How the Profit Share model works

How the Profit Share model works.

Let's explore how the Profit Share model works and how your returns are calculated.

These investment opportunities can provide you with exposure to profit share upon completion of the project, in addition to the regular distributions you’d receive.

Investments between $250,000 and $500,000 will entitle investors to a profit share exposure of 25%. An investment of more than $500,000 entitles investors to a 50% profit share exposure. When we say “profit share exposure”, what do we mean? The easiest way to explain this is to look at the formula that is used to calculate profit share payments.

This is the entire formula. It has four variables: the amount of capital contributed by an investor, the total amount of capital raised by the Project, the Project’s net profit, and the profit share exposure percentage.

Let’s fill the formula with some numbers as an example. Let’s say you invest $250,000, which entitles you to a 25% profit share exposure. The project raises a total of $6,000,000 from investors, and when the project is completed and sold, there is a net profit of $3,000,000. When you do the calculation, with your 25% exposure, you end up with a profit share distribution of $31,250.

Now let’s swap that $250,000 for $500,000 which entitles you for a 50% profit share. Now you end up with a distribution of $125,000 instead.

As you can see, getting access to the 50% profit share exposure makes a big difference to the final amount that you receive. And remember, these profit share figures are on top of the regular returns that you’d receive for being part of the project, which is normally 12% per year.

12% p.a. distributions,
paid monthly.

Invest in a property development project in one of Melbourne’s premier suburbs.

12% p.a distributions
Paid monthly
Profit share available (subject to eligibility criteria)

This Property Investment Information is prepared and provided by the Issuer.

Contact us.

1300 268 897
info@lionproperty.group

Melbourne

Level 3, 80 Dorcas Street,
South Melbourne, 3205

Brisbane

147 Alexandra Rd,
Clayfield, 4011

ACN 625 889 367
ABN 13 625 889 367

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