All Topics / Commercial Property / Commercial Project Feaso

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  • Profile photo of jamesbasejamesbase
    Participant
    @jamesbase
    Join Date: 2020
    Post Count: 1

    Hello,

    I am running the numbers on a project which I have been putting together and wanted to gain a better understanding of how I could fund it. The basic fundamentals are below. I have the ability to secure an option over the land, DA is approved and the tenant is willing to sign a lease prior to settlement. Any thoughts would be greatly appreciated.

    Commercial Feaso.
    1 Land/ Property $1,050,000
    2 Stamp Duty $50,000
    3 Build Cost $3,370,000
    4 Legals, admin and consultancy (10% of build) $337,000
    5 Contingency on build (10%) $370,700
    6 PM Services (12 months @10K/pm) $120,000
    7 Total $5,297,700
    Lending Circumstances
    7 Borrow 70% of end product $5,250,000
    8 [email protected]% $210,000.00
    Income
    11 Total Income $450,000

    Equity Required
    12 Equity $47,700

    Nett Business Evaluation
    13 Valuation @ 6% Yield $7,500,000
    14 DDT Loan -$5,250,000
    15 Equity -$47,700
    16 DDT agent fee’s 1.7% -$135,000
    17 DDT Interest for 1.5 years -$315,000
    17 Profit $2,067,300
    18 DDT GST -$220,230
    19 Revised Total Profit $2,287,530

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    Your assumption of equity required of $47k is far shy of the normal requirement of 30% for commercial property. 

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