Custom Projects
Stedone Projects, in conjunction with the various other companies in the group, is in a unique position to offer complete turnkey projects within Kwazulu Natal and surrounding areas. We are able to facilitate development of green field projects for end-user and/or investor clients.
Please feel free to contact James Arnott on the details below to discuss our potential participation in more detail:
Cell Number:
083 6258078
New Projects Guideline
Should you be a land owner who is willing to enter into a development relationship with Stedone, the following is a useful general guideline in terms of the initial feasibility study we would conduct with you.
Land Purchase
- Is the seller prepared to sign an option agreement or deferred payment agreement- subject to DFA, pre-sales etc?
- Is he a reliable candidate for a JV, in terms of contributing the land to the Development Company, with funds paid out of profit achieved on completion(at a higher return than a straight forward transaction), or would we prefer an outright purchase, based on a clearly defined Development risk profile and feasibility?
- Is the price applicable to the potential Development end sales value? (10% of project sales value is a fair price to pay)
Re-zoning Requirement
- Does the land need to be re-zoned?
- Does it fall into any specific Development zone and what is the current zoning classification for a possible development in this zone?
- Is there an opportunity for a re-classification, if required?
- Are there any fundamental risks in terms of being able to obtain the necessary services to the site?(water/sewer/electricity)
- Are there any other potential pitfalls to a possible DFA process(environmental/traffic sensitivities in particular)
- Are there any obvious de-moss/100 year flood line/ EIA potential issues that need a preliminary assessment?
Need & Desirability
- Is there an obvious quantitated need for the Development of the land?
- Who is the defined target market and where are they located?
- How do we create awareness for the project within this identified market and how much will it cost to reach them and obtain sales?
- What price are we able to charge, which is compelling & competitive?
Preliminary Feasability
- Based on a proposed Development plan, designed according to a need & desirability study, does the Development reach the required ROI hurdle rate? (40% GP for Greenfield’s Development and 25-30% for mini top structure Developments being less risk, hence less GP required and quicker turn around)
- Will the banks support the proposed layout/number of units/ROI?
Professional Team Appointment
- Who are the optimal professional team and what portion of upfront design work is able to be negotiated on risk?
Development Handover & Timeline
- What period is envisaged before we are able to hand over to the HOA/Body Corporate and move completely out of the Development?
- Is there a case for retaining units, in order to realise rental/lease income, along with capital growth?
