Site and scheme
1,200 m² lot in Waterloo, R3 zoning, FSR 2.4. Allowable GFA ~2,880 m². Scheme: 6 residential levels over a single basement, 28 apartments, 22 car spaces.
Revenue
Pricing based on March 2026 comparable sales for the Waterloo / Alexandria submarket: 1-bed $720k, 2-bed $1.05M, 3-bed $1.48M, car space $65k. GRV $28.59M, net realisation $26.2M after 2.0% selling costs and GST.
Costs
- Land: $7.2M (acquisition only — stamp duty separate)
- Construction: $12.18M ($4,200/m² × 2,900 m² GFA)
- Professional fees: $0.97M (8% of construction)
- Statutory contributions and authority fees: $1.15M
- Finance costs: $1.42M
- Marketing and selling: $0.58M
- Contingency: $0.61M (5% of construction)
TDC $24.11M.
Finance structure
$5M developer equity, $17M senior construction facility (LTC 70.5%, LTV 59.5%) at 8.5% all-in. Equity drawn first, debt drawn against monthly progress claims, settled down on dwelling settlements.
Result
Profit on cost 8.7%, well below the 18–22% hurdle expected for a build-to-sell apartment project of this scale. The scheme either needs sharper pricing, lower build cost, or a different scheme size before it goes to IC.
What changes if pricing lifts 8%?
A second scenario at 8% higher pricing (2-bed at $1.13M instead of $1.05M) lifts net realisation to $28.3M. Profit on cost climbs to 17.4% — almost at the hurdle. A third scenario combining the higher pricing with a 5% reduction in construction rate (e.g. simpler facade) clears 22%.