ABN: 77 617 895 306

Phone: 0413 005 525

Email: admin@goulburnprojects.com.au
www.goulburnprojects.com.au

PROJECT PROSPECTUS
“The Junction”
2-12 Pennant Hills Road, 1 Pacific Highway & 59 Russell
Avenue WAHROONGA NSW 2076

EXECUTIVE SUMMARY
Prospectus Date: 26th September 2022
Project: Construct 9 x 5 bedroom free standing houses to sell & sell the existing house
Timeframe: 23 months
Investor funds required: $2,700,208.00
Net profit: $4,160,410.00
ROI: 26.77%
 SITE BACKGROUND
The site is located at 2-12 Pennant Hills Road, 1 Pacific Highway & 59 Russell Avenue Wahroonga (aka "The
Junction") and contains 7 vacant land lots plus a lot with an existing house at 59 Russell Avenue. The site
has a gradual slope heading south south west to Russell Avenue.

- 2-
- 3-
The site is currently owned and being sold by Multiplex. The decision to sell due to being an R2 low density
zone and not yet becoming an R3 medium density zone or R4 high density zone and preferring to use the
funds on other projects. Located adjacent to an R3 medium density zone with potential to be rezoned over
the next 6 months or so, however not a requirement for our purposes. The site is currently leased to
Transport NSW where they have kept their equipment for upgrading North Connex and Pacific Highway
areas - they will be clearing the site in 2-3 months so it will be available to develop. See below images.

- 4-
Lots 8-14 were dedicated to Transport NSW for widening and adding a new lane for traffic along Pennant
Hills Road. The residual lots 1-7 are now accessed from Russell Avenue. See below image.

- 5-
 PROPOSED DEVELOPMENT
Boundary adjustments to resize existing lots to the minimum 500m2. Subdivision to create 2 additional
500m2 lots. New Cul-de-sac lane carriageway to access the lots and provide new services. Draft subdivision
concept design below as a guide.

Construct 9 new houses each 2 storey with 5 bedrooms, 3 bathrooms, double garage, multiple living areas
and outdoor entertaining around 249m2 each house. Sales appraisal from Ray White $2,200,000 at this
location being close to the main road. See images below for example of style. This property achieved a sale
price of $3,005,000 in July 2022 in a quieter street.

- 6-
- 7-
- 8-
- 9-
- 10 -
- 11 -
- 12 -
Sell existing house at 59 Russell Avenue. Ray White Sales appraisal $1,700,000 - $1,800,000. Images
below.

- 13 -
- 14 -
- 15 -
- 16 -
 SERVICES
Each existing lot is currently serviced with sewer, however will need to be extended to service new lots.
The water supply will need to be brought in via the new carriageway road as it is now under the new lane on
P H Road as per below image.

Given the slope south south west towards Russell Avenue, the hydraulic consultant will need to design the
stormwater flow path towards Russell Avenue south south west and install stormwater detention systems on
each lot for mutual / beneficial water quality. Image of contours below.

- 17 -
Ausgrid’s electricity services the site with the mains running along the south east boundary as per below
image. Will need to be extended to service new lots.

Other services currently on site to be adjusted include gas, nbn and Telstra as per below images.

- 18 -
- 19 -
- 20 -
 ISSUES / CONSTRAINTS
1 – 57 Russell Avenue has protected trees overhanging 6 & 8 Pennant Hills Road. Construction needs to be
at least 4 metres from root of trees or 2 metres from Silky Oak tree root. Overhanging areas can be cut back
to allow for 8.5m height for 2 storey house.

2 –1 Pacific Highway has a heritage item relating to the 75 year old palm trees. They need to be retained on
the lot or may be possible to transplant to another location on the lot subject to an Arborist’s report.

- 21 -
3 – 1 Pacific Highway has a small portion zoned SP2 Infrastructure along the boundary of the main road. The
area has a provision allowing further road widening if Transport NSW require this in the future. The affected
area is approx 12.52m2. Image below showing zoning of R2 in red and SP2 in yellow.

- 22 -
 TARGET MARKET
Wahroonga is an upgrader market with family households making up 81.5% of all household compositions.
People are mostly aged between 35-59 years old with children mostly aged between 5-19 years old.
Houses primarily have 4 or more bedrooms making up 54.6% of all households.
Number of registered motor vehicles per household is 2 being 42% of all households.
78% of houses are owner occupied.
17.8% of houses and owned by Investors.

*The above statistics have been extracted from the Australian Bureau of Statistics 2021 and 2016.

There are a number of top performing schools in the local area including Abbotsleigh, Barker and
Normanhurst Boys High School and Loreto Normanhurst.

There are a number of sports facilities, parks, shopping centres and entertainment venues including
Westfield Hornsby.

Transport infrastructure in the area provides flexibility including North Connex which connects Hornsby to
the M2 and M1 motorways, Pacific Highway, local trains via Wahroonga, Normanhurst and Hornsby stations,
buses at the corner of Pennant Hills Road and Russell Ave to Hornsby Station and Westfield.

The median price of houses sold in Wahroonga is currently $2,750,000. The sales range from a land value
price of $1,000,000 up to $14,500,000 for a prestigious luxurious high end 7 bedroom house with 6
bathrooms, tennis court, swimming pool, manicured gardens, all the bells and whistles on a large block in a
leafy street.

SUPPLY & DEMAND

12 month sales of houses to date is 243 and current listings of 23 houses resulting in a ratio of 1:10 in
favour of demand. This shows a huge shortage of houses available to buy and potential for buyers to bid
against each other to secure the purchase.

*The above figures have been extracted Corelogic’s database and realestate.com.au

- 23 -
 PRODUCT FIT & PRICING
Based on the above statistics there is strong evidence to support the demand for the construction and sales
of 5 bedroom houses or 4 bedrooms plus study with a double garage at the subject site.

Given the proposed development is located just off a main classified road and will be setback with a new
cul-de-sac lane to access the houses from Russell Avenue rather than from Pennant Hills Road, we have
adjusted the sales prices down to $2,200,000 in the feasibility. Setting a lower price provides a more
affordable entry point to the suburb with the point of difference being that the houses are brand new but
are located just off the main road. Starting the sales campaign at a price of around $2,600,000 -
$2,700,000 provides a $400,000 - $500,000 buffer to the lower sales price of $2,200,000 that could be
achieved and is still below the median price for the suburb. This is a best case scenario of an extra
$4,500,000 in sales. The worst case scenario still being a great outcome.

MARKET FORECAST
We are anticipating the housing market in Wahroonga will maintain a balanced outlook given the strong
demand for houses. As it is an upgrader market, the likelihood for purchasers to have equity available from
paying down their mortgages of their first homes over a number of years also provides a buffer against any
further market decline. We are also seeing evidence of a slowdown in declines of house prices across
Sydney as a whole which may result in a flattening out of house prices and potential for growth to resume
over the next 12 months or so as forces of inflation and interest rates lesson and stabilise buyer confidence.
We are also seeing evidence that units in Wahroonga may have moderate to strong growth over the next 3
to 5 years and will likely become a growth leader.

*This commentary contains evidence from a number of trusted sources including John Lindeman, Results
Mentoring and Propertyology, as well as our own analysis.

- 24 -