A NEW 4800-home Coast housing estate is being driven ahead thanks to about $14 million in loans to the developer to deliver major infrastructure.
AVID Property Group general manager Bruce Harper said the latest loan – a $5 million cash injection from the State Government’s Catalyst Infrastructure Program – had helped kick off major water and sewage works on the 378ha Palmview site.
Mr Harper said the interest-free loan successfully applied for by AVID would be repaid within the first five years of the development’s 15-year construction time frame.
AVID is spending about $50 million to start the project, with major infrastructure, including sewage and water, having to be built across the whole site, not just the first-stage section.
A $9 million loan from Sunshine Coast Council is also helping construct the major entry road to the site – Peter Crosby Way – which Mr Harper said had been the most expensive access route.
That road is now about 75% complete.
Mr Harper said the loans had helped reduce AVID’s financial risk exposure in getting the development construction-ready, and repayments would be paid by future revenue.
He said the funding had also sped the project up, with key infrastructure works set to finish by September, allowing the sales office to open, while works were also continuing on roads and bridging.
With less financial exposure Mr Harper said it meant lots could be produced at a cheaper price.
Mr Harper said all 43 display village lots had already been sold while the majority of the first 100 lots had also been snapped up.
Considering site access was still limited while works are carried out, Mr Harper said he was pleased with the response from the market.
“It just means there’s confidence in the market there and confidence to get the next stage out,” Mr Harper said.
“It’s very encouraging.”
Source – Sunshine Coast Daily