How it Works

OVERVIEW

Prospect 90 project manages the full development process of infill sites throughout Melbourne. The developments are predominately residential but may often include a small commercial component. Clients benefit from being guided by a professional team with industry hardened experience.

We have established a large network of contacts through dealing in the property industry for 30 years. We find suitable sites that meet or exceed our financial targets. The site selection (Location) is critical to the success of our projects.

REGISTERING

All interested investors need to register with Potter Developments. A confidential discussion will be held to determine your needs. Once assessed you will be given the opportunity to join a development unit trust that suits your profile. You will be given the choice to enter a trust independently or with other unit trust holders.

FINANCIALS

Most developments will have the following characteristics;

  • Gross realization between $3,000,000 and $20,000,000.
  • Development gearing caped @ 60% of Total Development Cost.
  • Equity from Prospect 90 of around 10%.
  • Contributions totalling around 40% to 60% from unit trust holders.
  • Commercial P&R returns.

The achieved returns from our projects are higher due to the commercial size achieved by pooling funds together.

STRUCTURE

The unit trusts will be start up entities, operating for the life of the project and then will be closed when the development is completed. All accounting and legal work will be carried out by external independent firms, with an audit on all accounts completed every 12 months.

Prospect 90 will act as project manager and derive a nominated percentage of the profits and a base retainer for accomplished stages of the development.

THE DEVELOPMENT PROCESS

A unit development with Prospect 90 will follow the following steps;

Stage One - Preliminary:

  • A suitable site will be found that meets the guidelines set out above.
  • Preliminary advice is obtained from an architectural firm as to how many units can fit on the site and the size and accommodation that would be possible.
  • A preliminary feasibility study will be prepared to show where the profits will come from.
  • A Town Planning report is prepared on the proposed development.
  • Building costs will come from a builder working from the preliminary sketch.
  • Then a feasibility study, including gross realisations, is obtained from a leading Valuation firm based on the proposed development.
  • The Land purchase is locked in.

Stage Two - Set Up:

  • The Unit Trust is set up.
  • A team is engaged that will provide a quality design, with strong market appeal that can be built efficiently.
  • All necessary planning, building and other permits will be sought and approval obtained.
  • Finance will be sought from a leading bank at market rates.
  • Presales will be sought for approximately 50% of the units utilizing our extensive network of agents and buyer’s agents.
  • Competitive bids will be obtained from experienced registered builders.
  • Building contracts will be drawn up and approved for commencement.
  • All legal work is carried out by experienced qualified solicitors.
  • All accounting work is undertaken by a CPA accountant.
  • All accounts are audited annually.
  • The planning and building plans are from experienced design professionals.
  • Colour schemes and materials are chosen by Interior Designers.
  • The gardens are designed by qualified Landscape Architects.

Stage Three - Project Underway:

  • The site will be set out by a Land Surveyor.
  • Each stage will be approved by a registered Building Surveyor.
  • Supervision of the works will be managed by Prospect 90 .
  • Cost overruns will be kept to a minimum by checking all documents prior to signing and by selecting builders with good track records.
  • Construction will be for a fixed period with built-in penalties for late completion.
  • Minor issues will be settled but major issues, along with a solution, will be advised to the unit holders.
  • Subdivision will be sought soon after lock up to allow for early settlements.
  • Upon completion and sale of all units the unit trust will have a final audit and be wound up once all accounts are paid.

If you would like to purchase a unit or invest register your interest

Register your interest
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