NSW Land and Housing Corporation (LAHC) is responsible for the NSW Government’s social housing portfolio. LAHC identified a site in Port Macquarie that was underutilised and sought to understand the potential development or divestment (to recycle capital) options of this site.
The site consisted of 12 lots, 11 of which were contiguous, with a site area of approximately 6,673 square metres. LAHC resolved to undertake an options analysis of the site and to complete a registration of interest (ROI) process to test market demand from both developers, investors, and community housing providers (CHP).
The challenge
KPMG was engaged by LAHC as a transaction manager to complete an options analysis of the site to determine the types of potential buyers/developers for the site, and to support an ROI process.
Following the completion of market research and completion of the options analysis for the site, KPMG identified the most likely buyers for the property, being either CHPs or small-medium private developers.
KPMG subsequently proceeded to support the ROI process, including to help refine the ROI content in conjunction with the LAHC team, to drive the design of the ROI document, and managed respondent questions and responses during the ROI period.
Our approach
LAHC and KPMG formed a small project team to successfully deliver this phase of an important project.
KPMG’s role included:
- Market depth analysis including comparative site analysis
- Social housing concentration analysis
- Highest and best use review
- ROI documentation input and drafting
- Supported the ROI, including managing respondent Q&A
- Options analysis with key findings
- Project management and coordination
What we delivered
KPMG was responsible for completing an options analysis for the site that considered a range of factors, including understanding the site, the site context, and the market depth and the key market participants across a range of property sub-sectors.
From this research, and having regard for the LAHC objectives for the site and region, we developed a decision tree outlining the options for the site which included an outright sale of the land, or partnering with a developer or CHP to develop the land.
KPMG was also responsible for providing input into and drafting an ROI document with returnable schedules.
Using the research from the options analysis, we were able to customise the ROI and returnable schedules to create a fit for purpose document that was appropriate for both the LAHC objectives and for the target market in Port Macquarie.
KPMG remained as the contact point during the ROI process and provided regular status updates to LAHC including feedback received from respondents. KPMG actively engaged with a broad range of market participants to help promote the ROI.
Following closure of the ROI, KPMG collated responses and provided LAHC with a summary of the ROI responses, with key findings.
KPMG successfully supported the ROI process which resulted in an above-expected number of responses. Applicant types were consistent with the guidance KPMG had provided during the options analysis given LAHC confidence on the transaction pathway and the market interest in responding to the Project opportunity.
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