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Bentleigh, Vic Townhouse Development

Discussion in 'Development' started by Be Developer, 31st Mar, 2016.

  1. Be Developer

    Be Developer Property Developer Business Member

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    Phew……..........

    What a stressful year but we did it, we got plans and permits approved this year for this project.

    For those who dream of becoming a developer and taking on challenging projects this thread may be helpful to you. Never give up that is one thing I have learnt.

    This is a long thread but be patient, it will show you how to corner authority when you have right team on board.

    Purchased this site -

    Settlement date September 2015 (Cost - $920,000 including stamp duty)




    Strategy 1

    The original plan was to get approval for 12 apartments and flick the site to a future developer. As apartment development would have been commercial construction loan and matter of risk vs reward vs time frame, etc

    Each apartment site was sellingat time for $110k per site.

    12 x $110k

    End value - $1.3M


    We progressed plans and permits to Council, however the apartment proposal was rejected.

    Well, execute plan B( Stretagy 2)

    Strategy 2

    Place the site at auction without permits, last bid at auction was $1.2M. I decided not to sell at this price, despite the excellent gains within a six month period.

    I Then decided to lodge an appeal at VCAT and we were given a hearing date for may-2016.

    (This is where our geniuse team at our HQ pulled some Swifty plan)


    Strategy 3

    While there was an active appeal at VCAT ,we also decided to cover my bases and lodge plans and permits for four high specification townhouses (4 x 3) with Council. The application went through its normal channels of Council, we had two minor objections and we were called into DPC (Development Planning Committee).

    By doing above, we made it very clear to council that one way or another development is happening on site. Take a pick apartments or Townhouse. As we had concurrent application running at diffrent level in system.

    We worked out a clever strategy while all this was happening we decided to resubmit plans to VCAT from our original submission of apartments to these four townhouses.
    (Via substitution of plans)

    So we ended up with,

    1 active application at VCAT and
    1 active application at Council for the same outcome for 4 townhouses.


    My team just attended DPC meeting and we have succeeded in approval for the 4 townhouses permit with few minor conditions.



    Scenario 1 and estimated end value

    12 apartments @ $110,000 would come in at $1.3M


    Scenario 2 - four townhouses and end value (quick numbers)

    Land $920K

    Professional fees $80K

    $1M construction

    $200K holding/contingency/contributions,etc

    Total $2,200,000

    Conservative sale price

    $800,000 each x 4 (comaprables are at $850k plus)

    $3.2M

    Profit $1,000,000 (give n take)



    Big thanks to my amazing team! It pays of to have best of best on your army when you are on path to take on council who is adamant at their own crappy planning policies.

    Best Birthday present, cant complain, I am currently in US awake, could not sleep too excited..


    Once our Thomastown is finished, we may build this or cash out profilt withiut actually developing end product.
     
    Tufan Chakir, Chabs, Egga and 13 others like this.
  2. MTR

    MTR Well-Known Member Premium Member

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    Congratulations I know its been a long road, I have been following this project closely.
    Great Bayside area.

    Glen Eira Council are a nightmare to deal with so my architect tells me, you played it very well

    You also now have scenario 3 - sell plans and permits for 4 townhouses, they are as rare as hens teeth, I expect builders/developers fighting for these, go to auction:)

    Now lets get my development over the line

    MTR:)
     
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  3. Be Developer

    Be Developer Property Developer Business Member

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    other_view-3.jpg 01.jpg Some quick 3D renders..... Detailed one will be ready in couple of weeks.
     
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  4. Big Daddy

    Big Daddy Well-Known Member

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    Thanks for that great idea. Can you explain why having the same plans at vcat and council helped persuade the council?

    Also why would vcat let you swap plans to a totally different product?
     
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I don't really understand why you wouldn't have continued the VCAT option with the apartments. Then when Council approved the 4 townhouses you would have had an option to drop the VCAT apartments or continue with the VCAT case and see if that would be approved.
    I guess there is a lot more to the situation than I'm understanding.
    I have a similar situation where I'm waiting for a SAT (like VCAT) trial for a refused DA and have my backup DA at council at the moment. If my backup DA is refused then I can also take that to SAT and my first case will be heard. I can't substitute as the second DA is a completely new one not an ammendment to the first.
     
  6. Aaron Sice

    Aaron Sice Well-Known Member

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    I looked a these designs and I thought "Colorado Rockys"...! Would be great to see the plans but understand you may not be able to post them up.

    What are the apartments? 1bed? 2bed?

    Great to see successes all round.
     
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  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Totally thought they look American too. Maybe it was the fir trees in the landscape but it reminded me of the ranch style they like.
     
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  8. MTR

    MTR Well-Known Member Premium Member

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    I think I would take the money and run (plans and permits) or go with townhouse option of building.

    There is significant profit on the 4 townhouses scenario, less risk as we don't know when the market may turn its been going strong in Melb since 2013, finance easier to secure, product easier to sell and then you have ROI, apartments will take much longer to build.

    MTR:)
     
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  9. Cactus

    Cactus Well-Known Member

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    Great result. What's would you consider the extra time from passing in at auction to completing the townhouse development to be?
     
  10. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Agreed if the market appetite hadn't risen for selling as a DA approved site with apartment approval. I was just curious how the though process had gone.

    If the return on the townhouses is greater, and it seems to be, and can be done by bedeveloper then it's the way to go.
     
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  11. littletee

    littletee Active Member

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    Sounds great but I question the $1mil for build - that sounds extremely conservative for 4 x 3bed I would of thought? How big are they each in total?
     
  12. Redwood

    Redwood Well-Known Member

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    Bro - Well done! Bentleigh is going gangbusters so don't know why they did not approve the apt when they have approved so many in the area (inc East Bentleigh).

    Re the 4 TH - I am sure you will sell them easily.....

    Really happy for you.

    Cheers Ivan
     
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  13. Westminster

    Westminster Tigress at Tiger Developments Business Member

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  14. MsAli

    MsAli Well-Known Member Premium Member

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  15. monalisa

    monalisa Well-Known Member Premium Member

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  16. MTR

    MTR Well-Known Member Premium Member

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    it's the power of volume with builders, you have client base then you barter
     
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  17. Be Developer

    Be Developer Property Developer Business Member

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    72 sq x $13500 give you a round about $1 m figure.

    Cost saving is combination of volume we have and some smart/cleaver design/material ethos we use.

    My research labs spends enough time exploring cost saving mesures to bring down Total Development Cost.

    If you look at those (even crappy) 3D render.. You will notice, we didn't use brick whatsoever.

    Concrete blocks will become load barring structure and have light weight material wooden grin panels on second floor.

    Brings down cost of steel and piers.

    I think with our next project we may even use concrete panles loaded with approved level of shettred glass. Cost may go up for material but it will be quick construction time and will have enough sunlight thru out dwellings.
     
    Last edited: 1st Apr, 2016
  18. Be Developer

    Be Developer Property Developer Business Member

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    @Aaron Sice & @Westminster


    Brief to render was scandavanien look...he litterly took that to landscaping too.
    :)

    @wm I ll explained the whole process in a detail bit later in the day when I have acess to full qwerty keyboard.
     
    Last edited: 1st Apr, 2016
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  19. Be Developer

    Be Developer Property Developer Business Member

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    RGZ consolidated lots, apartment approval no problem.

    GRZ single lot (circa 600 sq meter) any thing multi dwelling is gone to VCAT for last 12 months or even longer.

    As you know, planning isn't issue ,politics is.

    We have one more site in same location, VCAT hearing is few weeks away for similar development. Given this one was approved at council level. We are hopeful of getting that over the line too.

    However as you know at VCAT, all depend on member of the day, and if coffe was hot or cold.
     
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  20. Be Developer

    Be Developer Property Developer Business Member

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    We did auction on sep -2015 (site was bought in Feb 2015 with 6 months settlement). If everything goes according to plans we will start building/ off the plan selling in Oct this year.

    It gives us time to sell it in summer and get best end result.

    This is just what I am thinking. As I said above, we may consider selling it with approval.
     
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