Project Example - 1147 South Pine Road, Arana Hills: End value $9.8mill - 40% return to investors

This is a typical example of a speculative industrial development project that Castle Property Group was, and would be involved with at all stages to ensure a successful outcome for the developer. This can be broken up into the following:

1) Project Sourcing - There had been little to no new development within north Western Brisbane due to lack of industrial land, hence an already built up demand for smaller units, predominantly suited to owner occupiers making this an ideal value add development project.

2) Purchase - The site had an existing income from 6 units and a telecommunications tower, which helped offset holding costs. An extended settlement term allowed for Building Approvals to be finalised before settlement, hence minimising holding costs.

3) Project Design - Market research had shown strong demand for strata titled units for small businesses. For this reason most units average between 108m2 - 244m2. Particular attention was given to access and car parking.

4) Construction Management - Each unit was designed and built to offer maximum flexibility for the purchasers. This would include, good height, ample three phase power, electric roller doors, mezzanine office areas, good internal natural light, exclusive car parking, and exclusive fenced yard areas, which is none existent in most unit developments.

5) Project Sale and Marketing - As predicted, 22 units were sold to owner occupiers, while the other three were leased and on sold to investors. Sale prices varied between $275,000 to $500,000.

Location

Location

Very little industrial land throughout North Western Brisbane...

As Purchased

As Purchased

The site offered many advantages, but just as many hurdles....

Project Design

Project Design

19 additional units are added to the site...

Completed Project

Completed Project

26 units with 77 onsite car parks....

Completed Project - End value $9.8 million

Completed Project - End value $9.8 million

All 26 units were sold or leased within 18 months

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