C18040 Feasibility Testing 3-5 Carrington Road & 3 Myrtle Street Marrickville Feasibility Testing 1 of 8 Mark Maryska Director – CityState Property Level 32, 200 George Street NSW 2000 30 August 2017 Dear Mark, Subject: Feasibility Testing 2-16 Myrtle Street Marrickville It is understood CityState is reviewing the DP&E Sydenham to Bankstown Urban Renewal Corridor Marrickville Station Precinct (strategy) and is currently testing the feasibility of developing medium to high density residential apartments to a maximum of 8 storeys on the site at 2 to 16 Myrtle Street, Marrickville (hereafter referred to as the Subject Site). The strategy notes the future land use of the Subject Site as medium to high density residential. Figure 1: Subject Sites Tested HillPDA was commissioned by CityState to model and comment on the feasibility of the hypothetical development of the Subject Site which is the purpose of this letter. HillPDA used its proprietary Estate Master Development Feasibility software which simulates the costs and revenues in a cash flow to derive key performance indicators such as development margin, net present value and internal rate of return. Level 3, 234 George St Sydney NSW 2000 02 9252 8777 [email protected]hillpda.com ABN 52 003 963 755
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Subject: Feasibility Testing 2-16 Myrtle Street Marrickville · residential apartments to a maximum of 8 storeys on the site at 2 to 16 Myrtle Street, Marrickville (hereafter referred
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C18040 Feasibility Testing 3-5 Carrington Road & 3 Myrtle Street Marrickville Feasibility Testing 1 of 8
Mark Maryska
Director – CityState Property Level 32, 200 George Street NSW 2000
30 August 2017
Dear Mark,
Subject: Feasibility Testing 2-16 Myrtle Street Marrickville
It is understood CityState is reviewing the DP&E Sydenham to Bankstown Urban Renewal Corridor Marrickville
Station Precinct (strategy) and is currently testing the feasibility of developing medium to high density
residential apartments to a maximum of 8 storeys on the site at 2 to 16 Myrtle Street, Marrickville (hereafter
referred to as the Subject Site). The strategy notes the future land use of the Subject Site as medium to high
density residential.
Figure 1: Subject Sites Tested
HillPDA was commissioned by CityState to model and comment on the feasibility of the hypothetical
development of the Subject Site which is the purpose of this letter. HillPDA used its proprietary Estate Master
Development Feasibility software which simulates the costs and revenues in a cash flow to derive key
performance indicators such as development margin, net present value and internal rate of return.
C18040 Feasibility Testing 3-5 Carrington Road & 3 Myrtle Street Marrickville Feasibility Testing 6 of 8
: CASHFLOW APPENDIX A
Myrtle Street Marrickville : 5% Affordable Housing
Development Feasibility ModelEstateMaster Licensed to: HillPDA
Project Size :Date of Report :
Time Span :
Type :
Status :
Site Area : 2,942 SqM
Under Review
Miscellaneous
1 per 0.36 SqM of Site Area
2.73:1
8,031.66 SqM
Project Size :
FSR :
Equated GFA :
Address :
State/County
Country
Developer :
Prepared For :
Prepared By :
Jan-17 to Apr-20 (39 Months)
29-Aug-2017 97 Units
1 per 30.32 SqM of Site Area
8,027 GFA
City State
City State
HillPDA
City/Suburb
Address
Disclaimer1.This report and its attached appendices are based on estimates, assumptions and information provided by the Client or sourced and referenced from external sources by Hill PDA. While we endeavour to check these estimates, assumptions and information, no warranty is given in relation to their reliability, feasibility, accuracy or reasonableness. Hill PDA presents these estimates and assumptions as a basis for the Client’s interpretation and analysis. With respect to forecasts, Hill PDA does not present them as results that will actually be achieved. Hill PDA relies upon the interpretation of the Client to judge for itself the likelihood of whether these projections can be achieved or not.2. Due care has been taken to prepare the attached financial models from available information at the time of writing, however no responsibility can be or is accepted for errors or inaccuracies that may have occurred either with the programming or the resultant financial projections and their assumptions.
2017/01 : Marrickville
EstateMaster DF Ver 6.30 Page 1 of 1 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
M rtle treet Marrickville fforda le o sing
Estate Master icensed to: illPD
ime an: an 17 to r 20 39 Mont se: Miscellaneo s
tat s: nder Revieite rea: 2 9 2 M
F R: 2.73:1 E ated F : 8 031.66 MPro ect i e: 97 nits 1 er 30.32 M of ite rea
tat tor Fees 2 330 061 2 021 290 3.0and olding Costs 6 0 920 6 607 80 0.8
Pre ale Commissions 1 067 296 11 003 133 1.Finance C arges inc. Fees 1 937 00 19 97 2 1 2.nterest E ense 2 022 821 20 8 2 2 2.6
C efore reclaimed 7 8 70 778 203 9 0 9 .9 ess reclaimed 281 310 137 33 . Pl s Cor orate a 0.0
Per nit Per F
77 006 9313
ased on total costs inc selling costsResid al and Val e ased on arget Margin of 20 18 0 9 191 2 7 2 311
ased on Disco nt Rate of 20 .a. ominal6 enefit Cost Ratio 0.8 377
Per ann m ominal8 Resid al and Val e ased on PV 1 09 200 1 8 8 8 1 920
E it RR Per ann m ominal 11. 0E it Contri tion 23 777 669Peak De t E os re 7 718 179E it to De t Ratio 3.8
9 eig ted verage Cost of Ca ital CC 2.9310 reakeven Date for C m lative Cas Flo Mont 39 r 202011 ield on Cost 0.0012 Rent Cover . .13 Profit Erosion . .
1. Develo ment Profit: is total reven e less total cost incl ding interest aid and received3. Develo ment Margin: is rofit divided total costs inc selling costs
. Resid al and Val e: is t e ma im m rc ase rice for t e land ilst ac ieving t e target develo ment margin.
. et Present Val e: is t e ro ect s cas flo stream disco nted to resent val e. t incl des financing costs t e cl des interest and cor ta .6. enefit:Cost Ratio: is t e ratio of disco nted incomes to disco nted costs and incl des financing costs t e cl des interest and cor ta .7. nternal Rate of Ret rn: is t e disco nt rate ere t e PV a ove e als ero.8. Resid al and Val e ased on PV : is t e rc ase rice for t e land to ac ieve a ero PV.9. e eig ted verage Cost of Ca ital CC is t e rate t at a com an is e ected to a to finance its assets.
10. reakeven date for C m lative Cas Flo : is t e last date en total de t and e it is re aid ie en rofit is realised .11 ield on Cost is C rrent et nn al Rent divided otal Costs efore reclaimed incl ding all elling Costs.
12. e total net develo ment rofit divided t e c rrent net ann al rental e ressed as a a n m er of ears/mont s.13. e eriod of time ost ractical com letion t at it can remain nsold t leased o t ntil finance and land olding costs erodes t e rofit for t e develo ment to ero.
F E R E R E R E F E F E F E
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M rtle Street Marrickville fforda le o sing
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Develo er s E it Senior oan
E it De t De t De t De t E it De t
ender ame ender ame ender ame oan
1 F nds Invested (Cas tla ) 23 777 669 1 8 28 23 777 669 1 8 28 of Total F nds Invested 3 .00 0.00 0.00 0.00 6 .00 3 .00 6 .00
2 Peak E os re 23 777 669 7 718 179 23 777 669 7 718 179Date of Peak E os re an 18 . . . . . . Fe 20 an 18 Fe 20Mont of Peak E os re Mont 12 Mont 37 Mont 12 Mont 37
ine Fees C arged 1 687 00 1 687 00lication Fees C arged 2 0 000 2 0 000
Profit S are Received 3 Total Profit to F nders 7 69 3 960 321 7 69 3 960 321
Margin on F nds Invested 31. 1 . . . . . . 8.97 31. 1 8.97Pa ack Date r 20 . . . . . . r 20 r 20 r 20Mont of Pa ack Mont 39 . . . . . . Mont 39 Mont 39 Mont 39
6 IRR on F nds Invested 11. 0 . . . . . . 9.01 11. 0 9.017 E it to De t Ratio . . . . . . 3.8 3.88 oan to Val e Ratio 27. 7 0.00 0.00 0.00 .33 27. 7 .339 oan Ratio 98.72 0.00 0.00 0.00 71. 6 98.72 199.79
of and P rc ase Price. of and P rc ase Price. of and P rc ase Price. of and P rc ase Price. of Project Costs (net of Interest/Fees and GST).
of and P rc ase Price. of and P rc ase Price.
1. T e total amo nt of f nding injected into t e roject cas flo .2. T e ma im m cas flo e os re of t at e it /de t facilit incl ding ca italised interest.3. T e total re a ments less f nds invested incl ding rofit s are aid or received.
. Margin is net rofit divided total f nds invested (cas o tla ).
. Pa ack date for t e e it /de t facilit is t e last date en total e it /de t is re aid.6. IRR on F nds Invested is t e IRR of t e e it cas flo incl ding t e ret rn of e it and realisation of roject rofits.7. E it to De t Ratio is t e amo nt of e it contri ted into t e roject as a ercentage of de t f nding.8. oan to Val e ratio is t e Peak E it /De t E os re divided Total Sales Reven e.9. oan Ratio is t e total f nds invested t e lender (cas o tla ) divided t e nominated ratio calc lation met od. It incl des ca italised interest and fees.
F nding D ration (First Dra do n to Final Re a ment)
Developer's Equity
Loan 1
Loan 2
Loan 3
Loan 4
Main Inputs for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 1 of 5 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
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Cash Flow Title Myrtle Street Marrickville Description of Option/Stage 5% Affordable ousing Input S eet astDate of First Period: an-2017 as ption Stage Cash Flow Rest Period: MonthlyPro ect Si e (a) 97.00 UnitsPro ect Si e (b) 8,027.00 GFASite Area 2,942.00 S M Floor Space Ratio 2.73 :1 E uated Gross Floor Area 8,031.66 S M
Type MiscellaneousStatus Under Review
Using Margin Scheme
NGoods and Services Tax Rate 10.00% 12.50% 20.00% 0.00% Developer Credits Reclaimed in the Same Month iability Paid in the Same Month iability on Sales All Paid by Developer
Value at 1-7-2000 or Ac uisition Price 24,084,7590.0%
Start Span %Owner All Pro ect Costs To be entered Exclusive of GST - 0 - - Rental Income easing Costs To be entered Inclusive of GST
Sales Revenue To be entered Inclusive of GSTOther Income To be entered Inclusive of GST
Costs to be entered Exclusive of GST -
and Purchase Price 24,084,759GST Component on Purchase Price -
% of and Purchase Price AND/OR Month Month Cash Flow Add GST on and Price N Total Current Total Current Total EscalatedCode Stage % paid Amount ump Amount Start Span Period Reclaim All After Final and Settlement Costs (exc GST) Costs (inc GST) Cost1002 - Deposit In Trust Account ¹ 10.00% 2,408,476 - 0 1 an-17 - an-17 No input credit is available to the developer for 2,408,476 2,408,476 2,408,4761003 - Payment 1 0.00% - - 0 - - land purchase because the margin scheme is selected - - - 1004 - Payment 2 0.00% - - 0 - - - - - 1005 - Payment 3 0.00% - - 0 - - - - - 1006 - Payment 4 0.00% - - 0 - - - - - 1007 - Settlement (Balance) 90.00% 21,676,283 12 1 an-18 - an-18 21,676,283 21,676,283 21,676,2831008 - Stamp Duty ¹ NS 1,626,423 12 1 an-18 - an-18 (Stamp Duty calculated on and Value of 24,084,759) Stamp Duty 1,626,423 1,626,423 1,626,423
Interest on Deposit in Trust Account 0.00% Interest from deposit shared between parties T TA 25,711,182 25,711,182 25,711,182Profit Share to and Owner 0.00% Paid progressively as pro ect makes a profit.
t er Ac uisition Costs % of and Price inc Tax AND/OR Month Month Cash Flow Total Current Total Current Total EscalatedCode Stage (to be entered Exclusive of GST) % paid Amount ump Amount Start Span Period Add GST Remarks Costs (exc GST) Costs (inc GST) Cost1011 - Ac uisition Costs 0.00% - 10,000 0 1 an-17 - an-17 10,000 11,000 11,0001012 - . 0.00% - - 0 - - - - - 1013 - 248296.4845 0.00% - - 0 - - - - - 1014 - 3000.468295 0.00% - - 0 - - - - - 1015 - . 0.00% - - 0 - - - - -
Manual Input (refer to Cash Flow) - - - ¹ (No GST credit available for Stamp Duty) ² Pro-rata with and Payments ( ) T TA 10,000 11,000 11,000Monthly Compounded Escalation - based on Cashflow Period ears commencing
Code Construction Costs (Uncategorised)SUB Subdivision CostsSTG Stage CostsBUI Built FormOT1 OtherOT2 Other
None Statutory FeesEstateMa or orksMiscellaneous Costs 2Miscellaneous Costs 3
and olding CostsSelling and easing CostsFinance Costs
- And / Or 0.00% of Construction, Professional (exc Development Management), Statutory Fees, EstateMa or orks, Miscellaneous Costs 2, Miscellaneous Costs 3 and Pre-Sale Commissions T TA -
Costs to be entered Exclusive of GST
Code Stage Description % ofConstruct. ¹
AND / ORNo. Units
BaseRate / Unit
Escalate(E,R,N) S-Curve Month
Start²Month
SpanCash Flow
Period% Paid by
Owner Add GST Remarks Total Current Costs (exc GST)
¹ % Based on Net Costs ² Pro-rata with Construction ( C )3099 - Development Management 0.00% % of Pro ect Costs (exc and, Finance Tax) - p2 - an-17 - Feb-20 - - - -
² Dev Mgmt Fee: Pro-rata with Construction ( C ), Settlements ( S ), Pro ect Costs inc and ( P1 ) or exc and ( P2 ) Manual Input (refer to Cash Flow) - - - T TA 2,320,613 2,552,674 2,552,674
Costs to be entered Exclusive of GST
Code Stage Description Cost Type Units BaseRate / Units
Escalate(E,R,N)1 S-Curve Month
StartMonth
SpanCash Flow
Period% Paid by
Owner Add GST Remarks Total Current Costs (exc GST)
¹ Escalation ( N no escalation, E escalation to start period, R escalation to start period and through span) Manual Input (refer to Cash Flow) - - -
4099 Construction Contingency - And / Or 5.00% of Construction Costs (inc GST) Construction Contingency 1,697,500 1,867,250 1,867,250T TA 35,647,500 39,212,250 39,212,250
Costs to be entered Exclusive of GST
Code Stage Description Units BaseRate / Units
Escalate(E,R,N) S-Curve Month
StartMonth
SpanCash Flow
Period% Paid by
Owner Add GST Remarks Total Current Costs (exc GST)
Manual Input (refer to Cash Flow) - - - ¹ early, BA BiAnnualy, uarterly, BM BiMonthly, M Monthly ² Diminish proportionally with easing ( DR ) or Settlements ( DS ) T TA 213,640 213,640 640,920
Monthly Compounded Escalation - based on Cashflow Period ears commencing
Manual Input (refer to Cash Flow) - - - Pro-rata with Rental Income ( R ) T TA - - -
Sales Revenue to be entered Inclusive of GST1 Current Sales Pre-Sale Exchange Settlements Sales Rate and Revenue Total Current Total Current Total Escalated
Code Stage Description No. Units Total Area Sale Calc Month Month Month Month Cash Flow Units / S M % Split to GST Use Collection Sales Revenue Sales Revenue Sales RevenueS M Price Method Start Span Start Span Period per Month Owner Included Code Profile (exc GST) (inc GST)
9001 - Affordable ousing % Per S M - - - - - - - - 9002 - 0.05 5 349 - Per S M 38 2 Mar-20 - Apr-20 174.59 - N AF - - - - 9003 - Per S M 38 2 Mar-20 - Apr-20 - - - - - - - 9004 - Market Unit Balcance 92 6,634 13,000 Per S M 12 5 38 2 Mar-20 - Apr-20 1,326.86 - RS1 - 80,595,070 86,246,102 86,246,1029005 - . - - Per S M 0 - 38 2 Mar-20 - Apr-20 - - - - - - - 9006 - Per S M 0 - 38 2 Mar-20 - Apr-20 - - RS1 - - - - 9007 - . - - - Per S M 0 - 0 - - - - - - - - - 9008 - . - - - Per S M 0 - 0 - - - - - - - - - 9009 - . - - - Per Unit 0 - 0 - - - - - - - - - 9010 - . - - - Per Unit 0 - 0 - - - - - - - - - 9011 - . - - - Per Unit 0 - 0 - - - - - - - - - 9012 - . - - - Per Unit 0 - 0 - - - - - - - - - 9013 - . - - - Per Unit 0 - 0 - - - - - - - - - 9014 - . - - - Per Unit 0 - 0 - - - - - - - - - 9015 - . - - - Per Unit 0 - 0 - - - - - - - - - 9016 - . - - - Per Unit 0 - 0 - - - - - - - - - 9017 - . - - - Per Unit 0 - 0 - - - - - - - - - 9018 - . - - - Per Unit 0 - 0 - - - - - - - - - 9019 - . - - - Per Unit 0 - 0 - - - - - - - - - 9020 - . - - - Per Unit 0 - 0 - - - - - - - - -
Capitalised Sales (refer to Tenants) - - - Manual Input (refer to Cash Flow) - - -
T TA 80,595,070 86,246,102 86,246,102
Other Income to be entered Inclusive of GST
Code Stage Description and Use Code Units BaseRate / Units
MonthStart
MonthSpan
Cash Flow Period
% Split toOwner GST Included Remarks Total Current
Manual Input (refer to Cash Flow) - - - T TA - - -
(Simple Mode)
General otes All ine Fees are paid during period of debt, in arrearsAll Profit Share is Paid progressively as pro ect makes a profit.
E uity E uity otes E uity is paying outstanding debt Opening Balances E uityDeveloper s E uity Contribution Fixed Amount Percentage E uity is repaid at pro ect end. TotalsProgressively in ected when re uired. - 35.00% % of Net Cash Flow to be Funded Developer s In ections 23,777,669
10001 Interest Charged on E uity 0.00% per annum Nominal - Capitalised (Compounded) - Interest Charged - 10002 Interest received on Surplus Cash 0.00% per annum received in arrears. - Interest Received -
% of Available Funds to Repay E uity Before Debt 0.00%
and Owner s E uity Contribution - -
Senior oan Description oan Debt Senior oan otes Senior oan is being used as an overdraft facility. Opening Balances Senior oan
No imit (use as overdraft facility) - Totals
Main Inputs for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 5 of 5 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
Drawdown 44,158,52810007 Interest Rate 4.50% per annum Nominal - Capitalised (Compounded) - Interest Charged 2,022,821
Manual Input (refer to Cash Flow) - - - T TA - - -
Pro ect Discount Rate (target IRR) 20.00% per annum Nominal, on cash flow that includes financing costs but excludes interest and corp tax. 0.00%
Nominate an estimate of IRR 20.00% per ann.Developer s Target Dev. Margin 20.00% on total development costs (inc selling costs).Developer s Cost of E uity (for ACC) 0.00%
Cash Flow Table for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 1 of 6 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
an 17 Fe 17 Mar 17 r 17 Ma 17 n 17 l 17 g 17 e 17 ct 17 ov 17 Dec 17 an 18 Fe 18
Sale Su arynits old 96.99
C m lative nits old nits old
M old 6 983.49 C m lative M old M old
D old 86 246 102 C m lative D old D oldHandover Su ary
nits anded ver 96.99 C m lative nits anded ver nits anded ver
M anded ver 6 983.49 C m lative M anded ver M anded ver
D anded ver 86 246 102 C m lative D anded ver D anded ver
ro ect Cash Flow evenue ross ales Reven e 86 246 102 elling Costs 1 921 132 ross Rental ncome easing Costs t er ncome nterest Received Pa ments ia ilities 5 651 031 T TA T 78 673 938 Costs and and c isition 25 722 182 Professional Fees 2 552 674 Constr ction Costs inc. Contingenc 39 212 250 tat tor Fees 2 330 061 EstateMa or orks Miscellaneo s Costs 2 Miscellaneo s Costs 3 Pro ect Contingenc Reserve and olding Costs 640 920 Pre ale Commissions 1 067 296 Financing Costs e c Fees Ref nds n t Credits 4 281 310 T TA C STS 67 244 072
et Cas Flo efore nterest Cor orate a 11 429 866 C m lative Cas FloCor orate a
et Cas Flo efore nterest after Cor orate a 11 429 866 C m lative Cas FloFinancing evelo er s uity Man al d stments n ect / Re a n ections 23 777 669 nterest C arged E it Re a ment 31 247 214 ess Profit are E it alance 7 469 544 E it Cas Flo 7 469 544 ro ect Cash Account r l s Cas n ection 17 517 380 Cas Reserve Dra do n 17 517 380 nterest on r l s Cas r l s Cas alance Senior oan - oan De t Dra do n 44 158 528 oan nterest Rate /ann nterest C arged 2 022 821 lication and ine Fees 1 937 500 nterest Paid E it oan Re a ment 48 118 850 nterest and Fees 3 960 321 Princi al 44 158 528 oan alance of Pro ect Costs net of nterest/Fees and . enior oan Cas Flo 3 960 321 nterest Coverage Ratio 19.89 De t ervice Ratio 1.65 Pro ect verdraft of and P rc ase Price. otal E it to De t Ratio 53.85 otal De t nterest Coverage Ratio 19.89 otal De t ervice Ratio 1.65
et Cas Flo after nterest Cor orate a 7 469 544 C m lative Cas FloC eck alance
ro ect Cas Flo t at incl des financing costs t e cl des interest and cor ta . Static iscount ate er ann no inal 20.00 PV for eac Mont 7 687 403 PV of F t re Cas Flo s ariable iscount ate er ann no inal 20.00 PV sing eig ted avg disco nt rate 7 687 403
Cash Flow Table for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
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T TA 5
an 17 Fe 17 Mar 17 r 17 Ma 17 n 17 l 17 g 17 e 17 ct 17 ov 17 Dec 17 an 18 Fe 18
ncl des alf interest from de osit on land ac isition l s nterest received from re sale de osits
C m lative Cas Flo fter nterest is reven e less costs incl ding interest on overdraft
Estate Master icensed to: illPD
Cash Flow Table for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 3 of 6 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
Mar 18 r 18 Ma 18 n 18 l 18 g 18 e 18 ct 18 ov 18 Dec 18 an 19 Fe 19 Mar 19 r 19
Sale Su arynits old 96.99
C m lative nits old nits old
M old 6 983.49 C m lative M old M old
D old 86 246 102 C m lative D old D oldHandover Su ary
nits anded ver 96.99 C m lative nits anded ver nits anded ver
M anded ver 6 983.49 C m lative M anded ver M anded ver
D anded ver 86 246 102 C m lative D anded ver D anded ver
ro ect Cash Flow evenue ross ales Reven e 86 246 102 elling Costs 1 921 132 ross Rental ncome easing Costs t er ncome nterest Received Pa ments ia ilities 5 651 031 T TA T 78 673 938 Costs and and c isition 25 722 182 Professional Fees 2 552 674 Constr ction Costs inc. Contingenc 39 212 250 tat tor Fees 2 330 061 EstateMa or orks Miscellaneo s Costs 2 Miscellaneo s Costs 3 Pro ect Contingenc Reserve and olding Costs 640 920 Pre ale Commissions 1 067 296 Financing Costs e c Fees Ref nds n t Credits 4 281 310 T TA C STS 67 244 072
et Cas Flo efore nterest Cor orate a 11 429 866 C m lative Cas FloCor orate a
et Cas Flo efore nterest after Cor orate a 11 429 866 C m lative Cas FloFinancing evelo er s uity Man al d stments n ect / Re a n ections 23 777 669 nterest C arged E it Re a ment 31 247 214 ess Profit are E it alance 7 469 544 E it Cas Flo 7 469 544 ro ect Cash Account r l s Cas n ection 17 517 380 Cas Reserve Dra do n 17 517 380 nterest on r l s Cas r l s Cas alance Senior oan - oan De t Dra do n 44 158 528 oan nterest Rate /ann nterest C arged 2 022 821 lication and ine Fees 1 937 500 nterest Paid E it oan Re a ment 48 118 850 nterest and Fees 3 960 321 Princi al 44 158 528 oan alance of Pro ect Costs net of nterest/Fees and . enior oan Cas Flo 3 960 321 nterest Coverage Ratio 19.89 De t ervice Ratio 1.65 Pro ect verdraft of and P rc ase Price. otal E it to De t Ratio 53.85 otal De t nterest Coverage Ratio 19.89 otal De t ervice Ratio 1.65
et Cas Flo after nterest Cor orate a 7 469 544 C m lative Cas FloC eck alance
ro ect Cas Flo t at incl des financing costs t e cl des interest and cor ta . Static iscount ate er ann no inal 20.00 PV for eac Mont 7 687 403 PV of F t re Cas Flo s ariable iscount ate er ann no inal 20.00 PV sing eig ted avg disco nt rate 7 687 403
Cash Flow Table for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 4 of 6 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
T TA 5 5
Mar 18 r 18 Ma 18 n 18 l 18 g 18 e 18 ct 18 ov 18 Dec 18 an 19 Fe 19 Mar 19 r 19
ncl des alf interest from de osit on land ac isition l s nterest received from re sale de osits
C m lative Cas Flo fter nterest is reven e less costs incl ding interest on overdraft
Estate Master icensed to: illPD
Cash Flow Table for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 5 of 6 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
Ma 19 n 19 l 19 g 19 e 19 ct 19 ov 19 Dec 19 an 20 Fe 20 Mar 20 r 20
Sale Su arynits old 96.99
C m lative nits old nits old
M old 6 983.49 C m lative M old M old
D old 86 246 102 C m lative D old D oldHandover Su ary
nits anded ver 96.99 C m lative nits anded ver nits anded ver
M anded ver 6 983.49 C m lative M anded ver M anded ver
D anded ver 86 246 102 C m lative D anded ver D anded ver
ro ect Cash Flow evenue ross ales Reven e 86 246 102 elling Costs 1 921 132 ross Rental ncome easing Costs t er ncome nterest Received Pa ments ia ilities 5 651 031 T TA T 78 673 938 Costs and and c isition 25 722 182 Professional Fees 2 552 674 Constr ction Costs inc. Contingenc 39 212 250 tat tor Fees 2 330 061 EstateMa or orks Miscellaneo s Costs 2 Miscellaneo s Costs 3 Pro ect Contingenc Reserve and olding Costs 640 920 Pre ale Commissions 1 067 296 Financing Costs e c Fees Ref nds n t Credits 4 281 310 T TA C STS 67 244 072
et Cas Flo efore nterest Cor orate a 11 429 866 C m lative Cas FloCor orate a
et Cas Flo efore nterest after Cor orate a 11 429 866 C m lative Cas FloFinancing evelo er s uity Man al d stments n ect / Re a n ections 23 777 669 nterest C arged E it Re a ment 31 247 214 ess Profit are E it alance 7 469 544 E it Cas Flo 7 469 544 ro ect Cash Account r l s Cas n ection 17 517 380 Cas Reserve Dra do n 17 517 380 nterest on r l s Cas r l s Cas alance Senior oan - oan De t Dra do n 44 158 528 oan nterest Rate /ann nterest C arged 2 022 821 lication and ine Fees 1 937 500 nterest Paid E it oan Re a ment 48 118 850 nterest and Fees 3 960 321 Princi al 44 158 528 oan alance of Pro ect Costs net of nterest/Fees and . enior oan Cas Flo 3 960 321 nterest Coverage Ratio 19.89 De t ervice Ratio 1.65 Pro ect verdraft of and P rc ase Price. otal E it to De t Ratio 53.85 otal De t nterest Coverage Ratio 19.89 otal De t ervice Ratio 1.65
et Cas Flo after nterest Cor orate a 7 469 544 C m lative Cas FloC eck alance
ro ect Cas Flo t at incl des financing costs t e cl des interest and cor ta . Static iscount ate er ann no inal 20.00 PV for eac Mont 7 687 403 PV of F t re Cas Flo s ariable iscount ate er ann no inal 20.00 PV sing eig ted avg disco nt rate 7 687 403
Cash Flow Table for Marrickville Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 6 of 6 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
T TA 5
Ma 19 n 19 l 19 g 19 e 19 ct 19 ov 19 Dec 19 an 20 Fe 20 Mar 20 r 20
ncl des alf interest from de osit on land ac isition l s nterest received from re sale de osits
C m lative Cas Flo fter nterest is reven e less costs incl ding interest on overdraft
Estate Master icensed to: illPD
EstateMaster DF Ver 6.30 Page 1 of 2 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
M rtle treet Marrickville fforda le o sing
Estate Master icensed to: illPD
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ar19
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l19
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Pro ect verdraft et Cas Flo C m lative et Cas Flo
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and ner s E it Develo er s E it oan 1 oan 2 oan 3 enior oan
EstateMaster DF Ver 6.30 Page 2 of 2 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
M rtle treet Marrickville fforda le o sing
Estate Master icensed to: illPD
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et Cas Flo C m lative et Cas Flo
Assumptions Report for Marrickville as at Aug-2017Myrtle Street Marrickville - 5% Affordable Housing
EstateMaster DF Ver 6.30 Page 1 of 1 File: Carrington Road Marrickville.emdf Date: 29/08/2017 3:32 PM
enerala ation Format oods ervices a
C rrenc Format stralian Dollar Dtam D t ocation Calc lated on and inc.
Cas Flo Rest Period Mont lCas Flo D ration an 2017 to e 2020 Mont sFinancial ear End Mont neCost and ales Escalation Rates Mont l Com o nded Escalation ased on Cas flo Period earsDevelo ment Management Percentage asis of Pro ect Costs e c and Finance aEstateMa or orks Percentage asis of Constr ction Costs e c aMiscellaneo s Costs 2 Percentage asis of Constr ction Costs e c aMiscellaneo s Costs 3 Percentage asis of Constr ction Costs e c a
ales Reven e Collection Profile Disa ledtage Cas Flo lo al Cost llocation Met od s er lo al Costs Cas Flotage Cas Flo RR/ PV Calc lation Calc late from tart of Pro ect
a ationominated a e oods and ervices a ingle Rate 10.00
Pro ect Costs Entered E cl sive of Rent and easing Costs Entered ncl sive of
ales Reven e Entered ncl sive of t er ncome Entered ncl sive of a ia ilit Calc lation Met od Margin c eme it Val ation
Develo er s a ia ilities Paid in t e ame MontDevelo er s a n t Credits Reclaimed in t e ame MontDevelo er s a n t Credits on and P rc ase Reclaim ll fter Final and ettlement
oint entureDevelo ment e ingle Entit
a ia ilit ortionment ll Paid Develo erand ner s a ia ilities /and ner s a n t Credits /
Hurdle RatesPro ect Disco nt Rate target RR 20.00
and ner s Disco nt Rate arget RR /nn al to Rest Period Conversion Met od Converted to Mont l Rate sing ominal met od.
RR and PV Calc lation Calc lated on cas flo t at incl des financing costs t e cl des interest and cor ta .Develo er s arget Dev. Margin 20.00Develo ment Margin Calc lation Calc lated on total develo ment costs inc selling costs .
e Performance ndicators Calc lated on et Develo ment Profit fter Profit are
inancial ReportingFinancial Re orting and Cor orate a Ena ledReven e Recognition e Com letedReven e Recognition old Met od ased on of Reven e old
and ncl ded in P Calc lation esorks in Progress E ensed or erating Cost
and and c istion P Pro ect Contingenc PProfessional Fees P and olding Costs P
Constr ction Costs P elling Costs Ptat tor Fees P easing Costs P
EstateMa or orks P Finance Costs e c nterest Fees PMiscellaneo s Costs 2 P lication and ine Fees PMiscellaneo s Costs 3 P nterest C arges P
a enefit Roll for ard loss ntil rofit is realiseda Pa ment Paid Mont l
Pro ect E it reatment are olders E it Pro ect Ca ital
eneral inancing nn al nterest Rates Converted to Mont l Rate sing ominal conversion met od.otal De t to oan Ratio Calc lation mmar Re ort ased on of and P rc ase Price.
R nning De t to oan Ratio Calc lation Cas Flo Re ort ased on C m lative oan Dra do nstatic De t to oan Ratio Calc lation mmar Re ort ncl des Ca italised nterest and Fees
Profit are Pa ments Paid rogressivel as ro ect makes a rofit.ard Costs
and Pa ments ncl ded tat tor Fees ncl dedand c isitions Costs ncl ded and olding Costs ncl ded
Pro ect Contingenc ncl ded EstateMa or orks ncl dedProfessional Fees ncl ded Miscellaneo s Costs 2 ncl ded
Constr ction Costs ncl ded Miscellaneo s Costs 3 ncl deda on ard Costs E cl ded
uityoan Facilit imit ased on 3 of et Cas Flo to e F nded
E it Dra do n Met od Progressivel in ected en re ired.nterest C arged on E it 0.00 Ca italised Com o ndednterest Received on l s Cas 0.00
E it Ratio Calc lation mmar Re ort ased on of and P rc ase Price.E it Re a ment Met od 0 of vaila le F nds to Re a E it efore De t t en alance re aid at ro ect end.E it Pa s tstanding De ts at Pro ect End es
oan 1 ebtoan Facilit imit ased on Fi ed mo nt of 0oan Dra do n Met od Dra n do n in total at loan commencement.
nterest C arged on oan 0.00 Ca italised Com o ndedine Fee Pa ment Mont l Paid in rrearsoan Ratio Calc lation mmar Re ort ased on of and P rc ase Price.oan Commencement tomatic oan Mat rit tomatic
Refinancier at Man al oan Mat rit ot lica le as loan is a tomaticall re aid as f nds are availa le.
oan 2 ebtoan Facilit imit ased on Fi ed mo nt of 0oan Dra do n Met od Dra n do n in total at loan commencement.
nterest C arged on oan 0.00 Ca italised Com o ndedine Fee Pa ment Mont l Paid in rrearsoan Ratio Calc lation mmar Re ort ased on of and P rc ase Price.oan Commencement tomatic oan Mat rit tomatic
Refinancier at Man al oan Mat rit ot lica le as loan is a tomaticall re aid as f nds are availa le.
oan ebtoan Facilit imit ased on Fi ed mo nt of 0oan Dra do n Met od Dra n do n in total at loan commencement.
nterest C arged on oan 0.00 Ca italised Com o ndedine Fee Pa ment Mont l Paid in rrearsoan Ratio Calc lation mmar Re ort ased on of and P rc ase Price.oan Commencement tomatic oan Mat rit tomatic
Refinancier at Man al oan Mat rit ot lica le as loan is a tomaticall re aid as f nds are availa le.
Senior oan ebtoan Facilit imit o imit se as overdraft facilit
nterest C arged on oan . 0 Ca italised Com o ndedine Fee Pa ment Mont l Paid in rrearsoan Ratio Calc lation mmar Re ort ased on of Pro ect Costs net of nterest/Fees and .
C18040 Feasibility Testing 3-5 Carrington Road & 3 Myrtle Street Marrickville Feasibility Testing 7 of 8
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C18040 Feasibility Testing 3-5 Carrington Road & 3 Myrtle Street Marrickville Feasibility Testing 8 of 8
Oliver McGeachieCityState PropertyLevel 32200 George StreetSYDNEY NSW 2000
Dear Oliver
Indicative Apartment Pricing – Sydney’s Inner West & Surrounding Suburbs
We have recently undertaken an analysis for several clients on completed and near completedresidential developments for projects up to a maximum of 8 storeys incorporating basementcarparks.
Construction price ranges per apartment have been from $310k to $370k per apartment.However, the projects that formed part of the analysis had Preliminaries from 14% - 16% withour most recent commencing projects having Preliminaries increase to 22% - 26% for the samestyle of projects.
Noting this increase, it would be prudent to allow an additional 8% - 12% for this increasingtrend.
We would therefore recommend a mid range price of the adjusted range of $310k to $370k toarrive at a price per apartment of say $335k to $415k. Also note that an additional allowance ofapproximately $5k to $7.5k per apartment would be required in order to satisfy fire servicesrequirements where buildings exceed the BCA height requirements (approximately 8 storeys)for fire sprinklers.
If you should wish to discuss this matter further, please contact Peter Hammond or CraigWilliams of this office.
Yours faithfully
Napier & Blakeley Pty LtdENCL
3-5 Carrington Road, Marrickville Page 230 August 2017File Ref: 2204072210/CW-Apts-R1
Report Parameters
This report is the opinion of Napier & Blakeley Pty Ltd ACN 006 386 278 atf Napier & Blakeley Unit TrustABN 87 601 474 307 (Napier & Blakeley) and is to be read together with and is subject to the term andconditions of our engagement. Our opinions in this report are based on the information referred to in thisreport that has been made available to us by or on behalf of the addressee (Information).
Napier & Blakeley has not obtained independent verification of the Information. As such, our opinion maybe different if the Information is incorrect or inaccurate in any way. This report was prepared solely for theaddressee and its use is limited to the purpose for which it was provided. No third party may rely on thisreport without first obtaining the prior written consent of Napier & Blakeley.
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