Thornton Development Fund

Property Description

The Fund invested $11.5m of preferred equity into the first stage of the Thornton Central residential apartment project, in Penrith, NSW. Located upon former defence land, the project formed part of a larger urban renewal precinct known as Thornton (initially undertaken by Landcom) and benefitted from its proximity to the Penrith train station and Penrith CBD. A total of 151 apartments were constructed with an end value of approximate $62.5m.

Investment Rationale

The Fund sought to provide Investors exposure to a high-quality residential project with strong levels of pre-sales and a highly skilled delivery team (St Hilliers and First Point Projects). The contribution of preferred equity provided investors with a minimum priority return and the potential for additional returns from residual project profits. The Project was completed on-time and within budget and Investors equity and profits returned over a Fund term of 18 months.

Key Fund Stats

Fund StatusProject completed and Fund Closed
Project151 apartments – Stage 1, Thornton Central
Fund Term18 months
Equity Raised$11.5
Investment StructurePreferred Equity via Closed-End Unit Trust
Investor Return on Equity32.2% (26.2% Forecast)
Investor Internal Rate of Return 22.8% p.a. (20.2% p.a. Forecast)