present property development whereas at that same time
there is no disadvantage because of the current development. Hence, the property development project
is a considerable one. The land acquisition price will be $265300, where the cost will be $624
and the profit will be $41522. Risk is an inseparable part of land acquisition process. Dyldam
Development willing to sale Camden Council site, located in Macarther region in Sydney.
Price of the property, including profit margin will inculcate to help Dyldam Development
assessing marginal price of the site and amount and rate of profit that can be gained from the
sale. There are 20 apartments in the property, including 2 shops and a cafeteria, and an
underground parking lot. Proposed land acquisition price of the land is $13,721,700. Gross
revenue for Dyldam Development is $55100. The company invested $6245, which will bring
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
$41522 development profit for the company. Key objective of the study is to analyse about
different key issues of building development and property acquisition. The study revolves
around the process of operations and productions building development. Infrastructure and
maintenance of building, disposal of old and weak buildings are essential issues regarding
the subject that needs to be discussed critically. In addition, there are several disadvantages
and risks of land acquisition, such as failure in achieving expected benefits. Another risk
factor of land acquisition process is improper information about the land. Sometimes, unclear
land title leads into confusion, and several legal obstacles. Even any changes in the existing
governmental policies regarding land acquisition in Australia, such as long-term lease from
government or landowner are matter of discussion. Moreover, there are ample chances of
failure of the negotiation agreement, or conflicts among the shareholders that can increase
complexities.
SUMMARY OF RECOMMENDATION
At present day, there is the importance of rapid growth of a new idea, which is known as
sustainability that has proper awareness regarding in many disciplines where it is spread
widely. However, there is very poor definition where this concept is described while there are
certain features through this it differs from the concept of conservation.So many
environmental elements, which involve building development such as operation, production,
infrastructure, maintenance along with buildings disposal, land management, as well as
project management are related to the capital those are made by human beings. Hence, it is
ensured that the concept of sustainability is being adopted for the development process
through that the interaction, which is done in between development, and environment that is
regarded as synergised in position. Through environmental problems, sustainable
development issues have become arises; as a result, there is pollution as well as damage to
the earth. In this particular project, the land acquisition price will be $265300, where the cost
will be $624 and the profit will be $41522. As already have been discussed, Macarther
region is located in the south-west region of Sydney’s central business district. State of New
South Wales of Australia is a core business region of the country. Approximately 201 sq km
area under the council is estimated to have more than 78,000 people, as per the census report
of 2016.
Summary Performance Indicators
No. of apartments 20
Product Mix Product line, packaging, brand
development
Gross Revenue $55100
Development Cost $6246
Development Profit $41522
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
Profit % (on development cost) 23%
Programme (months) 24 months
PLANNING CONSTRAINTS
The standard of living that is promoted in case of developed world through the globalization
as well as industrialization from bare maintenance to prosperity whereas the majority of the
population in the developing country is subjected to destitution. There must be considered as
3 pillars during sustainability development regarding the property that is known as social as
well as economical along with environmental. As per theory, sustainable development of the
property is re3fered to in terms of pattern or designs that relate to structural changes in both
cases of natural as well as capital stock that are made by humankind, which includes the
human capital as well as technological capabilities. With the help of this, it is ensured that
there is a minimum requirement of the growth rate as desired by the society for the purpose
of the long run that is feasible in nature. In addition to this with the help of this features as
well as concepts, there is in many emerging countries where all project development needs to
take accountability regarding sustainable features such as choice of materials along with the
modelling that are related to elevations.
BENCHMARK PROJECT CONCEPT:
As per the report, the property is considered as the critical issue that is related to sustainable
development due to its large share that is related to its resources as well as consumption of
energy. In addition to this, the system maintenance influences the sustainability, product
manufacturing, and assembly, building structure, material extraction, and replacement along
with waste disposal. Additionally, there is considered a large number of negative impact due
to these activities that are helped in real estate project developments in the environment. With
the help of buildings, there are contribution of up to 50 percent of raw materials, 16 percent
of water usage, 50 percent of CO2 emissions, 40 percent of solid landfill waste, 16 percent of
water usage, and 71 percent of electricity consumption.
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