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OpenCorp is pleased to offer you the opportunity to invest in an exciting new development in Albion, Queensland; just 5km from the Brisbane CBD. This significant site accommodates 154 apartments across 2 stages in an established and vibrant suburb surrounded by other affluent Brisbane suburbs such as Ascot, Hamilton and Clayfield.
As you know, we have achieved exceptional sales results in two of our existing apartment developments, Evolve (Chermside, QLD) and Citro (West End/Brisbane, QLD). This strong result is a reflection of our strategy to acquire sites in markets which benefit from high levels of local amenity and historically consistent levels of demand. We believe that this latest opportunity in Albion is similarly located in a well serviced area with long term buyer demand.
The project has been conservatively modelled and achieves a 71.28% Total Return on Equity which equates to an Equity IRR of 25.21%.
The key highlights of the opportunity are:
Inner City suburb 5km from the CBD with good infrastructure
154 apartments over two stages (generous 1, 2 and 3 bedrooms) ranging from 50m2 to 113m2
Development Approval obtained and builders have already submitted preliminary tenders well within our construction allowance
Open spaces , pool and BBQ area including underground car parking for tenants
Land sale price of $11.65m / Sales revenue $80.9m (ex GST) / Construction cost of $39.7m (including 5% contingency)
$13.0m equity raising
24% of your total contribution required on application with the remaining 76% due on or before May 1st 2016
Expected IRR (compound annual return on equity) of 25.21% and ROE (return of equity) 71.28%
1stcapital/profit repayment in January 2018 within winding up of project in May 2019 (43 month project)
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