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AYR Development Managers Pty Ltd is an international property developer, owner, partner and manager of commercial and residential real estate properties.
As the property development business becomes increasingly complex and with more investors seeking good investments in real estate, there is a growing need for professional development managers. The AYR Development Team has the training and experience to undertake projects from its inception to its successful operation or sale.
We have an intimate understanding of the marketplace which allows us to recognize opportunities and generate value for our partners and investors. As an experienced specialist in real estate development, we search for new opportunities, analyse its potential and find best option for financing. Our role spans the full cycle from concept, needs assessment, planning, feasibility studies, funding (equity and debt), due diligence, engineering and design enhancement.
AYR Development Managers Pty Ltd was created to provide the growing need for professional property development management for our ownership group. We specialize in designing and developing sustainable buildings for growing communities. Our development team is made up of experienced property professionals that are committed to providing innovative solutions to meet the most demanding real estate requirements, which include:
- Development, Construction and Project Management
- Master Planning and Architecture
- Creative Financing and Ownership Structures
- Joint Ventures and Property Syndication
Expertise
Our ability is based on our expertise across a broad range of complementary areas related to real estate development and these include:
- Expertise in analysing a range of costs and benefits associated with a new development from a holistic perspective, with methodologies of cost benefit analysis;
- Expertise with the integration of sustainability into a range of project types and scales, working on many projects that have integrated ecological sustainable design (ESD);
- Expertise in arranging and procuring favourable and creative development finance through our association with financial institutions and understanding of banking systems;
- Technical expertise across a range of areas related to the design and construction of new buildings, ranging from commercial to residential;
- Expertise in aspects of local government planning policies, in particular the current regulatory systems for development approvals and a firm understanding of the process and implementation aspects.
Business Strategy
Our business strategy is to identify and then execute development and investment opportunities across various real estate sectors. Our strategy includes:
- Sourcing development opportunities to design and construct new buildings;
- Trading opportunities to undertake refurbishment and expansion of existing properties;
- Promotion of joint venture partnerships with third parties to secure additional development opportunities as well as to potentially to reduce development risk.
- Sourcing real estate opportunities by adding value in providing equity, management and expertise;
While we source opportunities through traditional channels, we believe we have a competitive advantage in being able to utilize our extensive business network through AYR Corporation.
Development Philosophy
Our philosophy towards real estate developments is that superior returns are achieved through an active management approach based on our extensive experience and understanding of the real estate market from both an investment and risk management viewpoint. Our developments are benchmarked against defined criteria including:
- predictable and stable long term cash flows;
- revenue growth potential;
- availability of a significant interest or shareholding; and
- a risk/return profile complementary with the risks associated with such investments.
Development Policies
Prior to undertaking a new project, we undertake a thorough due diligence process on proposed project. The due diligence is to identify the potential risks and determine what strategies may need to be adopted to reduce the effect of these factors. AYR evaluates the opportunity having regard to the following criteria:
- Preparation of several detailed feasibility studies which are constantly analysed and refined to determine if the project has the ability to meet the targeted return.
- Where a joint venture is involved, we satisfy ourselves that the joint venture partner is compatible and has the ability to add value to the project in question.
- Gain an understanding of other risk factors, such as local government regulations and restrictions, local tax issues, planning and environmental issues, so that we are satisfied that they can be effectively managed.
- During the feasibility stage, we perform a sensitivity analysis by testing a number of possible scenarios to determine their impact on the profitability of the project and their effect on the projected returns.
Types of Developments
The development opportunities undertaken by us include any of the following sectors:
- Retail – shopping centres, showrooms, specialist retail outlets and bulky goods store
- Industrial – industrial land, warehousing, logistic and industrial parks
- Offices – office blocks, business parks, science and technology parks
- Leisure – hotels, service apartments
- Residential – land sub-divisions, townhouses, villas, apartments and student housing
- Retirement – lifestyle villages and aged care
- Community Infrastructure – medical ,child care, aquatic, sport and recreation
Our role in a Development project span the full life cycle from finding opportunities, concept, needs assessment, financial analysis, funding (equity and debt), due diligence, engineering and design enhancement (through our extensive architectural experience), development, project management, leasing (where applicable) to the eventual sale, trade or disposition of the asset. Our specialist areas include:
- Development Opportunities
- Development Management
- Architecture and Planning
- Corporate and Ownership Solutions
- Project Management
Development Opportunities
As developers, we are always seeking new development opportunities. The skills involved are based on knowledge of the local markets and economic conditions. We assemble first-hand knowledge of both the subject opportunity and the objectives of our investors or JV partners to ensure the right transaction is made.
We work with local real estate professionals, ranging from agents to property valuers to provide us with potential development opportunities. We research and study the current and future zoning and structure plans of local authorities to assess future potential developments.
Development Management
Development can be a complex process and a successful outcome requires a careful planning, analysis and knowledge, both in terms of the markets and the process itself. When working on a project, it is essential to align the right team of professionals with skills and knowledge that work together to address each element of the process effectively. Our principal aim is to assist our partners and investors to create value, minimise the risks and maximise the returns in a development venture. We achieve this through:
- An understanding the development process
- An understanding the market
- A knowledge of the legal aspects
- Contacts with lending institutions
- Contacts with professional consultants
- Contacts with building contractors and tradespeople
As Development Managers our role is to analyse the development before a final commitment is made to proceed with construction. All development factors are studied in detail, including planning issues, land and building costs, investment value, funding options, rental value, demographics and environmental factors. Each of these elements is addressed by a knowledgeable specialist with extensive experience into the type of project undertaken. This allows us to provide our investors and JV partners with a realistic assessment of a project’s feasibility, both in terms of planning outcome and from a commercial point of view, including timing and financial projections.
Project Management
In addition to Development Management, we provide comprehensive Project Management. These roles overlap during the development process. Whist our Development Managers analyze the development’s potential and then form a strategic framework policies; our Project Management role is to ensure that these policies are delivered by careful planning, organizing, and managing resources to bring about the successful completion of specific project’s goals and objectives. Our project management role covers the following items:
- Assist the Developer or Development Manager with preparatory planning, economic analysis, ad-hoc evaluations and determination of investment;
- Assist the Developer or Development Manager with the relevant formalities such as requisition of land and application for planning approvals;
- Assist the Developer or Development Manager with: design requirements, appraisal of design plans, execution of design contracts as well as supervision of its implementation, organizing the design team to optimize the design by analysing various options in technical and economic terms;
- Undertake the supervision and construction of the works as well as equipment procurement tendering (if required);
- Undertake the role in executing related contracts with general contractor or construction contractor as well as suppliers of building materials, equipment, structures and fittings as well as assisting with supervision of its implementation;
- Undertake the role in preparing cash-flows, handling construction claims and payment settlement upon completion and final accounting for the works, , organizing completion acceptance and transfer of as-built files to the owner;
- Undertake the management during the trial operation and warranty period and organizing post project evaluation;
Architecture and Planning
With two directors, Ron Forlee and Ron Jee, being architects, AYR understands the strong correlation between commercial development principles and the design and planning of a new development. The fine line in balancing and combining good architecture with commercial principles is fundamental to the success of a new development.
We work closely with Architects and Planners who understand this underlying principle. One group that we work closely with is DesignInc, who have offices in all major Australian cities including China and the United Emirates. In line with our own approach, DesignInc focuses on creating quality environments that reconcile natural, social, and economic imperatives.
- The Natural Environment – we are committed to Ecologically Sustainable Design (ESD). We apply passive design strategies, renewable energy, and material selection in ways that support the continuity of the natural environment.
- The Social Environment – our pursuit of quality, sustainable environments ensures that human well being is at the core of all design. We value the stimulation and enrichment that comes with engaging successfully with a place.
- The Economic Environment - building and architecture operate within the sphere of a dynamic system of economic forces. Sustainable design remains viable and flexible. Through life cycle analysis, material selection, and design innovation, we provide solutions that make long-term sense.
Corporate and ownership structures
The decision to start a development should be based on a solid value foundation. We analyse the type of players, the preferred business models, the market adoption scenarios, the potential market demand, and the most advantageous channel strategies.
Our objective is to safeguard and maximise the development project’s potential whilst minimising conflict between stakeholders. By adopting a proactive approach to pre-empting and structuring both business and financial models, with a focus on adding value, both in financial terms and in the delivery of the project’s goals. The 'set-up' is critical to success.
Before starting a new development, we carefully analyse and determine the type of ownership vehicle and corporate structure that will best suit our development strategies. In the process we consider some of the more pertinent aspects, which can include:
- What are the long-term goals of the development group?
- What control do we want over the development?
- Who will run the daily management activities?
- Which vehicle has the best tax advantages?
- Can the ownership vehicle be transferred to another party?
- Who will be responsible for any losses?
- What are the personal relationships amongst the participants – is it based on self interest and financial ambition?
- Is the structure and/or business model in line with the short and long-term strategy of the development group?
By carefully considering the various options, we can provide self-protection for the future, should a development project fail.
 Past and Current Projects
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