Low interest rates and unchanging inflation rates mean that saving your money in a bank account is actually costing you buying power over time.
Each year that your money is left sitting in a bank account, you are losing 0.2% of your buying power.
Our typical investment performance. Figures are indicative only, see each offer for specific performance targets.
Typical annualised return
End Payment offers higher returns, but is paid at the end of the investment term in a lump sum.
Investment terms are typically 2-3 years.
Regular, monthly distributions
Passive Income pays out returns in regular distributions, with capital returned at the end of the investment term. Investment terms are typically 12 months.
Lion Property Group is the Promoter and Development Manager of various property development Trusts and Companies. We oversee the operation, investment decisions, management, and administration of each of these Trusts.
Our obligations are governed by each Trust’s Trust Deed, the Corporations Act 2001 (Cth), general Trust law, and any other applicable laws.
Over the last few years, we have honed and revised our investment models based on the challenges we’ve encountered from practical experience in undertaking our developments. The result is two distinct models of investment structured to serve the needs of investors and the experience required for us to consistently achieve the targeted performance.
Since these projects had different investment durations, these figures show the annualized net return to investors of each project.
In our first year of operation, we paid out over $1.1 million in profit to investors in cash flow investments.
When a client invests in a project, they are allocated units in a Unit Trust, proportional to the amount of capital invested: $1,000 equals one Unit. At the same time, they receive shares in a controlling entity responsible for the purchase and development of the land: a Special Purpose Vehicle. The special purpose vehicle (also known as an SPV) is a registered proprietary limited company which is incorporated for the purpose of the property developments completion. The SPV functions as a legal entity which collectively represents all investors in a project. Investors also have voting rights in this Company, which for example can be exercised should the management agreement require major changes.
The Joint Venture agreement to undertake a project is between Lion Property Group and the Proprietary Limited Company.
The development site for the project is purchased by the Company which represents the investors, using investor capital. As the investors are shareholders, they are entitled to the assets of the Company to recoup their investment in the unlikely event of an insolvency or other failure. This means that investor capital is secured against the value of the development site itself. If the worst-case happens, investors can sell the site to get their capital back, or take another course of action, depending on what the shareholders vote to do.
While the land is collectively owned by the investors, they don’t want to be doing the work of actually undertaking the development. Which is why the Company appoints Lion Property Group as the Development Manager via the management agreement. This agreement also outlines the plan and overall intended process for the development, including the type and number of properties to be constructed.
As the Development Manager, Lion Property Group is responsible for completing the development on behalf of the Company and the investors. This involves, but is not limited to:
This investment structure is utilised because it ensures that investors are protected, but grants us the ability to undertake the development in a timely and efficient manner in line with investor expectations.
Our projects aim to provide investors with exposure to property development projects and their revenue.