4. DETAILS OF THE DEVELOPMENT 4.1
Overview
The Development consists of the development and construction
designed and built apartment in an area with high capital growth potential given the positive property fundamentals in Mackay. Driftwood is the ideal location for home ownership, long-term Investors not only the security of long-term rental tenure but also the potential for higher rental income from short-term serviced apartment leasing.
The site is located in the Northern Beaches region of Mackay, North QLD. Mackay is located approximately 1,000 kilometres North of Brisbane and 400 kilometres South of Townsville. Mackay LGA has a population of approximately 120,000, with a population of around 170,000 in the Mackay region. Mackay is considered to be a market exhibiting positive demographic, economic and residential property market fundamentals with a diverse, growing and robust economy and a population that is growing substantially faster than the national average.
PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER
39
4 4.2
Development Approval
The development approval required for the Development Approval). The Development Approval was endorsed by court order in the Planning and Environment Court of Queensland on 10 October 2012. Importantly, this materially reduces the risk associated with town planning, meaning that the expected time to completion of the Development following acquisition of months). In summary, the Development Approval can be described as follows: Site Area: 5,936 sqm 3 distinct buildings
apartments and 51 x 2 bedroom apartments)
4.3
Location
Driftwood is located in the suburb of Blacks Beach, which is one of the nicest northern beaches of Mackay.
Te a
nn
ke St
Beth St
Blacks Bea
Bon d
Blacks Bea
ch Rd
i Rd U lladu
l l a St
Whitehaven Dr
Cc t
Black Beach Reserve
Tce
wp
o r t Pd e
d
40
FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND
Wy
ir arb Fri Dr fic P
ac i
a rell Co
Ne
e
Mi am i Tc e
m Bo bo C t Co og ee
Newpo rt Pd
Whitehave n Dr
Scarborough Cct
Montgom ery St
Duranb ah
Pitt St
St
Dr
Coffe La
Trinity Pde
GREAT BARRIER REEF Pl
Coral
Elgans Pde
le Turt
ch Rd
Capri St
Blue Pacific Resort
Dr Pacific
Cordia St
Esplanade
Bour
r gh D ana Cav
Slater Av
r Barb er D
Florence St
Su
e Slat r Av
pink s Ct
Dr McLaughlin
Danastas Av
Dr
B u s u ttin
Mul
Poole St
Eimeo Rd
a Rd casi y-Bu Macka
J asmine
Dr
Barber Park
St rke Bou
or
Ma cka y-B uc a sia Rd
ade
St
Blacks Bea
ch Rd
Blacks Beach Park
ise Pl nr
Narrabee n
Mo nt go m er y St Son a n St
largest centre apart from Townsville. Due to the strong
d Dr
Rd
a
Su n s
be
eo
Eim
th
McAlar yD
Rd
l Eu
Old
Bo
S
Ct
r ti e Av
m
Ei
rd
r
eo
r in D B u s utt
Rd
St
Laughlin D r Mc
m
Ei
eo
Camilleri
Esplan
chay Cr
Salmon Av
fo
r ds D
government, light and heavy industrial sector, resurgence in agribusiness, mining services, growth in business tourism and an emerging marine sector. Mackay hosts much of the engineering, manufacturing and mining services industries supporting the regional economy in Central North Queensland. Mackay is
St
Ian Woo
Woodlan
Admiral Dr
Camilleri
s Co
Looking to the future, robust growth is forecast for Mackay, with a projected regional population forecast to grow to between 200,000 and 300,000 people within 20 years (Australian Bureau of Statistics). This regional growth is driven by a diverse range of economic drivers such as
aC t
eeker Ct
Eim
eo
Rd
The Development is located in close proximity to Mackay. Mackay is one of the fastest growing regions in Australia, with a population at June 2010 of 118,842 and
Av
Unique location Absolute beachfront location adjoining Blacks Beach and views over Barrier Reef islands Site orientation, allowing many of the apartments to enjoy Northern or beach front aspects Development Approval is in very scarce supply (limited apartment competition in Mackay or Blacks Beach) Shortage of residential accommodation in Mackay region Dual residential and tourism zoning, which enables both permanent occupancy and short-term serviced accommodation The Development Approval is considered ideal for current market conditions (i.e. well designed and appointed 1 and 2 bedroom apartments investor market)
PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER
41
4 4.4
Funding the Development
It is the intention of the Investment Manager that the costs and expenses associated with the acquisition of the Property and
3.
The balance of the costs of funding the Development sourced from a Senior Lender to the Development.
1.
Please refer to Section 6 regarding the anticipated construction costs for the Development, the sources of funding and the forecast costs and expenses associated with the Development.
and if required, partial debt funding; 2.
Partial funding of the Development from funds raised
Development Timeframe
4.5
Development Timeframe 30 months 3 months Investment Offer
9 months
Pre-sales (pre-construction) Pre-sales (during construction) Design to D&C Stage Procurement of D&C Contractor
12 months 3 months 2 months 4 months
Obtain Finance Construction Period Strata Titling and Settlement Overall Project
42
FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND
18 months 3 months
4 4.6
Development Consultants
The Development Manager and/or its related entity have appointed several consultants to provide services for the Development. The consultants have provided the Development Manager with the following advice in connection with the Development: AG Architects have advised that the design depicted in the drawings produced to date have, to the best of their belief and knowledge, been carried out in order to satisfy the requirements of NCC 2011, Queensland Development Code and other relevant design standards. AG Architects are of the opinion that the design accords with good industry practice and demonstrates a high level of architectural merit. RPS Australia East Pty Ltd have been appointed by the Development Manager to provide town planning services in
their advice provided complies with the provisions of the Mackay City Planning Scheme and relevant State Planning Policies and legislation, and is in accordance with current good practice. RPS have also been appointed as consulting surveyors and been engaged to prepare draft survey plans for inclusion in sales contracts. RPS have advised that they are a competent consulting surveyor and are accredited with the Department of Natural Resources to endorse survey plans prior to
BRW Enterprises (QLD) Pty Ltd has been appointed by the Development Manager to complete hydraulic services design and documentation for the Development. BRW Enterprises hydraulic services complies with Australian Standards AS/ J1-8), Queensland Development Code section 4.1 and 4.3, Australian Standard AS/NZS 2419 and AS/NZS 2118. Building Services Integration Pty Ltd has been appointed as mechanical and electrical engineering consultant for electrical and mechanical services is in accordance with the BCA/NCC 2011, Australian Standards and Queensland Development Code. BSI have advised that the designs are coordinated to a preliminary level as appropriate for a design and construct level, and that the design is in line with current good practice guides and industry standards. Bornhorst + Ward Pty Ltd have been appointed to provide structural and civil engineering concept design, DA reports and tender documentation for a D&C tender. They have complies with the BCA and relevant Australian Standards and codes of practice, and that their design complies with current good practice.
with current good practice and the title requirements of the Department of Natural Resources and associated surveying and mapping legislation.
site photo.43 PRODUCT DISCLOSURE STATEMENT – DRIFTWOODActual OFFER
4 4.7
Apartment Dimensions
The Apartment dimension details for the Apartments comprised in the Development are summarised below:
Apt No.
44
Lot No.
Aspect
Internal Floor Area
External Floor Area
Total Private Area
No. of Beds
No. of Baths
Spaces
1.1.1
1
NW
70
11
81
2
2
1
1.1.2
2
NW
52
16
68
1
1
1
1.1.3
3
NE
74
14
88
2
2
1
1.1.4
4
NE
69
23
92
2
2
1
1.1.5
5
NE
74
14
88
2
2
1
1.1.6
6
SE
58
18
76
1.5
1
1
1.1.7
7
SE
70
11
81
2
2
1
1.2.1
8
NW
70
11
81
2
2
1
1.2.2
9
NW
52
16
68
1
1
1
1.2.3
10
NE
74
14
88
2
2
1
1.2.4
11
NE
69
23
92
2
2
1
1.2.5
12
NE
74
14
88
2
2
1
1.2.6
13
SE
58
18
76
1.5
1
1
1.2.7
14
SE
70
11
81
2
2
1
1.3.1
15
NW
70
11
81
2
2
1
1.3.2
16
NW
52
16
68
1
1
1
1.3.3
17
NE
74
14
88
2
2
1
1.3.4
18
NE
69
23
92
2
2
1
1.3.5
19
NE
74
14
88
2
2
1
1.3.6
20
SE
58
18
76
1.5
1
1
1.3.7
21
SE
70
11
81
2
2
1
FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND
4 Apt No.
Lot No.
Aspect
Internal Floor Area
External Floor Area
Total Private Area
No. of Beds
No. of Baths
Spaces
2.1.1
22
NW
70
11
81
2
2
1
2.1.2
23
NW
52
16
68
1
1
1
2.1.3
24
NE
74
14
88
2
2
1
2.1.4
25
NE
69
23
92
2
2
1
2.1.5
26
NE
74
14
88
2
2
1
2.1.6
27
SE
58
18
76
1.5
1
1
2.1.7
28
SE
70
11
81
2
2
1
2.2.1
29
NW
70
11
81
2
2
1
2.2.2
30
NW
52
16
68
1
1
1
2.2.3
31
NE
74
14
88
2
2
1
2.2.4
32
NE
69
23
92
2
2
1
2.2.5
33
NE
74
14
88
2
2
1
2.2.6
34
SE
58
18
76
1.5
1
1
2.2.7
35
SE
70
11
81
2
2
1
2.3.1
36
NW
70
11
81
2
2
1
2.3.2
37
NW
52
16
68
1
1
1
2.3.3
38
NE
74
14
88
2
2
1
2.3.4
39
NE
69
23
92
2
2
1
2.3.5
40
NE
74
14
88
2
2
1
2.3.6
41
SE
58
18
76
1.5
1
1
2.3.7
42
SE
70
11
81
2
2
1
2.4.1
43
NE
74
14
88
2
2
1
2.4.2
44
NE
69
23
92
2
2
1
2.4.3
45
NE
74
14
88
2
2
1
PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER
45
4 Apt No.
46
Lot No.
Aspect
Internal Floor Area
External Floor Area
Total Private Area
No. of Beds
No. of Baths
Spaces
3.1.1
46
NW
70
11
81
2
2
1
3.1.2
47
NW
52
16
68
1
1
1
3.1.3
48
NE
74
14
88
2
2
1
3.1.4
49
NE
69
23
92
2
2
1
3.1.5
50
NE
74
14
88
2
2
1
3.1.6
51
SE
58
18
76
1.5
1
1
3.1.7
52
SE
70
11
81
2
2
1
3.2.1
53
NW
70
11
81
2
2
1
3.2.2
54
NW
52
16
68
1
1
1
3.2.3
55
NE
74
14
88
2
2
1
3.2.4
56
NE
69
23
92
2
2
1
3.2.5
57
NE
74
14
88
2
2
1
3.2.6
58
SE
58
18
76
1.5
1
1
3.2.7
59
SE
70
11
81
2
2
1
3.3.1
60
NW
70
11
81
2
2
1
3.3.2
61
NW
52
16
68
1
1
1
3.3.3
62
NE
74
14
88
2
2
1
3.3.4
63
NE
69
23
92
2
2
1
3.3.5
64
NE
74
14
88
2
2
1
3.3.6
65
SE
58
18
76
1.5
1
1
3.3.7
66
SE
70
11
81
2
2
1
3.4.1
67
NE
74
14
88
2
2
1
3.4.2
68
NE
69
23
92
2
2
1
3.4.3
69
NE
74
14
88
2
2
1
FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND
4 4.8
Typical Floor Plans
Acacia Apartments
Eucalypt Apartments
Melaleuca Apartments
2 x Bedroom type A Internal = 70 sqm Balcony = 11 sqm
1 x Bedroom type D Internal = 52 sqm Balcony = 16 sqm
2 x Bedroom type B Internal = 74 sqm Balcony = 14 sqm
A
D
B C
A
E
B
Acacia Apartments
Gardenia Apartments
Melaleuca Apartments
Banksia Apartments
2 x Bedroom type A Internal = 70 sqm Balcony = 11 sqm
1 x Bedroom type E Internal = 58 sqm Balcony = 18 sqm
2 x Bedroom type B Internal = 74 sqm Balcony = 14 sqm
2 x Bedroom type C Internal = 69 sqm Balcony = 23 sqm
PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER
47