A Queensland client of ours had an eye for a great opportunity, having secured 20,000sqm of land in a ‘neighbourhood growth zoning’ corridor that allowed for high-density development.
One big problem, though.
Having started the design process, the client realised the council’s koala and flooding concerns would limit the number of townhouses they could build. This would impact the project’s viability, as it would no longer be as profitable as the client had originally calculated before they bought the site.
Thankfully, the client had already been in touch with us to work on an early-stage development feasibility analysis. By workshopping different scenarios, we quickly saw the solution to the client’s problems: buy the neighbouring plot of land. This would take the project’s potential yield from 55 to 90 townhouses, while addressing the council’s planning concerns.
The next challenge was securing funding for the neighbouring land, as the lender would need to be comfortable with the planning risks. CPC introduced our client to a non-bank lender that recognised the project’s potential. So the lender was keen to do business.