Key Investor Info - 'Deal Pipeline' for the Fund 

Conditionally Approved Loans - i.e. Deals Awaiting Funding Allocation:

Deal 1

Through its association with GPS the Fund has already been provided with a safe and secure construction financing deal with an existing client currently being funded via the GPS 'Select Fund'.

 

The deal proposed by GPS involves the provision of $3.461M of construction funding from the Fund to assist with the development of a proposed 32 x Residential Unit Development located in Lutwyche, QLD.  The advance from the Fund would be a joint loan in conjunction with an existing GPS Fund and the Fund would take a sub-ordinated first mortgage position behind the GPS Fund.

The details of the existing GPS loan, as currently held over the land are located at the following URL:

 

http://www.gpsinvest.com.au/data/uploads/pdf/15-norman-ave-pty-ltd-spds-issue-1.pdf

 

A 'draft' funding table has been prepared for the proposed loan by GPS. Click HERE to view a copy of this.

 

The key points of the construction financing proposal are as follows;

DEAL SYNOPSIS

 

Loan Type / Purpose:      

 

Security(s) Location:   

 

Security(s) Description

 

 

 

 

 

 

 

 

 

 

 

 

Proposed Loan Amount:         

 

 

 

Security Value - ‘As Is’ (Ex. GST)  

 

Refinance Debt (At Loan Settlement):

 

Value - On Completion (Ex. GST)

Value - On Completion (Inc. GST)

 

LVR Required: 

 

Interest:  

 

Est. Construction Timeframe

 

Proposed Loan Term: 

 

Est. Cost-to-Complete:

 

Existing Pre-Sales:

 

Map of Site Below:

 'NORMAN RISE'

 

Construction Loan – Medium Density Housing

 

11 - 17 Norman Avenue, Lutwyche, QLD

 

The proposed development, once completed will comprise:

 

  • 27 x two (2) bedroom, two (2) bathroom units (90m2 each);

  • 5 x three (3) bedroom, three (3) bathroom units (120m2 each);

  • 32 car parks and two (2) visitor spaces;

  • Roof terrace entertaining area;

  • Bike storage;

  • Security / Intercom; and

  • Quality design fixtures / finishes.

 

$9,869,200 - TOTAL

$6,408,200 - GPS

$3.461,000 - VSDMF (First In - Last Out)

 

$2,800,000

 

$1,075,000                               

 

$15,645,455                     

$14,463,636

 

68.2% (Gross Loan on Project GRV Ex GST)

 

Capitalised

 

6 Months 

 

12 Months  

 

$8,733,800 (Ex. GST)  

 

TBC

BACKGROUND

 

Character of Applicants


Company Directors, Derek Edgar and Graham Cooper, are repeat GPS borrowers who have undertaken three previous developments under the following names:

 

  • 34 Dry Dock Road Pty Ltd - 20 x units with borrowings of $3.4m – GPS funded;

 

  • 52 Dibar Pty Ltd - 6 x units with borrowings of $1.6m - GPS funded;

 

  • Living on Lees Pty Ltd - 40 x units with borrowings of $4.95m.

 

The Directors are well experienced, having completed similar type/sized projects in Brisbane and Northern NSW over the past seven (7) years.

 

Location

 

Location is on the corner of Perry Street and Norman Avenue, Lutwyche approx. 5km north of the Brisbane CBD. It is also 300m to the Lutwyche Bus Interchange and entrance to Lutwyche Shopping Centre, 100m to the Kedron Brook bikeway as well as being in close proximity to schools, recreational facilities and regional shopping centres.

 

Access is easy and direct off Norman Avenue which links directly with Lutwyche Road, a major arterial road leading to the Brisbane CBD and northern / southern suburbs. Surrounding developments comprise a mix of post war single residences of average and good quality, and a number of new unit developments throughout Lutwyche completed over the last 10 to 15 years.


The Borrower’s original intent was to construct 20 units on lots 24/25. However, after completion of major road works and the Lutwyche Bus Interchange, the adjoining site (Lot 26) was offered for sale by the QLD Government.

 

Preliminary discussions with Council indicated that under current zoning, acquisition of Lot 26 and amalgamation with Lots 24/25 would result in the creation of an additional 12 units (32 in total) within the amalgamated parcel.

 

Development Approval

 

An application for DA was lodged in April 2014, and approval is expected to take approximately 5-6 months.

 

The Borrower’s intention is to run the DA and BA applications concurrently to streamline timeframes.

Deal 2

Through its association with Clinton Smith the fund's Chairman, the Fund is looking at providing another safe and secure construction financing deal with an existing client who is currently pre-approved for construction finance via the GPS 'Select Fund'.

 

The deal proposed involves the provision of circa $8M in construction funding to assist with the development the first stage of two stage medium density residential development project. Stage 1 comprises; 23 x Residential Unit Development and a cafe/restaurant. The project is located in Labrador, (on the Gold Coast), QLD. 

 

The proposed advance would be a joint loan in conjunction with an existing GPS Fund and the Fund would take a sub-ordinated first mortgage position behind the GPS Fund. 

 

A 'draft' funding table has been prepared for the proposed joint loan by GPS and the Fund. Click HERE to view a copy of this.

 

The key points of the construction financing proposal are as follows;

DEAL SYNOPSIS

 

Loan Type / Purpose:      

 

Security(\(\(\(s) Location:   

 

 

Security(\(\(\(s) Description

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proposed Loan Amount:         

 

 

 

Security Value - ‘As Is’ (Ex. GST)  

 

Refinance Debt (At Loan Settlement):

 

Value - On Completion (Ex. GST)

Value - On Completion (Inc. GST)

Value - Stage 1 Commercial (ex. GST)

Value - Stage 2 Residual Land (Ex. GST)

 

Total Loan Security Value:

(At Completion of Stage 1)

 

LVR Required: 

 

Interest:  

 

Est. Construction Timeframe

 

Proposed Loan Term: 

 

Est. Cost-to-Complete:

 

Existing Pre-Sales:

 

Map of Site Below:

    'BROADWAY'

 

Construction Loan – Medium Density Housing

 

  1. 128 Frank Street, Labrador, QLD, 4214

  2. 24 Imperial Parade, Labrador, QLD, 4214  

 

The proposed development, seeks funding for Stage 1 of a 2 x stage (dual tower) medium density high-rise development.

 

Stage 1, to be built over 4 x levels comprises a total of 23 x units and a ground floor cafe / restaurant, the breakdown being as follows:  

 

  • 5 x two (2) bedroom, one (1) bathroom units;

  • 15 x two (2) bedroom, two (2) bathroom units;

  • 3 x three (3) bedroom, two (2) bathroom units;

  • 1 x level car park;

  • Roof terrace entertaining area;

  • 1 x Caretakers Residence;

  • Security / Intercom; and

  • Quality design fixtures / finishes.

 

$8,035,00 - TOTAL (preliminary estimate)

$4,973,400 - GPS

$3,062,000 - VSDMF (First In - Last Out)

 

$3,000,000

 

$1,400,000                               

 

$8,466,364

$9,188,000

$   350,000

$2,100,000                     

 

$10,916,364

 

 

73.6% (Gross Loan on Stage 1 GRV Ex GST)

 

Capitalised

 

12 Months 

 

18 Months  

 

$5,085,000 (Ex. GST)  

 

TBC - Preferred Project Manager to be Engaged

BACKGROUND

 

Background

 

In August 2003, the principal JV Partner corporation purchased  2 x adjacent properties at the Cnr of Frank Street and Imperial Parade, Labrador Qld.

 

Castell Holdings Pty Ltd is the sole owner of the property and sole director Gerald Thomas Smith formed a joint venture partnership with Broadway Developments Pty Ltd to develop the site.

 

The joint venture partners involved are Smith as lead partner, Ian Jenkinson (a now retired Qantas Airline Steward) and Architect Darryl Parker.

 

Character of Applicants

 

Company directors, Gerry Smith and Daryl Parker, are well experienced, having completed similar type/size projects on the Gold Coast Brisbane and Northern NSW over the past 20 (20) years. Gerry Smith is a longtime client of Clinton Smith the fund's Chairman.

 

Location

 

Location is on the corner of Frank Street and Imperial Drive Labrador approx. 8km north of the Surfers Paradise CBD. It is also 500m to the Grand Hotel and 3 km to Australia Fair Shopping Centre, at Southport. The site is located 1 block back from the Broadwater and the bulk of the development product will have good water views once completed.

 

Access is easy and direct off Frank Street which links directly with Smith Street or the Gold Coast Highway which both run directly into the M1 Motorway. Surrounding developments comprise a mix of circa 1970 built single residences of average and good quality, and a number of new unit developments throughout Southport, Labrador, Runaway Bay areas have been completed over the last 10 to 15 years.

 

Development Approval

 

The site originally had Development Approval for the construction of 48 x  l bedroom units of which 24 were presold in 2006 however this DA was amended to provide for a greater density development after the GFC.

 

A revised DA, upgrading the original yield from 48 units to 102 units was issued on the 21st November 2013.

 

The Borrower’s intention is to run the BA immediately once finance is approved.

 

Deal 3

Through its association with Viking Capital Group, the Fund is looking at providing another safe and secure construction financing deal with an existing client currently previously approved for construction finance via GPS' partner La Trobe Finance Services. La Trobe for operational reasons then declined the finance after the Applicant was issued with the Indicative Letter of Offer from GPS.

 

The deal proposed by GPS involves the provision of $16,182,000 of construction funding from the Fund to assist with the development of a proposed 32 x Residential Unit / Mixed Use Commercial Development located in Rosebud, Victoria. 

 

The proposed advance from the Fund would be for the entirety of the loan amount and GPS would manage the loan from start to finish. Please note there is currently around 60% debt coverage in place via pre-sales.  

 

The key points of the construction financing proposal are as follows;

DEAL SYNOPSIS

 

Loan Type / Purpose:      

 

Security(s) Location:   

 

 

Security(s) Description

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Proposed Loan Amount:         

 

Security Value - ‘As Is’ (Ex. GST)  

 

Refinance Debt (At Loan Settlement):

 

Value - On Completion (Ex. GST)

Value - On Completion (Inc. GST)

 

LVR Required: 

 

Interest:  

 

Est. Construction Timeframe

 

Proposed Loan Term: 

 

Est. Cost-to-Complete:

 

Existing Pre-Sales:

 

 

 

Map of Site Below:

'BANKSIA POINT'

 

Construction Loan – Med. Density Housing

 

  • 1A Jetty Road, Rosebud, VIC, 3939

  • 1B Jetty Road, Rosebud, VIC, 3939  

 

Proposed medium density residential / commercial (i.e. ‘mixed use’) development. According to the PP the project will comprise 34 x Apartments, with sizes range between 74 m2 and 150 m2, and 5 commercial properties, (commercial properties range in size from 100 m2 to 220 m2 and are on the lower level of the development), and configured as follows: 

 

  • 1 x 1 x Bedroom Unit,

  • 26 x 2 x Bedroom Units

  • 7 x 3 x Bedroom Units 

  • 3 x Cafés (Ground Level) 

  • 2 x Restaurants (Ground Level) 

  •  Associated basement car parking and;

  • Community facilities.

 

$16,182,000 (VSDMF)                                 

 

$6,000,000 (Ex. GST)

 

$2,340,000                                 

 

$27.304,028

$29,357,325 

 

62.2%

 

Capitalised

 

12 -15 Months

 

18 Months       

 

$12,800,700              

 

Circa $10.6M Inc. GST to Date

(Being Approx. 62% Debt Coverage of the Proposed Loan Facility)

BACKGROUND

 

Character of Applicants

 

The Applicant Director is an experienced businessman having had a career in running and managing public companies both in Australia and also in the US, however the Applicant will engage an experienced project manager to supervise the on-going development once the building phase commences.

 

To date the Applicant has only preliminary costing from QS provided from several reputable builders but cannot finalise costing or select a builder until working drawings are completed and the contract tendered. This will occur once the subject land is refinanced and loan amount increased, to provide funds to cover further preliminary costs as noted in the project costing.

 

Location

 

The subject site is located in the popular Mornington Peninsula town of Rosebud next to the Rosebud Pier. Whilst many developments claim to be in a ‘prime position’, Banksia Point actually lives up to this title. The development has direct access onto Rosebud foreshore with most of the apartments having bay views and all being a 20 metre walk to the pier. The Jetty Rd frontage has been designated as a pedestrian priority zone, and council will upgrade this area and the foreshore with a new Master plan for the foreshore with paving Jetty Rd, new car parking, toilets and playground being planned.

 

Development Approval

 

The Applicant has owned the subject land since 2007 and initially held DA for a 2 x level, 21 x apartment development however after helpful local planning changes allowing extra density the Applicant revised the original plans and thereafter Council supported the amended plans and approved a 3 x level development comprising 34 apartments, 2 x restaurants and 3 x café development.

 

Sales and Marketing

 

What the Applicant may lack in property development experience I feel he makes up for in initiative and practicality given his 40 odd years’ experience running international business organisations. After Ray White Rosebud got away to a very slow start in obtaining ‘Off-the-Plan’ sales for the development, he decided to use his skills and experience and sell the apartments direct, which has proved successful to date.

 

He subsequently converted the front house on the property to a display/sales office and has since August 2013 he has marketed on-site and made 13 individual sales to the value of circa $10M, with sales including a mix of commercial and retail units. To date Pre-Sales equate to approx. 61.3% total debt coverage against the proposed loan, with further sales opportunities still in the pipeline.

 

So far, to achieve the pre- sales a mere $30,000 has been required to fund marketing costs, and this is due to the low key personal approach together with the very visible location next to the beach, and of course saved real estate commission. As part of the sales campaign so far the Applicant has been rebating the 5% commissions to the purchasers due to the savings in direct sales and marketing costs.

GPS - Work-in-Progress

The GPS business currently has an immediate need for funds of circa $20M for its 4 x commercial lending opportunities, including the 2 deals listed below and plus both the Norman Street Pty Ltd and Broadway Developments Pty Ltd Deals.  GPS Is looking for at leasy $7M from the Fund to assist with the Norman Street and Broadway Developments deals and additionally, GPS will be looking for further funds for the Velocity Properties and Sage Apartment deals.

 

Further details on the additional 2 deals mentioned herein are noted below:

 

Deal 1 - Velocity Property, Hawthorne, QLD - Proposed $3.8668M advance - for more details on this funding proposal please click HERE 

 

Deal 2 - Sage Apartments, Merrimac, QLD - Proposed $6.727M advance - for more details on this funding proposal please click HERE 

Viking Capital Group - Work-in-Progress

The Viking Capital Group business currently has around $60M of commercial lending opportunities available for immediate and/or deferred approval which may suit the lending criteria of the Fund.

 

Click HERE to review a spreadsheet summary of these deals, their required loan amounts and locations as are currently proposed.