Somerfield Development Fund
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.
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 Status||Project completed and Fund Closed|
|Project||“Somerfield” - 125 land-lot subdivision|
|Fund Term||13 months|
|Investment Structure||Preferred 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)|