Advisory Services: Case Studies
MIXED USE DEVELOPMENT INNER CITY APARTMENT BUILDING LAND SUBDIVISION – BRISBANE SMALL UNIT DEVELOPMENT ASTON APARTMENTS – MIX USE DEVELOPMENT TOWNHOUSE DEVELOPMENT
Project 1 – Mixed Use Development
The new developer of this site purchased the property with an existing Development Approval issued by the Planning and Environment Court. The previous owner had owned the site for approximately 6 years, during which time they obtained a Development Approval, which involved an appeal to the Planning and Environment Court. In addition to this, they had also commenced Building Approval documentation, project branding, marketing and sales. However, as the previous developer was inexperienced in this scale of development, they were unable to get the project successfully funded and commenced. This led to the site being sold to the new owner, who immediately engaged McAndrew Property Group during the acquisition to assist in reviewing the project and repositioning to the market.
McAndrew Property Group worked in partnership with the new owner to carry a complete review of the project, including design, unit mix, unit sizing, gross revenue assumptions, construction costs, marketing strategy, product positioning and sales strategy. This led to a new architectural design being prepared and approved which was in keeping with the local marketing and prevailing market conditions.
This revised strategy led to the project being launched to the market and achieving the required pre sales to commence construction within just 3 months. This was a remarkable turnaround from the previous owner and demonstrated a successful project review by the project team.
Key facts
- Gross revenue increased by ~$1m
- Construction Costs decreased by ~$0.5m
- Improved architectural aesthetic and amenity
- Market repositioning and new brand identity
- Pre Sales achieved and construction commenced within 3 months of launch
- Sales rate of 3x any competing project on the market at the time
- Retail, Wholesale and International sales channels
- Offsite Sales Display office and Display unit
Contact
Project 2 – Inner City Apartment Building
This Inner City Apartment Building was an existing project that had been stalled by the previous owner prior to commencement. McAndrew Property Group was engaged during Due Diligence, with the new owner to assist in reviewing the existing project, assisting with due diligence and identifying opportunities to improve the project before the owner proceeded with the acquisition. Following the successful due diligence period, McAndrew Property Group identified numerous opportunities to improve the project which included a revised design, increased yield and the introduction of a major unique selling proposition with a market-leading roof terrace amenity, taking advantage of the amazing city and river views.
The revised strategy was achieved with a minor amendment to the existing development approval. This ensured a fast turnaround for the proposed amendments and resulted in the project getting to market within 4 months of settlement. This strategy ensured a clear distinction in the marketplace between the previous attempt to commence the site and the repositioned project.
Key facts
- Gross revenue increased by ~$1.5m
- Construction Costs decreased by ~$1m whilst increasing yield and adding a rooftop terrace with swimming pool
- Improved architectural aesthetic and amenity
- Market repositioning and new brand identity
- Pre Sales commenced within 4 months of settlement including a revised DA
- Retail, Wholesale and International sales channels
- On site Sales Display office
Contact
Project 3 – Land Subdivision – Brisbane
McAndrew Property Group was engaged to market a residential land estate in the northern suburbs of Brisbane after another agent previously launched it to the market earlier. After being on the market for approximately 6 months, only 3 sales had been achieved to date. Upon engagement, McAndrew Property Group quickly set about a review of the project including product, lot mix, market positioning and revenue assumptions in conjunction with the developer. Following this process a revised marketing and resourcing strategy was implement, identifying new target markets and working closely with our established builder relationships. This resulted in 2 builder display homes being built in Stage 1 which were sold by McAndrew Property Group on a lease back basis for 2 years, enabling the developer and builders to “sell off” the display homes into the project. Further to this, House and Land packages were promoted through a variety of Brisbane’s leading builders which further promoted the project. Within 3 months, McAndrew Property Group had sold out Stage 1 prior to title registration whilst achieving increased gross revenue.
The sell out success of Stage 1 led to the early release of Stage 2, something which just 3 months earlier was not even a consideration. Again, McAndrew Property Group was able to sell out this Stage prior to title registration ensuring settlements were achieved and revenue realised as early as possible for the developer.
Due to the sales success of the first 2 stages, the developer was then able to combine the final 2 stages of the project into a single stage. This final stage comprised many sloping lots with some having fall of up to 9m as well as vegetation covenants restricting buildable areas and setbacks, in contrast to the first 2 stages which consisted predominately of level lots. McAndrew Property Group set about engaging local architects and specialist builders to develop individual house and land packages, at a variety of price points, to suit the more difficult lots. This also included working with the developer to implement necessary earthworks and retaining wall solutions during construction, reducing costs without decreasing prices for the developer. These packages were then able to be tailored with individual clients on a case by case basis to deliver a considered and cost effective solution to the client. This strategy was a success, with the final stage of the project sold out by title registration and the overall project completed ahead of schedule with increased revenue.
Key facts
- Gross revenue increased by ~$0.5m
- On site Display Village and sales presence
- House and Land packages
- Responsive Architectural and Civil packages on difficult lots
- Targeted marketing campaign
- All stages of the project sold out prior to title registration
- Retail and wholesale sales channels
Contact
Project 4 – Small Unit Development
McAndrew Property Group was engaged to assist the property owner in obtaining a Development Approval for the site following the recent update of the Local Town Planning regulations. McAndrew Property Group assisted in setting up the project team and provided strategic advice in determining the product mix, size, specifications and design. This led to a Development Application being approved within 9 months under the new town planning regulation.
Following receipt of the DA, the owners circumstances had changed which necessitated the sale of the site, which McAndrew Property Group was appointed to manage. Following a successful tender campaign, 6 written offers were achieved, resulting in an unconditional contract being signed upon the close out of the tender, setting a new record for a development site of its size in the suburb.
Key facts
- Development Application advice and assistance
- New City Plan LMR development site
- 1 & 2 bedroom units
- Record development site sale price for the suburb
- 6 written offers and unconditional sale within 6 weeks
Contact
Project 5 – Aston Apartments – Mixed Use Development
McAndrew Property Group was exclusively engaged on this project from acquisition right through to settlement. Initial advice was provided regarding pricing, lot mix, size and finishes in order to create a product appealing to both the investor and local markets. Given the location of the project, the decision was made to negotiate the transfer of 6 NRAS licenses onto the project. McAndrew Property Group successfully negotiated the transfer of these licenses before launch to the local market. This assisted in pre-sales on the first off-market release of the project, allowing the project to quickly achieve the required amount of unconditional contracts for construction funding. The project was successfully delivered and sold out 100% before completion, setting a new benchmark for pricing in the area.
Key facts
- Project advisory beginning at acquisition stage
- Design advice, lot mix, sizing and pricing of entire project
- Negotiation of NRAS license transfer
- Off market pre-sales to achieve construction funding
- 100% Sell Out before completion
Contact
Project 6 – Townhouse Development
McAndrew Property Group negotiated the take out of a 19-lot townhouse estate with one of Queensland’s largest townhouse developers. Due to the smaller size of the project then usually delivered by this developer, and McAndrew Property Group’s demand for boutique investment product, the project was sold 100% off market through national investment groups. McAndrew Property Group was responsible for pricing, preparation of marketing material, contract and stock management, and handover of the project on settlement. Utilising the Group’s broad network of clients the project was successfully sold out and McAndrew Property Group’s property management division rented out the whole estate.
Key facts
- Project pricing, preparation of marketing material
- Contract and stock management
- Off market sales through national sales network
- Rental of estate on completion