Start your investment online and add the high returns of property development to your portfolio.
Property development, also known as real estate development, is a business strategy that encompasses a variety of practices designed to increase the value of a property so that it can be resold for a profit. On a smaller scale, this may include activities such as the renovation and resale of pre-existing properties (colloquially known as ‘flipping houses’). On a larger scale, this includes activities such as converting an established dwelling into multiple smaller dwellings or building on unused land.
Property development can take a significant amount of time, requiring the expertise of dozens of experts such as town planners, architects and project managers. However, the expertise required to complete these projects means not everyone can do it and so the results are lucrative – not everyone can do it. Our offered returns are significantly higher than other common investment strategies.
Unlike a buy-and-hold strategy, which relies on market forces exclusively to generate a profit, property developers generate a profit by converting land (or an existing building) into a new property (or properties)—with a higher price.
We allow investors to invest in a single-project via our land acquisition offers, or to diversify across multiple projects via our construction funding offers. These strategies are distinct and are aimed at different investment goals and time horizons.
Property developments are long-term projects and are best suited to investors with a variable time horizon and a focus on long-term capital growth.
Our only fee is a management fee of 2.5% to 4%, which is required to start the project. We only receive a profit on a project once all investors have been paid out.
Property development is a niche asset class with low correlation. This makes it excellent for investors seeking to diversify or hedge.
We have multiple systems in place to ensure investors are kept up to date on how their investments are tracking.
We handle every aspect of the development, so you can reap the rewards with no effort on your end.
Any entity that is legally able to invest in Australia is eligible to invest in our opportunities, assuming they meet the minimum investment requirements of a particular opportunity.
Our team reviews your Registration of Interest and confirms which investment products you are eligible for.
Your Registration of Interest form is assigned to one of our team of consultants. They will contact you to discuss the specifics of our offerings and help you determine which one best fulfills your investment goals.
If you decide to proceed with an investment opportunity, our team will prepare an Investment Agreement. This agreement is pre-populated using the information you provided on the Registration of Interest form. At this stage you will also need to nominate a bank account to receive your return/s.
Once your funds have been received by us (approximately 2-3 business days within Australia) your investment term will begin. For security purposes, we prefer electronic bank transfer to transfer your funds. Details on how to do this is provided on your Investor Agreement form.
The table above forecasts capital growth based on the following assumptions derived from our investment product averages:
When an investor invests into one of our Land Acquisition offers, they are investing into a Unit Trust that has been created specifically for that development. Each investor in the trust receives units proportional to the amount of capital they invest ($1,000 equals one unit). A unit is a piece of property that entitles the unit holder to a specified portion of the income and capital of the Trust (as specified in the Trust Deed). The trustee then uses the funds within the trust to undertake the development on behalf of the unit holders.
For Construction Funding offers, the same applies, except it is a private company with Shares instead of Units.
Expected returns vary per Offer based on our feasibility studies. Generally, our Land Acquisition offers target returns of approximately 30% over the Development duration. The exact return to Investors varies depending on the performance of the Development. This option is for investors seeking to gain the best returns possible.
We also offer a fixed option via our Construction Funding offers which provide investors a static return of 15% per annum. This option is perfect for clients who value security and peace of mind.
For investors and projects within Australia, we generally accept any investment over $250,000. The minimum amount may be adjusted at Management’s discretion. Each investor in a project adds an administrative overhead. Restricting the total number of investors in a project reduces administrative work and costs which results in better returns to investors.
No. You are investing capital into a Unit Trust and you receive returns proportional to the amount of money you invested. The land used for the development is owned by the Unit Trust and the completed properties are sold to purchasers. You do not receive ownership of any of the properties constructed by the Development unless you choose to a buy a property as a separate transaction.
For Land Acquisition offers: Yes. Each Development has its own Unit Trust, and your capital is put into the Unit Trust. Monies from one Development are not used in other Developments. You may invest in multiple Developments depending on the amount of capital you have to invest and our current availability.
In Construction Funding offers, your capital is diversified across multiple different Developments via loans.
Yes. SMSFs can be used to invest in Unit Trusts, and most of our Developments are structured as Unit Trusts. To ensure that your SMSF investment is compliant with ATO regulations, we recommend engaging the services of licensed professionals to assist if you have not already done so.
You will receive monthly updates specific to your investment via email. We also have a invitation only Facebook Group for active investors only, where you can receive updates on all our developments with photos, videos, upcoming events and project launches.
Our investor community is a diverse group of Australian and international investors united by their need for a reliable investment model that provides them financial freedom and flexibility. At the start of 2019, our Investor community consists of over two hundred active investors.
Speak to one of our consultants and they will be able to answer any of your questions.
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View our property development info pack to kickstart your property development journey. All the information you need about Lion, our models, and our expert team, in one convenient place, so you can make an educated decision.