Thornton (Stage 3A) Development Fund

Property Description

The Fund invested $10.62m of preferred equity into the third stage of the Thornton Central residential apartment project, located in Penrith, NSW. The project, comprised 102 residential apartments, with an end value of approximately $57.2m, formed part of a larger urban renewal precinct known as Thornton, with a mix of low-medium density housing, open space, recreational facilities, and proximity to the Penrith train station and Penrith CBD.

Investment Rationale

The Fund sought to provide Investors with 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 were returned over a Fund term of 19 months.

Key Fund Stats

Fund StatusProject completed and Fund Closed
Project102 apartments – Stage 3A, Thornton Central
Fund Term19 months
Equity Raised$10.62
Investment StructurePreferred Equity via Closed-End Unit Trust
Investor Return on Equity 32.7% (28.9% Forecast)
Investor Internal Rate of Return 18.6% p.a. (18.4% p.a. Forecast)