The client had a property in a regional area with a high regional catchment capability due to its proximity to a military base.
Brief to Development Finance Partners:
Look at the current DA and do a full working feasibility on the soft and hard costs to develop as the client wanted to construct and keep for the return via leasing income.
What was discovered:
That due to the properties location, the Project Director informed the client that they may realise a far better return by increasing the size of the site via Option Agreements with a view to DA for a blue chip tenant such as Woolworths to be prime tenant which would then anchor the tenancy and a further five(5) small tenancies offered.
The Project Director then ascertained the owners of the remaining land holdings, negotiated Option Agreements and terms. Then the key tenant was also engaged to enter into negotiations on a lease back option.
Funding was then arranged on the basis of the tenancy expressions of interest.
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