This one is a JV effort with @Shahin_Afarin, its been a while in the making, but now that construction is progressing well, thought it would be a good time to share What is it? This is an approx 390sqm warehouse site that was purchased off-market thanks to one of Shahin's contacts. We spent a long time negotiating the terms to ensure that it was subject to DA approval as we didn't want the risk of waiting for DA. Its a challenging/contentious site as it was in a narrow street, built completely to boundary and a conversion from industrial to residential. We also had challenges around some metals contamination in the soil requiring numerous reports and consultants around remediation. We also had a challenging tenant on a fixed lease whom we had to wait to vacate first. The Development The approval is for 4 attached strata titled terrace-style townhouses. We had the benefit of utilising the existing footprint but this also presented a logistical challenge as we were building on essentially 100% of the site. We've had all sorts of 'fun' like facing the council's Traffic Committee to get approvals. Each dwelling will be 3 bedrooms, study, 2.5 bathrooms, garage, 3 balconies and courtyard. The Numbers Purchase price: $4,250,000 Stamp duty, legals: $255,000 CC & s73: $40,000 Other consultants: $50,000 S94 and LSL: $47,000 Holding costs/interest (approx): $250,000 Other costs/contingency: $100,000 Construction: $2,000,000 Total: approx $7,000,000 Estimated value on completion: $8,800,000 The Strategy The JV was conceived in 2017 when we realised we could combine funds/experience/skills and work on a larger project at a higher margin. In this case its very much a 50/50 JV and has worked fantastically to date (if I can say so from my POV). We put the properties on the market off-the-plan in early 2018 (when we could see weakness in the Sydney market) and that has assisting in selling 2 out of the 4 off the plan and hedging some of our risk. I'll let Shahin tell some more of the story, and also watch this space as are planning an event coming up!