[COM] 176-186 Morphett Street | 59m | 18lvls | Residential

[Reb-L]

I really hope this project will go ahead. It would put some life into a now very quiet area and also become a link between KWS and the emerging NW corner of the city. If the pricing is attractive I'm sure people will see what a great location this is despite its somewhat dilapidated appearance at the moment. This story also shows the benefits we can get by having international students here and making it easier for them to start a business in our city. Good news for a change (I wasn't too optimistic about this because it seemed to have come to a stop).

[ghs]

Sorry to sound negative but there was nothing promised in terms of the development going ahead
in that launch. Also why have they done a launch now when the project was first advertised and
marketted about 2 years ago.

[Uncle Monty]

The article states 'Demolition will start next month and construction in April, with the goal to be finished by the end of 2014.' This sounds pretty certain to me.

[mattblack]

The article states 'Demolition will start next month and construction in April, with the goal to be finished by the end of 2014.' This sounds pretty certain to me.

+ this small comment 'Vision recently passed $18 million in pre-sales, or 46 of the 157 apartments, which allowed the development to proceed'. This will look great in that loaction.

[[Shuz]]

Just for clarification - I thought that since post-GFC banks had become very stringent in their lending conditions and usually required at least 70-80% pre-commitment before a project was to proceed? 46/157 apartments is only 29% pre-committed. Or is this another development which is being fully financed by the developer itself, much like the guy (I forget his name) behind 70 Franklin, Coglin Place and 400KWS?

[Waewick]

Just for clarification - I thought that since post-GFC banks had become very stringent in their lending conditions and usually required at least 70-80% pre-commitment before a project was to proceed? 46/157 apartments is only 29% pre-committed. Or is this another development which is being fully financed by the developer itself, much like the guy (I forget his name) behind 70 Franklin, Coglin Place and 400KWS?

it really doesn't go by number of apartments sold, it is more aligned to the amount of debt that is covered by pre-sales.

i.e if they have achieved $18M in sales and only need $18M in debt then there is a good chance they would get it regardless of the amount of apartments actually sold (however this position would be unlikely in a normal situation)

[Norman]

I believe the 70% commitment refers more to office leases, not apartments

Sent from my RM-821_im_mea3_306 using Board Express

[Waewick]

I believe the 70% commitment refers more to office leases, not apartments

Sent from my RM-821_im_mea3_306 using Board Express

well that really depends what you are doing with the offices.

If you are going to sell them, them in reality it is all pretty much the same.

If you are developing with the view of turning it into an investment vehicle, then the office leasing component is going to be viewed on the buildings ability to service the debt.

[Ben]

Should see some site works soon

Type: Application Assessed on Merit
Application Number: DA/607/2010/1/B
Lodgement Date: 8/04/2013
Location: 176-186 Morphett Street, ADELAIDE SA 5000
Description: Demolish existing buildings and construct 16 level residential apartment building with ground floor retail and car parking at basement, ground and 1st level - 179 apartments - STAGE 1 - DEMOLITION

[Dvious]

Great News, Hopefully the building gets off the ground aswell.

Does anyone know what sales they are up to yet?

[Reb-L]

Great News, Hopefully the building gets off the ground aswell.

Does anyone know what sales they are up to yet?

Last week it was 40 apartments

[Shahkar]

Great News, Hopefully the building gets off the ground aswell.

Does anyone know what sales they are up to yet?

Last week it was 40 apartments

So they haven't sold a single apartment in more than two months?

[Reb-L]

Great News, Hopefully the building gets off the ground aswell.

Does anyone know what sales they are up to yet?

Last week it was 40 apartments

So they haven't sold a single apartment in more than two months?

I wouldn't jump to that conclusion - maybe their info is not being updated on a daily basis.

[Ben]

Looks like Watpac will be the construction company.

http://www.asx.com.au/asxpdf/20130321/p ... 5tk5nh.pdf

[mgb]

Yes Watpac are doing the work, and are due to start the 6th May.

46 apartments sold.