About the opportunity
So what does the opportunity look like?
As an investor, you become a shareholder in the development company.
For a minimum share purchase of $10,000, you will receive an estimated minimum 9% return at the conclusion of the project. This is dependant on the project we currently have a number of sites undergoing due diligence.
There’s no upper limit on your investment amount, but we do cap the number of investors at 20.
No more than 2 projects will be undertaken each year and the investment is anticipated to have a three year life cycle.
What are my responsibilities as an investor?
Unlike other offers in the market, investors will be asked for input on management issues by electronic means on each project. Full feasibility is made available prior to the vote to help to assess the opportunity.
Are there ongoing fees?
To ensure the projects are delivered on time, to the highest standard we expect, we hire highly experienced project managers. These managers are entitled to project management fees, but these will be articulated in any project feasibility.
Is there any other debt?
There will be some debt incurred to complete the projects, but this will be limited to a maximum of 65% loan value ratio; however, we prefer to keep this level to 60%. This debt is secured against the project site using one of our reputable lenders. sites are secured through equity with no debt however debt will be used for cobstruction and limited to 65% loan value ratio. There is no recourse to shareholders and the debt is personally guaranteed by the Directors to protect the investment
Are these projects ASIC compliant?
We take governance seriously and as such, all projects are run and reported in accordance with the highest governance standards and regulations established under the Corporations Act and ASIC. this is not a managed investment scheme. This is a small scale share offer and will comply with the requirements. Unlike other offers we engage investors through consultation on project acquisition.
The project company will report every 6 months on progress and will undergo an independent audit after each project. These audits and progress reports will be provided to you as available.
This sounds great, but what are the risks?
Like any investment opportunity, market forces can have an impact on returns. A catastrophic downturn would have a negative impact on returns, however we mitigate financial and time exposure by securing sites through an option, subject to all approvals being satisfied.
Projects are limited in size to offset economic risks for long term exposure and allow for shorter sales windows.
Loss of key personnel
In the event of a key person risk event, each project can be taken over by another project manager. We have a team of experts available and our documentation process ensures a swift handover should it need to occur.
Difficulty placing finance
The potential exists with any project to have difficulty placing finance. Our team have significant experience in sourcing and securing competitive finance that is tailored to the needs of the project.