JV on development site

Hello all, I have a large urban zoned development site (all services available) in Moruya NSW (40acres) - since residex had it as a 'hot spot' in 2017 prices have really started to move. I have only developed 3 townhouses at once, and this is way too large for me to do on my own.

Any advice on trying to find a JV partner to look at this site?

 

@jaytee That is a massive site !

How did you finish up with that ?

Don't think I'd have anything I could add on a JV partner or funding it.
Sounds like a lot of funds are needed.

 

I think it's going to be hard to attract the usual developers to this area so I would focus on the developers in the area and start making some phone calls.

Have you done a feasibility study and if so, what are the anticipated returns? How many lots are you expecting?

 

Thanks Andrew - I agree. I'm looking at somewhere around 100 / 150 lots. i'm in the process of doing all the survey's/heritage reports/soil testing etc, I'm holding off on the feasibility until I can get an accurate retail price on the lots are they are all over the place at the moment. There are a few decent subdivisions selling in the area, but given it's rural/coastal taking that many to market at once is too risky. Issue is having to upgrade the sewer pump (over 150 lots doesn't cost a lot, but to do 10 house land packages at a time it would).

I also think a retirement village on the block would be perfect! the land is walking distance to the golf club.

 

Do you have to upgrade the sewer for the first stage or is there capacity with the existing system? It would be unusual to do 150 lots in one line and not stage them. The beauty of land is the quick turn around time from DA to settlement of the first stage which then helps fund the future stages (including civils and infrastructure for the future stages).

You should make sure you have a feaso done before you start approaching potential JV partners as well. You can qualify the assumptions you make and also ensure you aren't making unrealistic assumptions.

The RV space is pretty active at the moment so it would definitely be worth a call to some of the RV operators to gauge their interest.