Connecting People, Process & Property

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1 Connecting People, Process & Property 2017

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3 What we can offer YOU What do you need to achieve for a successful development? Connecting People, Process and Property. SPS Group (QLD) Pty Ltd is a customer-centric business specialising in procuring and delivery of residential development projects across South-East Queensland. SPS provides its services via two (2) key areas Development Consultancy, and selected Project-Partnering opportunities. We are focused on and have evolved core competencies and expertise within each of the residential development markets. SPS offers developers, capital investors and the like, a range of traditional professional consultancy including Development Management and Quantity Surveying Services. SPS can assist Clients by managing the entire development process - from small to major residential projects or, Clients may choose selected / isolated tasks to be performed. Having over 30 years of experience in the property and building construction industries, SPS is able to offer the full suite of professional services on a consulting fee-for-service basis. Alternatively, and where appropriate, SPS can partner with selected developers and/or investors in projects for mutual benefit. In this instance, SPS can manage the entire development process; taking on a more project-partnering role - providing human resources / services as well as to assist in raising capital to ensure maximum profit at minimal risk. This partnering approach is referred to as our Partners-in-Property program and embraces all Development Management Services and Quantity Surveying Services in a seamless, solutionsbased offer. Under this project-partnering approach, SPS is incentivised to enhance project returns and reduce risk for the benefit of all stakeholders. For either level of involvement, SPS aims to successfully deliver projects on one or all aspects of the development process reflecting the long-term values of the SPS brand. At our core, we believe that successful projects have their origin in a collaborative, proactive and solutions-based, team approach.

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5 Pre-Development Consulting Services Site Procurement SPS actively seeks suitable, low-risk and profitable residential development sites on behalf of its Clients. Having a strong network of land providers and sound knowledge of feasibility analysis, SPS is able to source good quality sites for development. Pre-Purchase Due Diligence Fundamental to SPS s offer is its competencies in identifying risk prior to undertaking a development. Pre-Purchase Due Diligence incorporates the unveiling of potential items of risk, including but not limited to Town Planning Risk; Construction Risk; Finance Risk; Market Risk, or others as may apply. SPS provides an analysis of that risk in context to a project s likely return. Feasibility Analysis / Modelling Preparing a detailed financial feasibility for a project is the cornerstone of its success and as such results in risk mitigation. SPS carries out staged feasibility analysis for each potential opportunity outlining the likely project costs, revenues as well as the forecast financial returns. The measurements of risk (and reward) are considered in terms of the capital employed and a project s likely duration. Research Analysis SPS is well versed in market research which is critical to its due diligence process in both preacquisition and post-acquisition phases of a development project. Where required, primary and secondary data is collected and analysed to assist the development of a project s marketing and overall delivery strategy. Consultant Engagement and Co-ordination Each of the above processes requires the assistance of numerous professional industry consultants working seamlessly as a team. SPS has hand-picked a range of consultants from our many years of experience. The team that SPS assembles for its projects appreciate the importance of risk mitigation; a collaborative value management process; as well as the need for obtaining competitive fee proposals all delivered in a timely manner. Appointing suitably experienced, professional consultants and subsequently managing them hereafter is critical to a project s success. SPS only recommends consultants who are suitably experienced, cost competitive, well-respected within the industry, and those who share similar values to itself. Risk Mitigation Development attracts a high level of risk. In order to mitigate that risk, SPS identifies the likely areas of the same (both cost and revenue), and more importantly develops and puts into place appropriate strategies to deal with that risk.

6 Pre-Development Consulting Services Initial Marketing Strategy Fundamental to successful project delivery is developing a thoughtful, relevant and costeffective marketing strategy. Purposeful marketing involves identifying, understanding and delivering on all target buyer demands and expectations; evolving the product to meet those demands; understanding the competitive landscape; communicating the message to the target audience, and for managing that interaction. Good independent market research must underpin marketing strategy and sets the foundation for the final product offer. In turn, marketing strategy precedes and drives the sales process well before any construction works are scheduled to commence on site. A sales campaign without a sound marketing strategy will yield limited results, adversely impacting on a project s financial performance. SPS ensures all projects have a clearly identified target market; a definable positioning strategy; an efficient design (with a clear point of difference), together in unison with a definable communication and branding strategy - always consistent with the project s vision. Central to the SPS mantra, is a belief that each project should have a unique proposition one that does not allow comparison to other projects; one that therefore does not lead to competition merely on price alone. This process evolves from thoughtful value management. All sales and marketing mediums are considered by SPS from traditional print media to social media. Value Management Value Management is the process of ensuring that buyer expectations and buyer values are incorporated into a project s design and communication strategy as cost-efficiently as possible. It can be exhaustive process and typically involves the interaction with all major project consultants each sharing a common goal to maximise profit and reduce risk. Good value management practices allow for a balance between creativity and restraint always focused on achieving the project s common goal. Detailed Opportunity Identification and Strategy Where required, SPS would prepare a detailed Strategic Business and Marketing Plan for its client. This document sets out to measure likely profit performance and financial returns - uncovering the most likely projects risks; as well as developing an appropriate strategy to mitigate those risks. The Strategic Business and Marketing Plan is a site specific report that exposes all aspects of a proposed project.

7 Pre-Development Consulting Services Statutory Approvals Obtaining approvals has become increasing complex and time-demanding. The Development Approval (DA) process typically requires the interaction of several key, experienced consultants. SPS has access to all such consultants and ensures the timely and collaborative delivery of a DA, taking into account the value management process noted earlier. Similarly, obtaining a Building Approval (BA) requires the managed interface of selected consultants. Prior to obtaining these statutory Approvals, several other sub-approvals are also required, namely - Operational Works Approval, QUU Approvals, Plumbing Approvals, as well as Fire Approvals. The management of these additional approvals would be the responsibility of SPS. Cost Planning and Cost Management Cost Planning is the process of establishing a framework or budget of a project s construction costs typically the largest cost of a project. The preparation of this budget (or Cost Plan) should be carried out by an experienced Quantity Surveyor / Cost Manager. Cost Management is the process of ensuring the proposed Cost Plan is maintained throughout the life of the project. Mitigation strategies are implemented by the Quantity Surveyor to ensure over-runs are eliminated or, where unavoidable, managed to ensure the project s return is not too adversely impacted. In reality, the Cost Planning and Cost Management roles are inseparable.

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9 Partners in - Property Identify & Procure Joint Venture Opportunities Through its various networks, SPS can introduce and facilitate Joint Venture opportunities via existing partners to create new, financially viable development opportunities not possible otherwise. Sales Strategy, Disclosure Documents & Co-ordination SPS has a strong background in marketing and sales. As noted earlier, any effective marketing efforts must precede sales. Accordingly, the findings from the initial research and subsequent marketing strategy must be communicated to and implemented by an appropriate Sales Team. Capital Raising / Equity Co-ordination SPS can assist with raising equity to assist fund residential projects for its clients under the Partners-in-Property program. Capital raising is highly regulated by ASIC. Accordingly, all appropriate compliance requirements would be coordinated and carried out by a team of suitably qualified specialists known to, and trusted by SPS. Under the Partners-in-Property offer, SPS would take on this role to ensure the original marketing strategy is implemented as intended. By SPS being involved at the project s inception, implementing the marketing and sales strategy will help achieve maximum profit at minimal risk. Legal Structures & SPV Establishment SPS will assist in establishing the most appropriate legal structure(s) for its client / developer, partners and investors. Typically a Special Purpose Vehicle (SPV) is established on a project- byproject basis. SPS would also ensure all legally required disclosure documents, pre-sale contracts, body corporate establishment material, and the like, are correctly prepared. SPS would ensure all marketing sales collateral (marketing floor plans, specification and inclusion lists) are all prepared and made available to the sales team for the purposes of capitalising on any pre-completion sales contracts. The preparation and co-ordination of all site signage, information memorandums, price lists, and the like, are also services offered by SPS.

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11 Partners in - Property Body Corporate Co-ordination Ensuring a body corporate is established accurately, and in a timely manner, is critical to successfully delivering project. SPS can assist in this regard. Plan Sealing and Titles The timely preparation of documents for Plan Sealing and the subsequent issuing of Titles are paramount. To ensure pending sales settlements are not delayed, SPS would coordinate the preparation of all appropriate documents and lodgment of the same to the relevant authorities. GST Co-ordination Under the Partners-in-Property offer, SPS would work with its client to ensure all GST liabilities are properly managed. Project Reporting Reporting and transparency is key in the delivery of a successful project to business partners. SPS encourages its clients to have reports prepared on a regular basis reporting all time, cost construction quality, development profitability and risk items. Reports are typically made available on an end-of-month basis and are offered as part of the Partners-in Property program. Distribution of Profits, Closing of Entity As a project ends, SPS would produce a Final Account, and formally close-off the SPV entity, and distribute all equity and profits as required.

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13 Post-Development Consulting Services Insurance Replacement Cost Estimates (IRCE) The preparation of an Insurance Replacement Cost Estimate is a statutory requirement under the Body Corporate and Community Management Act (1997). The IRCE is a Report prepared by a suitably qualified Quantity Surveyor that typically assists the Body Corporate Manager (and Insurance Broker) obtain the necessary / adequate insurance coverage for Building Insurance purposes. Make Good Assessments (MGA) Most typically for commercial property owners, the preparation of a Make Good Assessment is critical. Simply put a Make Good Report is a form of dilapidation Report that quantifies the extent of damage or defects to a property at a particular point in time. A Make Good Report usually takes the form of an Entry Report or an Exit Report depending on when an assessment is required prior to commencement of a tenancy ( Entry ), or at the expiry of a tenancy ( Exit ). Sinking Fund Forecasts Cost Estimates (SFFCE) Like an IRCE Report, the preparation of Sinking Fund Forecasts Cost Estimate (SFFCE) is a statutory requirement. A SFFCE Reports sets out to forecast the likely expenditures / outlays that need to be set aside by the Body Corporate Manager to assist with budgeting process of Lot owners.

14 a Connecting People, Process & Property Contact the TEAM: Sebastian Muscolino - Director of SPS (Qld) Pty Ltd M: E: seb@synergypropertysolutions.com.au David Cox - Development Manager M: E: david@synergypropertysolutions.com.au Michael Cox - Project Manager & Superintendent M: E: michael@synergypropertysolutions.com.au Steve Purser - Facilitator, Strategy, Marketing & Design M: E: steve@synergypropertysolutions.com.au