Our Real Deal comes from Mark Schneider and is a multi-strategy deal, involving 58 Apartments, 7 Townhouses and 3 Shops in Warrnambool on a 8,200m2 block.
As you can imagine, this deal is a relatively complex one, involving a several different stages and LOTS of creativity!
Involving an amendment to the local planning scheme, this deal has not been a small feat, especially considering the impact COVID lockdowns had on the planning process.
Initially acquired by a previous developer with a delayed settlement, Mark was invited to come in as a servicing partner to assist as guarantor for the purchase loan. As things transpired, Mark was required to be on title alone for the project to proceed.
The original buyer was however able to negotiate a handsome 25% discount to the original asking price, by offering to pay a higher deposit of 40%....proving that a little creativity can certainly work in your favour. And whilst the purchase had a 12 month settlement period, it ended up taking 3 years to get development approval. Yep that's right….3 years! But considering the complexity, this is not unusual for this type of Development.
With complex Funding arrangements and poorly executed Commercial Valuations, a separation from one of the founding JV Partners, timber shortages, and some unexpected Cultural Heritage delays adding to the 'fun' of it, this deal is ripe for a TONNE of learnings.
One of Mark's main tips….having a strong A-Team behind you for planning, cultural heritage, traffic management, design and construction, and also last but not least, marketing and sales is the absolute key!
Are you looking to do Developments AT SCALE?…then this Real Deal is not to be missed!