Property development is a risky business.

10% revenue drop compounded with 10% cost increase, would turn a potentially profitable project into lose.

The failure rate for Adelaide CBD apartment project is more than 70% (7 out of 10 project), even after the developer has received development approval.

With pre-sales at a level that is enough to cover 100% debt and interest and GST and selling cost, the bank will generally look for 25 to 30% profit margin. In terms of absolute profit figures, in the scale of a project like U2, the developer need to demonstrate that he can make approx $30 million, ...

The price of car stacker varies between $5,000 and $80,000 per car space. The types that were used in Palladium would probably cost $30,000 per space. Besides of car stacker, I think Palladium should not have the commercial on its lower levels. Instead of loading all these extra "risk factors&q...

I have a copy of their valuation report from JLL dated Dec 2015. U2 has been sending it out to a lot of finance broker, hoping to get a deal done.

U2 has not fudged their figures, they have sold more than 80%. Problem is, they have sold it for too cheap, the whole project is only making $110 million gross, after minus GST and sales commission and marketing cost, the developer only gets around $94 million. Their build cost is around $72 million...

New Mayfield is going to be another Palladium on Light. They have a debt of 25/26 million, while the land is only worth less than 10 mill. Unless they can find a way to separate the basement parking of stage 1 from the later stages, the build cost of the 1st stage alone is already more than $70 mill...

I am told that Hindmarsh is in the process of terminating their sales agreements with the buyers, Julianne Price and Inspire are trying to convert the buyers into buying The One, Kodo and Central Adelaide.

I thought the politicians in Australia are more clever than this, how can a MP allow himself to be dragged into a scam like this.... From what I have been told, U2 still doesn't have a builder and their bank valuation is a disaster. Their valuer thinks that their residual site value is close to zero.

Don't they require approval from the Adelaide City Council to carry out any demolition? When I search the development application tracking system of ACC, all I can see is an approval to setup a showroom.

This one goes before DAc this thurs with amendements. Increase in height to 57.5m and additional 2 levels of carparking above ground. No more basement car parking. Deletion of cinema and instead 1 more 1 bedroom apartment. The cinema and gym is moved to lower levels facing Grote Street, with the ca...

Developers consistently quote very low building cost in the development application, because this is what the application assessment fee base on. The real cost for this building including interest will exceed $70 million.

According to their marketing agent, Ironfish, 40% of their 200 apartments are sold in 2 weeks.

Without the additional car park, simply no customer will buy the apartments. That's not the issue. This isn't additional residents' parks, it seems to be an increase due to office space. Trust me, the parking are for the resident (all if not mainly). If you don't believe me, go to talk to the sales...

Without the additional car park, simply no customer will buy the apartments.

From yesterday's paper.