Somerfield Development Fund

Property Description

The Fund invested $5.95m of preferred equity into the development of “Somerfield”, a land subdivision project located in Austral, south-western Sydney. The development involved the acquisition of three parcels of land on the corner of Edmondson Avenue and Sixth Avenue, Austral, to be subdivided into 124 Torrens title lots and 1 residual lot, to provide a mix of dwelling types, including detached homes, single storey semi-detached homes, two-storey terraces and a manor home with 4 units.

Investment Rationale

The Fund provided Investors with an opportunity to partner with Vantage Property, an experienced Developer with a strong track-record in delivering residential projects in south-west Sydney. The rapid population growth and strong residential sales, underpinned by ongoing investment in infrastructure, provided a strong basis for the investment. The contribution of preferred equity provided investors with a priority return over a period of approximately 12 months.

Key Fund Stats

Fund StatusProject completed and Fund Closed
Project“Somerfield” - 125 land-lot subdivision
Fund Term13 months
Equity Raised$5.95m
Investment StructurePreferred Equity via Closed-End Unit Trust
Investor Return on Equity 18.2% (19.7% Forecast)
Investor Internal Rate of Return 18.0% p.a. (18.0% p.a. Forecast)