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

Development report for proposed mixed use development at Dyldam Developments in Sydney's Macarther region. Includes project details, planning constraints, financial analysis, and risk analysis.

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
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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
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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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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
Source: google.com/au
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
BACKGROUND TO THE SUBURB&PROJECT BEING DEVELOPED
COUNCIL AREA
As per the assignment, here chosen area is Camden Council, which is known as a area under
the local government that is located in the Macarthur region of the country Sydney that is
situated on the state of New South Wales, in the country of Australia(Setiawan et al., 2018).
As per government report, the area is situated in the south-west portion of the Sydney central
business district. in addition to this, there is near about 201 sq km area is under this council
where the estimated total population is near about 78,218 as per 2016 census report. Cr. Peter
Sidgreaves is regarded as the mayor of Camden who is considered as the Liberal Party's
member.
Suburbs in the local government area:
According to suburbed service with the help of Camden Council, there are following areas,
which are listed below:
Bickley Vale
Camden
Camden South
Catherine Field
Cobbitty
Currans Hill
Elderslie
Ellis Lane
Gledswood Hills
Grasmere
Harrington Park
Kirkham
Leppington
Mount Annan
Narellan
Narellan Vale
Oran Park
Smeaton Grange
Spring Farm
Gregory Hills
Demographics:
As per the official report in the year of 2016, the population of Camden Council area is
80,476. According to the report of 2016, there are 26% of people that are located in the
Camden Council area who have visited an institution education that is located in that
area(Myers, 2018). There are 49.0 per cent were male while 51.0 per cents were female out of
78,218 people living in the area of the Camden local government which is counted as per
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
census report in the year of 2016. there are only 2.5 % of total population that is made up of
Aboriginal and Torres Strait Islander people while in case of the NSW and Australian
averages are slightly below to that of proportion whereas it is described as from 2.9 and 2.8
per cent respectively.
As per the report of 2001 census as well as 2006 census the population growth rate was
developed through 13.35 per cent while after next 5 years there was near about 14.25 per cent
population growth was observed as per the report of 2011 census(Ghani et al., 2018). On the
other hand, according to the report of 20146 censuses, the population was accelerared by 37.9
percent in contrast to the entire population growth of Australia. Therefore, it can be said that
at that period 8.8 per cent population growth is noticed in the Camden local government area,
which is considered as four times the national average.
According to 2016 report, there is ancestry as Australian or Anglo-Saxon approached are
found among the 70% of all residents in the Camden local government area.
LOCAL NEIGHBOURHOOD AND STREET
There are 1,690 residential buildings that got the approval to be built as per the financial year
of 2017-18 In Camden Council area. Camden Council shows a region that experienced a
rapid growth through being an important part of South-Western Sydney that is expected to
house a large portion that is related to the population growth of Sydney during the upcoming
decades(Fastenrath and Braun, 2018). There is a development application, which is located in
the Camden area for Muslim group, which is based on the Quranic Society that is A$19
million Muslim schools with the capacity for 1,200 students. To reject the application there is
required for Council voted unanimously as per the report of May in the year of 2008.
Local Neighbourhood and Street
There are 2 local as well as neighbourhood streets are available to Cameron council which
are as follows:
Camley Street
Another one is Drummond Street.
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
PLAN FOR THE GROWTH OF SYDNEY- THE PROPOSED SITE -
IMPLICATIONS
As per the NSW department of planning and environment, there is a plan for growing
Sydney, which is done in the year of 2014 that is continued for the year 2031(Perles-Ribes et
al., 2018). Through this plan, there is provided with a framework that is related to the future
growth of the city where there is many visions are set for the development of the city. As per
the plan it is demonstrated to high light the importance which are supported the economic
growth of the city through that it is recognised as a driver of Greater Sydney as well as
productivity of NSW. In addition to this with the help of this plan, there is continuous growth
of Greater Parramatta that is related to second CBD of Greater Sydney so the corridor from
Greater Parramatta is developed for specific growth and investment to the Olympic
Peninsula. Therefore, focus is made on jobs as well as service that is helpful for outer
suburban communities(Kaspar et al., 2018). Besides this as per this plan, there is also
identified as an independent entity, which it relates to the Greater Sydney Commission for
coordination as well as its implementation.
Review as well as findings of the plan:
The key findings of the plan are considered as the plan is supported by legislation, which is
related to the establishment of the Commission along with the legislation for strategic
planning of the growth for the city(Skrede and Berg, 2018). As per the review of the plan, it
has a great role in the financial sector of the Sydney community where it is important to the
productivity as well as services of NSW and Australia. In addition to this, there is also a large
supply of office spaces as well as it will support the global economic competitiveness of
Sydney by maintaining proper global economic corridor. Additionally, significant
investments are done through cultural belt of Sydney where the city can attack various
tourism as well as skilled workers for their productivity(Kauko, 2018). Through this plan,
there is protection that is done due to natural assets of the Sydney Harbour, where it can
include scenic and cultural landscapes along with its significant consideration.
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
MARKET & PRODUCT ANALYSIS TARGET
Demonstrate market analysis and product mix appropriate to the site.
The market supply of the site is low. However, over the years, the market supply has developed. The
market demand on the other hand is high. The product mix for this particular product is its nature of
product, the price, the place of location and its promotions.
Demonstrate market analysis and product mix appropriate to the site.
The main purpose of the market analysis is considered to the utilization of proposed
development of that particular website which is permitted by various legislation that is related
to the site. As per the market analysis, it is included financial as well as market feasibility that
is related to the specific uses along with the conclusion of highest as well as best uses of the
site along with the assumption that is compared to a proforma section of the analysis.
According to 2011 report, there are not enough changes than other retail markets which is
faced by Sydney where the vacancy rate went from 4.9 to 4.3% while positive net absorption
is considered as at 389,275(Walker et al., 2018). As per the report, there is decline nature in
rental rate from the third quarter of 2011. However, there is near about 1.3 million SF of new
retail was developed in that particular area in Sydney at the end of the year. Compare to
another retail market area of another Australian country, Retail sales activity of Sydney area
is increased by 15,000 SF or larger. Compare to 2010 cap rates, in the year of 2011 the cap
rates were lower that is consider as good symptom in case of retail markets. As per the
following diagram, it is discussed the ranks of markets which it relates to the greatest amount
of retail which is currently under construction (refer to appendix 1).
As per the report, Sydney is considered top 10 multi-housing markets in Australia, which is
counted as at micro level(Mbaku, 2018). In the year of 2010, there are low vacancy rates as
well as favourable supply/demand along with steady rent growth that has a great effect on the
top marketing ratings of this particular site. Additionally, due to favourable economic
condition residents of that, a particular site is acted as renters by choice because there is the
high cost of homes, as well as the population, is considered as the transient nature. As per the
third quarter of the year 2015, the ownership rate of homes is fell to 65 % while there is a
favourable rate of rental properties that are growing day by day. As a result of the apartment
market which is proceeding from "recovery" to "expansion" that is liable in the market
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
cycle(Fernandes et al., 2018). There is observed multifamily market, which is helpful for the
attraction of investors as well as buyers due to the economic bubble in that area.
The particular site plays a major role regarding positive force in the apartment market that is
grown as a submarket of the particular area. As per the report, there are vacancies that are
continued to slip under 10% but the rents gain momentum at that period since it is shown
growth. As per the report in the year of 2011 where according to REIS average the cap rates
have been low by 4.2 %. Therefore, to raising the population as well as strong unemployment
rates along with their income and inventory growth to a younger population is considered as
an attribute for Favorable rental conditions which known as the corridor(Wenner, 2018). As
per the following table, it is shown the favourable corridor construction as well as absorption
along with vacancy rates.
Product mix
Product mix Description
Product Mixed use property
Price Price inclusive of cost, building expenses and
service tax
Place Sydney
Promotion Through online and TV advertisement
PROPOSED DEVELOPMENT CONCEPT
BLOCK PLAN
As per the definition of the block plan, it is considered as the plan or mapping that is done by
using a suitable metric scale through which there is described the detail of
developments(Kauko, 2018). As per the block plan, there is a clear view of, a map that shows
an entire development site which is outlined in red in colour that must be licenced.
Here with the help of the following diagram, there is shown a developmental block plan of
that particular area of Sydney.
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
Floor plan:
As per the floor plan, it is described as a landscape architectural plan that is covered by
detailed engineering drawing that is related to proposed improvements, which are given in the
pan. With the help of this plan, it is used to describe the footprints related to developed
buildings, drainage facilities, sanitary sewer lines, travel-ways, parking, trails, lighting, water
lines, and landscaping and garden elements.
As per the following tables, there is usually described the floor plan that is related to the
development of the chosen particular area.
SGSM Sustainable Property Development - Dr Kamel Taoum
13

SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
PRODUCT MIX
Your Proposed Market Mix:
Number of Apartments 10 10 10 10 10 50
Average Price
$
400
$
600
$
900
$
1,200
$
1,500
$
920.00
Average Gross Floor Area
(m2) 75 100 150 250 400
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
TOWN PLANNING SITE CONTROLS AND CONSTRAINTS
Planning Control Required Proposed The justification for
Exceeding Required
controls
SEPPs $77,853.00 $250,00000 Due to better development
LEP
components of the DCP
relevant to your site are
below
Which one?
*zoning mixed development
*heights 15 storied 10 storied Due to more dwellers
*FSR 3:8 3:5 For better space
Setbacks
Other
 Heritage
 Contaminated Land
 Views and Vistas
 Streetscape
 Amenity
Contaminated land
Natural view
Gym
Pool
Streetscape
Heritage
Gym
Streetscape
Better facility to the
residents
SUMMARY OF CONSTRAINTS
The development plan will be accepted since the plan maintain all the rules and regulations of
development. The cost as well as of this particular plan of development are very much
convenient, therefore, it can provide a proper output. 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.
SGSM Sustainable Property Development - Dr Kamel Taoum
15

SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
FINANCIAL ANALYSIS
FEASIBILITY ANALYSIS
Revenue
Residential 1 bed 2 bed 3 bed 4 bed
Penthou
se Totals
Number of
Apartments 10 10 10 10 10 50
Average Price
($ 000)
$
400
$
600
$
900
$
1,200
$
1,500
$
920.00
Gross
Revenue
($000)
$
4,000
$
6,000
$
9,000
$
12,000
$
15,000
$
46,000
Saleable floor
area 7800
Gross Rev per
sales area
$
5,897.44
Shops/
Offices Shop Office Totals
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
No of units 5 5 10
Average Price
($ 000)
$
500
$
500
Gross
Revenue
($000)
$
2,500
$
2,500
$
5,000
Total Gross
Revenue $0 Fee % GFA
Rate/
m2
GFA
$
51,000
$
51,000,00
0
Development Costs
Professional
Fees 8%
$
3,825,000
Authority
Fees Application Fees
$
10
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
S96
Contributi
ons No apts 50
$
5,000
$
250,000
Rates/Taxes
$
10
Other
$
10
Construction
Costs
Residentia
l 9750
$
2,000
$
19,500,00
0
Offices/Shops 1000
$
1,200
$
1,200,000
Carparks 3800
$
1,200
$
4,560,000
Landscapi
ng
Area: Land- Build
Footprint 2000
$
400
$
800,000
Miscellaneou
s 20%
$
5,212,000
Land Acquisition Cost
$
1
Total Development Cost 14550 $ $
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
2,429
35,347,03
1
Interest* 8.00% Y1 Y2 Y3 Y3
Progress 15% 25% 25% 35% 100%
Cash
Flow
$
5,302,05
5
$
8,836,75
8
$
8,836,758
$
12,371,
461
Interest
$
1,696,65
7
$
2,120,82
2
$
1,413,881
$
989,717
$
6,221,077
Total Development Cost including
interest
$
41,568,10
8
Development Profit
$
9,431,892
Profit Percentage on Development Cost 25%
Site Acquisition Costs:
SGSM Sustainable Property Development - Dr Kamel Taoum
19

SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
As per the requirement, there needs the market value of the land in order to determine the
cost of the site acquisition(Tóth et al., 2018). There are 2 approaches that are related to
market value that include land value appraisal which provides by assessment report that is
related to real estate. In addition to another approach is consider to comparable sales of lands.
There are following factors that are related to the formulas of determining the land values of
the particular site, which is as follows:
1. Cost approaches that are related to the replacement of property that is similar to current
material as well as labour costs.
2. Income Approach which is related to the income that is produced through that particular
property if it is rented as a house, as well as apartments along with factory etc.
3. Sales Comparison Approach is considered as the price of those properties that are sold
recently.
As per the report of Jan 2012 the total and appraisal worth is considered as $13,721,700
where the cost that is related to the per sq ft development area is $83.92, as well as the cost
per unit, is $93,984.24 where there is at 146 dwelling units(Smith, 2019).
There is the second step, which it relates to the analysis of the sales that compare to the
market value of recent sales according to its appraisal values.
Hard Costs:
As per the report, there is consider of construction cost for the building which is estimated
near about $ 800000 per sq ft. Stick build which is required as structural requirements that are
less expensive as well as it requires fire/safety guidelines along with life-cycle costs(Smith,
2019). In the case of stick build, Buildings above four levels required a hybrid structural
system for which there is a cost of $3.00 to $5.00 more per square foot. It is also advisable
that there needs cheaper cost for the development of the building if it is promoted as a typical
square or rectangle shape compare to the "L" shape.
SGSM Sustainable Property Development - Dr Kamel Taoum
20

SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
Soft Costs:
Through this type of cost, it covers construction expenses, which include typical "bricks and
mortar" line items(Storbjörk et al., 2018). As per this cost, there is an association of the cost
that is related to legal, marketing, insurance, engineering, permits and fees, architectural fees,
utility connection fees, organizational overhead, taxes, closing costs and environmental.
SGSM Sustainable Property Development - Dr Kamel Taoum
21

SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
PARTICIPATION STRUCTURE
Equity Funds
(Seed capital)
$ Mezzanine
Funds
$ Parent Debt $
Team Funds
from ASS 1
$250,000 Pyramid X
Funds
$250,00 Pyramid X
Bank
$280,00
FFF funds $250,0000 Independent
Mezz funder
$850,000
Syndicate Funds $750,000
(No. of people in
syndicate: x)
50
Amount per
syndicate
unitholder ($)
$5600
Totals
Grand Total
Funds
$1122554400
Sources and Uses of Funds:
Funds required: Funding Source $ Amount
Stage 1: Land Acquisition (use the residual land
value amount)
Seed Capital $250,00
Stage 2: DA (assume $350,000) Seed Capital $250,000
Stage 3: Pre-sales/ Pre-commitments (assume
$750,000)
Seed Capital $500,000
Stage 4: Construction (insert the balance of the
development cost)
Parent Debt $350,000
Total: $1125000
RISK ANALYSIS
Scenarios and Risk Analysis
All sold 90% Sold 80% Sold
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
100% 90% 80%
Gross Revenue
No.
Apartments 50 45 40
Offices/Shops 10 9 8
$ Revenue ($000)
Apartments
$
46,000,00
0
$
41,400,000
$
36,800,000
Offices/Shops
$
5,000,000
$
4,500,000
$
4,000,000
Total Gross Revenue
$
51,000,00
0
$
45,900,000
$
40,800,000
Development Costs
Consultants
$
3,825,000
$
3,825,000
$
3,825,000
Authority
$
250,030
$
250,030
$
250,030
Construction
$
26,060,00
0
$
26,060,000
$
26,060,000
SGSM Sustainable Property Development - Dr Kamel Taoum
23

SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
Miscellaneous
$
5,212,000
$
5,212,000
$
5,212,000
Land
$
1
$
1
$
1
Total Development Costs
$
35,347,03
1
$
35,347,031
$
35,347,031
Interest Cost
$
6,221,077
$
6,221,077
$
6,221,077
Total Development Costs incl
interest
$
41,568,10
8
$
41,568,108
$
41,568,108
Profit
$
9,431,892
$
4,331,892
-$
768,108
Profit % 23% 10% -2%
Break Even
As per the assignment, there is some risk as well as challenges to complete this structural
development, which is as follows:
1. Timing: it is considered a major challenge for the development team due to entitlement
delays, design and construction modifications poor weather, and contractor delays/errors.
2. Market Risks: although the favourability of the market is available for the development
though it is affected due to the financial crisis, which is done in the year of, 2008 that is
happen globally(Xia et al., 2018). There is a direct impact of this event on the real estate
market in Sydney.
Construction Cost Risk: this includes the cost of transporting of brick, cement as well as
steel and other materials that are used normally in the construction of the building.
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
To conclude, as per the assignment there is a mixed-use buildingfeaturing an apartment that
is suitable for dwelling units. Based on this case report, it can be said that for the success of
the project there is required of market demand/supply, hard and soft costs, financial markets,
as well as county/local support. Therefore, there is some recommendation that is required to
develop the project successfully:
1. It is important to incorporate longer term vision
2. It is mandatory to continue safeguard and improve the global competitiveness of Sydney.
3. Mandatory to follow policies, Government plans, and initiatives.
Always use an updated framework to promote transport, infrastructure, along with land use
planning.
SGSM Sustainable Property Development - Dr Kamel Taoum
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
APPENDIX
1. Retail market analysis
2. Apparent market analysis
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SGSM Sustainable Property Development- Assgt.2- Development Report Group Name:
Muhammad Aamir
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