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17 Hall St, Brighton VIC

Offer Summary

Net Return:

35%

Annualized Return:

17.5% p.a.

Investment Term:

24 months

Offer Open Date:

June 15th, 2020

Offer Close Date:

October 9th, 2020

Expected Completion:

August, 2022

Investment Information

Investment Objective

The purpose of this Offer is to raise capital which will be used to acquire land at 17 Hall St, Brighton for a property development project and cover the preliminary soft costs of creating the development design. The sale of the developed property upon completion of the development is expected to generate a profit which is how investor returns are paid.

Investment Structure

Investment into this project is managed via an unregistered Unit Trust. A special purpose vehicle (SPV) company has been created to function as the Trustee. All income and capital is distributed to Unit holders according to their number of units. The land acquired for this property development project is wholly owned by the Unit Trust.

Delay Compensation

2% for each quarter beyond expected investment term.

Exit Strategy

Sufficient revenue from the sale of completed property to facilitate investor payout.

Capital Raise

This Offer is raising a total of $3,000,000 from Investors.

Key Financial Info

Development Sales$11,000,000
Development Costs-$8,797,543
Borrowing Interest-$309,905
Profit Margin$1,147,098
Margin on Investor Capital38.24%

A full feasibility study is included in the Information Memorandum for this offer.

Project Information

Project Deliverables

The plans for this property development project involve the demolition of any existing properties on site and the construction of three luxury townhouses. The Trustee anticipates a final combined market value of $11,000,000. The final properties will feature four bedrooms, underground parking, and private access via a Right of Way access path. This configuration gives us flexibility to fit more properties on site while still ensuring proper accessibility. Considering the prestige of the suburb and the versatility of the site, there is plenty of potential for price growth in this development project.

Zoning & Permits

Brighton falls within the jurisdiction of the Bayside City Council. For this project, we anticipate that we will need to obtain a Report & Consent Approval and a Asset Protection Permit from Bayside City Council, as well as a building permit from a private building surveyor.

Suburb Overview

Brighton is one of Melbourne’s most premier postcodes, with a median sales price of $2,840,000.

The suburb is consistently in demand with luxury homeowners and has been experiencing price growth over the last twelve months. Brighton is a bayside retreat of luxury homes and a beach decorated with picturesque bathing boxes.

Situated 11 kilometres south-east of the CBD, Brighton has a long-term loyal community of established families and retirees enjoying their post-work years in the sun and sea.

The suburb is home to excellent schools, boutique shopping, pristine amenities, a golf course, and enviable, immaculate houses.

Configurations

#14 x 3.5 x 494m²
#24 x 3.5 x 534m²
#33 x 2.5 x 390m²

Key Market Data

Median Price$2,840,000
Change in Median Price (1 Year)0.2%
Change in Median Price (5 Year)0.2%
Properties Sold257
Median Asking Rent$1200
Avg. Days on Market34

Are you eligible?

Some of our investment offers are restricted to investors who meet certain criteria. Please complete a quick eligibility test so we can offer you the appropriate investment options for your financial situation.

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