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sherwood development

Kauri Apartments

578 Sherwood Rd Pty Ltd 
"Sherwood 15% Gap Funding Offer"
Offering a priority return of 15% over 15 months
to fund construction funding (Westpac) shortfall.


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  • UPDATE # 7
Subject: 578 Sherwood Road, Sherwood development update – October 2018

By email to Michael Fuller

Dear Investors,

Welcome to the next update for the project. As I discussed last month our fully documented Building Contract was finalised and has now been signed after lengthy negotiation periods. Our team is very pleased with the builder, Constructions Group who are a local long-standing builder and have completed various major residential projects.

Since my last update the builder has commenced preliminary works on the site which consisted of site investigation works (test pits to confirm groundwater seepage and ground conditions). These investigation works allowed the builder to commit to a fixed price cost for the ground conditions; which is where most of the cost overruns occur (cost variations) for these projects.

See following images:

Although this has taken longer than anticipated our team is very pleased with the builder and we have significantly reduced our liability for cost overruns and significantly reduced the build risk.

Sales and Marketing
With the aid of ADPEN’s marketing team, we have run 4 seminars in the last month focusing on Investments into the property market. From these seminars we have generated over 60 leads which we are in the process of converting into sales for our existing projects including this development at Sherwood Road. It is our aim to have the remaining 13 Units all sold by early next year and well before completion of the building.

Also, I'm very pleased to share with you the new renders for the project based on the changes made by Nigel Fitton the architect I wrote to you all about last time. These renders will be used in our marketing campaign in order to sell the remaining stock. 


Construction commencement 
Our construction will commence once the building finance has been approved. We have two main lenders I have been speaking with over the past 12 months including obtaining a preliminary approval based on our old design. I am progressing with both these lenders now that we have a fully signed and documented build contract. There are two main reports that are fundamental to the lending approval and they are; the valuation report and the quantity surveyor’s report.

Our valuation is currently in its final stages after we had a draft valuation completed a few months ago. Our quantity surveyor’s report is subject to the valuation being finalised.  I expect both of these documents to be completed in the next two weeks. Our fully documented build contract and credentials of the builder contribute very positively to the quantity surveyor’s recommendations to the lender. As a result, finance is easier and as I’m sure you know lending has been restricted in recent times.

We are still some weeks away from what I anticipate the commencement of construction. I understand I have promised dates previously and unfortunately there have been further delays since I made these promises. I can assure you, our team are doing the best they can, and I value your patience. We all have a vested interest in seeing this project be a success and I am very confident it will be.

Kind Regards,
Adam Pennisi
Project Manager

15 October 2018

Hi Michael


We did complete a previous Gannt chart however I’ve omitted this due to variables as I would like it to be accurate. I expect to be in a position to comment accurately on deadlines on the following update.


Adam Pennisi  (B.Eng Civil Hons)

Project Director

Project Summary

The Sherwood 15% Gap Funding offer is to raise $1m to fund the gap between the construction funds approved by Westpac and the final costs to complete the construction of 28 apartments in the leafy middle-ring suburb of Sherwood situated 8.3kms from the Brisbane CBD. Construction has started with 50% of the units sold.

Investors can acquire a preferential share entitling them to a 15% fixed pre-tax dividend on completion of the project estimated to be in 15 months. A notable feature of offer: for added peace-of-mind this share will entitle you to be paid your returns ahead of all other equity investors including the developer.

50% of the apartments have been pre-sold with the developer providing personal guarantees for the bank debt.








15 months




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