Site Selection

Quantum's ability to mitigate risk on apartment projects is paramount to the success of each QREAL investment.

The QREAL program involves the following selection process of each approved QREAL Project.


Attribute

Reason its importance

Activity

Apartment
Site Selection
Correct identification of site locations will help underpin the capital growth potential of the investment and ensure higher levels of occupancy. Consideration is given to;
  1. Supply to the area
  2. Adjoining site development opportunity
  3. Market demographics
  4. Infrastructure
  5. Retail amenity
  6. Product type and mix
  7. Rental market assessment
  8. Marketing strategy
  9. Independent market research report to support the investment into the area
  10. Sales trends and prices
Feasibility Financial success of every investment is paramount. QREAL provides a unique investment opportunity for clients which is dependent on the financial performance of the project. Extensive financial modelling is undertaking, including sensitivity analysis and stress testing to the model. Prior to final investment, the project will be supported by independent agreement for works, including:
  1. Consultants,
  2. Fixed price build contract,
  3. QS verification of costs,
  4. Valuation,
  5. Marketing strategy and program,
  6. Sales price verification form independent sales agents.
Financing Without finance no project will commence. A creditable track record in development is crucial to gaining bank approval. The Builders track record is equally important. QREAL JV partners must have a history in successful developments. Reference checks are undertaken from tradespeople and financiers, site inspections of past projects for quality control are carried out, financial strength is assessed and resourcing ability is checked.
Securing a Builder Once the developer passes possession of the site to the builder, they assume all responsibility and risk for the project's success. It is imperative that the builder be capable of completing the project. Their building license is checked for any blemishes. Reference checks are undertaken from tradespeople and financiers, site inspections of past projects for quality control are carried out, financial strength is assessed and resourcing ability is checked.
Build contracts are agreed on a fixed price low/no variation basis.
Project Management The financial performance of the project is dependent on the projects ability to be built on time and to budget, constant monitoring of this throughout the project is crucial. Engaged and independent project manager to drive and monitor the projects performance. Monthly project control meetings will be held to ensure the project is on time and on budget. Monthly QS reports will be obtained to ensure works are completed to budget and only completed works are paid for each month.
Settlement Project returns can only be realised on upon the settlement of apartment sales. All sales must be secured with 10% deposits.
Quarterly newsletters are issued to all purchasers to keep them up to date on the projects progress and likely settlement time.
About 2 months out from settlement all purchasers are notified of the upcoming settlement and asked to finalise their mortgage requirements.
The strata plan will be lodged well before practical completion to ensure that occupancy can be offered immediately on settlement.

Investors must read the PDS before investing in the Trust.

The PDS will provide a clearer and in greater detail the level of due diligence undertaken by Quantum in the site selection process.