A three parcel deveopment opputunity consisting of;
Parcel 1 – 21.05 Hectares* (Mariners Cove Estate – development approval for 170 residential allotments)
Parcel 2 – 21.88 Hectares* (Beachfront Parcel)
Parcel 3 – 15.11 Hectares* (Beachfront Parcel)
A moderate level of enquiry was received throughout the campaign with hesitance from developers and speculators to engage in residential projects in regional locations. The vast majority of the market is seeking developments in SEQ areas.
Overwhelming feedback from the groups who reviewed the Mariners Cove development was the belief that the Hervey Bay market was very soft and there was little optimism that this would improve in the short to medium term. Soft market conditions and the difficulty to generate a base level rate of sale for the developed product is the main consideration.
Rate of sale has a direct effect on the ability to fund the development as well as escalating the input equity required to obtain funding. Most groups indicated that whilst the funding platform is vastly improved across the development market it is not the case for regional assets which are still very difficult to fund.
The highest offer received was from a SEQ based group on the development offering only (Parcel 1) at $2,100,000 which equates to $12,352 per lot. The site was placed under contract subject to Due Diligence but did not proceed to unconditional contact. The purchaser felt the combination of higher than average development costs and concerns about the rates of sale would not support this price.
|Method of Sale:||Expressions of Interest|
|Marketing Time Frame:||6 Weeks|
|Marketing Date:||September 2014|