March 2022 — projects in review
Here are a couple of the projects we’re reviewing right now for project finance.
Adelaide, SA — 6 townhouse development
Key details:
- Total loan amount — $1.8m
- Target income return* — 7% p.a.
- Security — first mortgage
- Loan term — up to 15 months
Strategy and vision
This project is to construct six townhouses in the Adelaide suburb of Plympton. This project consists of two stages - demolition and construction. Completion of the project is set to be 13 months from first drawdown.
Situated only 15 minutes away from the city, and close to the beach (about 10 mins to Glenelg), Plympton is perfectly positioned. Featuring a number of quality schools in the local area, as well as day care and child care centres, the area has seen a significant increase in interest from young families looking to move into the area. With the Anzac Highway running through the suburb, going from the bay to the city, public transport is also easily accessible for commuters.
The fundraise for phase one is for $650,000 to be completed in April 2022. Phase two — the construction phase — a raise of $1,150,000, will be staged over the remainder of the loan term.
The borrower and project team
This developer has been heavily involved in property and construction for more than a decade. He currently owns and operates his own construction company, as he has done for over 10 years. This developer has an extensive understanding of what is required of a development such as this, having completed his own developments whilst simultaneously managing many other projects.
Melbourne, VIC — 2 x 6 bedroom co-living rooming house
Key details:
- Total loan amount — $1.7m
- Target income return* — 7% p.a.
- Security — first mortgage
- Loan term — up to 18 months
Strategy and vision
This project is to build two six-room co-living rooming houses in Melbourne’s Glenroy suburb. It has two stages — land acquisition (already completed) and construction. Completion of the project is set to be 15 months from settlement.
The project is situated in Glenroy, VIC, 13km north of Melbourne’s CBD. Very close to amenities, train, and employment hubs, it’s designed to fill a demand in the growing ‘couples tenant’ market.
The development will be finished as ‘turn-key’, complete with fully furnished rooms including kitchenette and ensuite. As rooming houses, they also feature common kitchen and living areas, and an onsite laundry.
The borrower and project team
Cheryl Leong | Sahara Madhi | Matthew White
Massive Impact Co. was formed to provide safe, affordable housing for the community as well as give the everyday investor access to high cash flow investments. Sahara and Matthew are known as Melbourne’s rooming house experts having completed over 100 rooming house projects. They also own nine rooming houses and are licensed operators.
Cheryl is a developer and social entrepreneur that endeavours to combine purpose and profit to deliver projects that make a difference. Together they form a formidable team that is passionate, innovative and driven to deliver results and making a massive impact to others.
