Edan on Oakes Investor Update

The project is progressing well and is on schedule with no major issues forecast.  Project profitability is under pressure due to higher then anticipated construction estimates. Schedule is under pressure due to delay in engaging architect for DA which has knocked schedule into xmas shutdown period.

Key achievements for period:

• Finalisation of all Design Documentation for DA and submission to council has occured. A three week public exhibition period is now in progress and will complete 1 Nov 2016.  Council review and assessment of plans will then occur , and is expected to take a further 3 weeks.
• Structural Engineer has been engaged to design footings and flooring. We expect to reduce construction costs by redesigning the construction approach for the ground and garage floors.
• A modeller has been engaged to provide 3D renders of Oakes Ave facade. This engagement may be extended to provide Milham Ave and interior renders to allow early marketing and presale of the properties.
• EIO of Builders received. Construction indicative estimates are 10-15% higher then budgeted. This is due to the custom design required due to the flooding and awkward shape of site.  Final quotes are awaiting the completed structural plans.
• Demolition tenders have been received and a preferred supplier identified. Engagement will occur once DA is approved and Builder start date agreed. This will minimise project risk and costs but not delay schedule.
• Landscaping RFQ’s have been sent, and we are awaiting quotes.

Based on builder availability it appears that demolition will occur in Jan 2017 and construction in Feb 2017.