https://www.youtube.com/watch?v=tOpqid1dpw0

welcome to everyone good morning um appreciate you joining this morning for those who don't know me I'm Matt I'm the COO at giraff um today we'll be talking about the todp which um I think is obviously a big topic of conversation um not only in the industry but you can't really open a newspaper at the moment without any discussion about this and and depending on which newspaper it's either a nimi or yimi um perspective um we've got Tom good good friend of ours and and partner as well um from planning and Co who will be talking through the policy side of things and then we've got Rob uh CEO and co-founder at draa who will be sort of diving into what that policy looks like in action in terms of questions there is a Q&A so if you just drop any questions that come up in there that would be great and hopefully we'll have time at the end to answer some of those if not we will endeavor to reach out to everyone offline and answer their question as well so I will now hand over to Tom to get

started thanks Matt everyone hopefully can hear um yes look we get um Rob will will run the screen and um we'll just talk to I'll just give a bit of an overview to the of the the policy and its implications and then Rob will do a bit of a deep dive into using the Tool uh the draft tool and um you it's really been powerful for us um and so yes so I'm I'm a town planner Tom good from planning and Co and we've been working with giraff on on this tool and also the imple I guess implementation of this policy um that's um soon to be dropped we've seen a huge amount of policy uh being released by the state government in the last 12 months um and some of it's still in draft some of it's still working through um some of that we're not sure about how it intersects um but this one is a is a pretty sound policy it's it's graded land use and transport planning it's not a New Concept we had the the cuman plan in the 1950s that sought to drive growth around um transport amongst other things

also around open space and and amenity um so you can see there on the image um on the draft mapping there the I guess that's the rail the metro and heavy rail network of Sydney um the the blue dots there um are the um 31 Metro stations that have been identified um and there's two parts to this Todd program the first one is um eight master plan precincts and we'll come back and talk about one of those um eight which is is Crow Nest um but those eight master plan precincts and they're looking at a 1200 meter catchment um of those precincts and it's it's it's um bankstown Bas West which is the uh in you know in rosil B Vista um croses homebush Hornsby Kelly Dyan mcar park now a lot of those precincts have already had either some State Le or Council Le um Master planning and and work that's already commenced I think that's that's been a driver by the government's chosen those the first eight um and what we've seeing is that these Master plans that's already been

done will in form a state Le resoning so a self- repealing set most likely uh that'll be exhibited towards the second half of this year part of that you know we've see a key plank of that will be up to 15% affordable housing and that'll be subject to feasibility testing and I guess Rob will give us a bit of an insight as to using draft to actually do that feasibility testing at a higher level um and then a fast trck State significant development pathway uh that'll be open for a couple of years probably two or three and that's about stimulating the housing delivery bit of use it or lose it um bit of policy so then we have the the blue uh dots there and that's the uh part two of the Todd that's 31 train or Metro stations they're looking at a broad raging policy so it's not site specific planning to be done it's about a broad raging policy a SE a Todd sep and Todd sorry for the you know anagram acronym but it's um Transit oriented development um sep so that's

just looking at blanket controls around those 400 meters around those those stations um it's looking at making residential flat buildings permitted in all residential zones in that 400 met and so you know I guess a pretty intrusion policy over local Council planning uh and you can see some of these places you know Rob's looking at there that pretty low low is density around these centers so it's quite an intrusion policy um so residental flat building is permitted in that 400 meters pretty much what they're talking about now is blanket development standards of of 3 to1 FSR and 21 meter high control and Rob would do a little zoom in on I think it was Kara and we just picked a random site to show how what does you know 3 to1 look like within 21 meters and I think you know from the work we've done over the years pretty hard to get 3 to1 in 21 meters um there's there's a policy and then they talking about 2% affordable housing uh as well and so this is set that probably

you know coming out in the coming weeks we' heard sorry Rob throw to you no I was going to jump in and start going um but I'll let you finish or am I good to start feasibility on this on this house all right so am I right Tom that I can take this this parcel of land assuming we can acquire it and put 3 to one FSR on it up to 21 M I say six levels that's yeah I mean that's current intent of the policy and obviously it's about how do you fit that and it's also there's also the other layers of of environmental assessment you know it's about blocking views overshadowing you know trees setbacks all of those all those things that are still considerations yeah and the Heritage Conservation Area because this is not a Heritage item it's all good is that correct yeah look I mean again subject to um you know the final grain assessment but certainly Heritage items you would say would being knocked out of that so yeah all right well let's uh let's crack in so what I've done is I've

I've set up a I've picked on the site and I've set it up so it's a 2,460 m site and again we literally chose this you know this morning we don't know anything about this site at all um but if the owner is on the call maybe we can get to a you know a feasible um scheme and um can you guys see my screen yep right yeah good oh something just happened Zoom just told me to share my screen again so so what I'll do is I'll put a six Feer apartment block on uh sorry six level apartment block on the um on the site all right just in the middle for now so I'll use the residential use case and I'll drop it down to six levels and um you can see there we're now achieving an FSR of of 1.9 so if I click across here um the gross area that we're getting uh is 6,000 square m so six levels times roughly you know a th000 square meter on the floor plate um and we could probably but which is if we come back to the the the FSR is well below the three um so to achieve that three is going to be

relatively tricky um if I turn on the the aerometric metro map you can see you know there are small setbacks for existing hous but obviously those are you know one or two stories um so to put six stories right on the boundary is going to be a challenge potentially we can um I'll do you know try and maximize the site out like this I'm sticking to a 20 meter wide floor plate so we can get the the adg uh compliance but even when I do that and sort of really start pushing the boundaries in terms of uh front setbacks I guess it's a 10 meter setback you know we're still only at an FSR of of 2.6 so we're not able to maximize um that FSR probably one way to do it would be to see if we could relax the height you know add an extra level if we come in a little bit so if we go to eight uh and move the the um the built form towards the center of the site we can get to an FSR of three and here the building's only covering 50% of the site so um that doesn't mean that 50% of the

of the site will be landscaped um but uh 50 you know the building will already take 50% so hopefully with a sub Iran car park will'll be able to retain these trees um and some some Landscaping as well um and what I thought I'd do is is do a very quick and very crude feasibility and I'm very conscious that there are a lot of people on the on the call who know more about feasibility than I do um but if we run through this as a this is now a gross area of of 9,000 square meters which is giving us a sellable area of of 6, 00 M and a net area of approximately um 75,000 M FSR of 3 to1 and we put it in a construction cost of 75,000 bucks a square meter the reason I've set that is I'm imagining it's 5,500 square a square meter for the for the apartment plus say 2,000 for the underground car park uh which we can change to 8,000 that's that's say escalation has occurred um and a soft cost so that's all Consultants Finance costs Etc of 20% on top of that that

construction cost which again there will be people on the call will tell me exactly how wrong I am um but you get a total cost of $86 million for this site with those assumptions for this building with those assumptions and if you sell it at $155,000 a square meter um you can see that the Delta if you take that income and that cost and you minus the two from each other and the reason I'm not calling it profit or anything like that is because that Delta would need to be split between the land owner the government and the developer terms of profit and risk margin all of those things uh is only $10 million so um the market value of that site I'm not quite sure what it would be but you're suddenly talking about quite a thin um amount of surplus there so either those construction costs have to come down so if we can get it to $6,000 a square meter including the car park suddenly that starts becoming much more reasonable if we get back into the the set though and we can only we don't go

for high yield we go for the six stories uh and an FSR closer to 2 and a half to one instead of the 3 to one uh we've come down again but it's not too bad um but you can see now what happens if we push for an affordable component and so we say if on average instead of selling a $155,000 a square meter we're going to sell a $122,000 a square meter um and that may be a combination of some of the units are selling at a 20% discount and some selling at Market or someone selling at aord you know the re the way the mechanism by which this average realization rate is reduced there's many ways of doing that and if we save that we sort of get back down to that quite thin um 11 million doar of of of Delta between the actual hard construction costs plus the consultants and the income that the site can can generate and so I think what's going to be fascinating oh sorry Tom is is just saying actually works out yeah and I think as well Rob was just the other bit

is with with giraffe where you can you know we know that the government policy that they've flagged a potential well a mandatory minimum of 2% affordable housing that'll grow over time um as well as things like we have state infrastructure contributions um you know 10,000 per unit and so on so and that's the great thing with giraffe that you can actually add those into your um you know the feasibility assumption that will be that will change per site uh but some are very I guess standardized across Metro Sydney yeah and then combining those with the actual build form because obviously the 0g is still I understand going to apply there maybe with lower level there may be some flexibility um but you know if everyone's putting six stories and those those setbacks are not respected or you know not well defined then uh the overshadowing is going to be very hard to achieve so I've just copied that apartment across just to say let's say the neighbor does the same thing and you

can see that that facade there um whilst the top the top apartments are doing great they're getting four and a half hours of Sun between 9 and three the bottom levels is only getting sort of an hour of sun and so to achieve that AG compliance will get increasingly more difficult as these apartments um you know spread around the the precinct not to say it's impossible there's almost always a designed solution um but just becomes tricky and so the controls the broad you know blue circle go 3 to one go six stories is all well and good but actually uh interrogating each site as to to these fining grin controls uh becomes incredibly tricky and the built form and their feasibility need to interact very tightly um in order to to get something that actually

works we we talked about those tier one uh Todds sites so maybe we could have a look at at Crow nest and and you pick a site there to do some planning and that's one where the state government are actually doing I guess some you know detailed site by site Master planning and I think we talked about you talked about the apartment design guide and I said there was a question there on on adg that's the apartment design guide which under the housing SE a state policy uh is given a statutary basis and that's about you know good good residential design um and there's also we talked about there's other there's other policy levers that are being pulled and how the intersection of those levers and I don't know rob you had some analysis of of the catchments around supermarkets um and one of the policy leaders is they're talking about a low to medium density infill which says that um you know if you're within 400 m of a an E1 one local Center zone or a mixed use Zone that has a I guess saying a

requisite level of amenity which includes a full line Supermarket that you you can also get you know 3 to1 and 21 meters height controls 3 to1 FSR um so yeah the team at draff have mapped that now they are not necessarily full line supermarkets and and I guess as a you know I guess a note there is a full line Super Market is not a defined planning term so it would be interesting to see how the government you know deals with that in the planning policy um but you can see that you know you have these areas of I guess Rich amenity which are the the what the government policies are focused at um but with the this this provision the load to medium density INF field Provisions that policy is also talking about potential um savings from the apartment design guide and one of the main ones is reducing minimum building separ ation requirements um for five and six story buildings to match the current requirements for four stories so um at present it's a bit of a

wedding cake uh approach to building built form so where you have buildings up to four stories they they should be set back 12 meters from each other uh and you can sort of see that form in a way that St Leonard South which has been recently planned by Lan Cove Council um and then when you get above the four stories um that's the 12 meter setback and then you go to that's and so set of six meters to your boundary then it goes from five to eight stories up to um uh 18 MERS which will be then 9 meters to your boundary and then again you know above nine you start you set back again and it's 24 MERS so what the provision is saying is that well instead of setting back at four stories we're going to allow you to set back at the sixth story um so you can get you know I guess a bigger bulky of four um so it'd be worth maybe zooming in as well and then there's other Provisions as well you know Rob about the 30% bonus FSR and height for affordable housing um

so again there's another provision that has been brought in by the government which is will give you 30% height and Floors spased bonus if you deliver 15% of your total yield as affordable rental housing um so yeah there's a lot of there's a lot of considerations and that's why I guess having a tool like giraffe is really powerful to be able to model all of those things because you still have to um you know still have to meet the requirements of you know partment design guide amenity you know shadows and all those things so I'll let you show a bit of an example on C this well yeah all right so so what we thought uh we'd look at was uh this uh site or sites over here and you can see um if I turn the precinct down and I'll just turn off all of the the catchment layers you can see um you know fine grained some some houses sort of some maybe duplexes you know Town Homes Etc um whereas across the road we have these apartments um now they are on if I unlock this layer uh and just look at

them sorry did I unlock the wrong layer there it is uh I'll just show you what they look like so that's what that looks like at the moment so I think sort of one two three four five six stories maybe a few more um that Park is actually that park over there so this is a view on D Avenue um and if we turn that down we turn the imagery down and we look at the the actual controls the height of building those are at a 21 meter height um this is you know you can see there's a bit of a hodg Podge 25 30 12 8 15 and and our side here is currently uh 8.5 so we're going to imagine that we're going to go to 21 and maybe a bit more and um you know CU these are about 10 years old to see what we can do in terms of a feasibility so very similar exercise to what we just did in Kara but here in Crow's Nest at a at a larger scale um and often what I like to do is just copy something so I'll just copy that building and I'm just going to drag it onto our site uh and I'm going to

turn it onto the the right layer which is the crow working layer and then I am going to um turn it into residential so if I just um lock that layer so I don't get myself confused and select residential and to start off with I'll I'll keep it um I'll keep it at six levels so to sort of match across the road there um and I'm going to keep as I work an eye on the the FSR rather than the financial so far so this is an FSR as measured across that blue so we're now uh 0.7 um so if we sort of you know oh may maybe maybe let's uh literally just create the same buildings um that are across the road um rather than doing any creative work at all um and just copy and paste and see if we can get something that's looking uh from an FSR perspective roughly right you can see we're actually with this density not able to so potentially we can start pulling things out um like that and getting a bit more density again I'm at the moment I'm I'm I'm going I'm trying to charge to 3 to one