Call 1300 200 340

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.

INVESTOR UPDATES

  • UPDATE #2
  • Update #3
  • UPDATE #4
  • UPDATE #5
11th July 2018

Dear Investors,

We have issued tender documents to our shortlisted Builders as per my previous update. The tender due date is 20th of July whereupon we will review the offers before formalising a Build Contract for the Project with our selected Builder.

Valuation Update
We have received a new Commercial Valuation Report on the project reflecting the design improvements and larger layout of the Plans. We have seen an overall increase in the Value of the Project by $700,000 which is a great result. I have attached a copy of this Valuation for your reference:

Download M3 Valuation Report >>

Note that this valuation is currently in Draft form will be updated once we have a Building Contract to input.
 
Summary
I am very happy and excited with the result of the redesign and the amount of work that has been completed by both the Project Managers (Adpen) and Design Team (Spatial Environs). They have done a tremendous job, which has seen improvement in values over almost all the Units.. My next email to you will be in late July or early August when we expect to be in negotiations with our selected builder and discussing construction commencement dates.

Kind Regards,

Charles Nee
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.

MINIMUM INVESTMENT

$20,000

MINIMUM FUND RAISING

$200,000

MAXIMUM FUND RAISING

$1,000,000

TIME TO COMPLETION

15 months

FIXED DIVIDEND RETURN

15%

TYPE OF INVESTMENT

Preference Share

Project Location

WalkScore

80

The project address has a Walk Score of 80 out of 100. This location is Very Walkable so most errands can be accomplished on foot.

Security

Redeemable Preference Share.

On completion of the construction of the apartments, the remaining 50% will be sold on the open market with the proceeds used to settle the bank loan first. The remaining projected profit of $1,3 million will be used to first pay the 15% fixed dividend in priority over other investor classes including the developer. 
This means $150,000 of the projected profits of $1.3 million is paid first to investors in this offer plus the the full $1million capital being raised in this offer.


Profit Scenarios

The profit scenario's below illustrate the importance and priority given to investors in this offer.

For example, if the projected profit was down by as much as 80% from $1.3 million to $260,000, there would be sufficient funds to pay the total fixed dividend of $150,000 and the $1 million capital raised in this offer. 

The project is located in an excellent location with 50% of the units already sold at full price prior to construction. With a high WalkScore™ of 80/100 the block itself has very high tenant and owner-occupier appeal.

Profit Scenario 1  Units are sold at proposed price

$1.3m
Total Profit

$150,000
Paid to Investors

​$1,150,000
Remaining Profit

Profit Scenario 2  20% reduction in profits

$1.04m
Total Profit

$150,000
Paid to Investors

​$890,000
Remaining Profit

Profit Scenario 1  80% reduction in profits

$260k
Total Profit

$150,000
Paid to Investors

​$130,000
Remaining Profit


The Concept Explained

This video extract below from our latest webinar explains the importance of the capital structure of a project and how your returns are distributed depending on which stage in the project your funds are used. 15% might seem relatively low compared to our past offers but the relative risk may be lower too as explained in this short video.

Current Filters

woo_filter_post_meta

Array
(
    [0] => WP_Hook::__set_state(array(
   'callbacks' => 
  array (
    0 => 
    array (
      'wpc_filter_post_meta' => 
      array (
        'function' => 'wpc_filter_post_meta',
        'accepted_args' => 1,
      ),
    ),
    12 => 
    array (
      '' . "\0" . 'lambda_19' => 
      array (
        'function' => '' . "\0" . 'lambda_19',
        'accepted_args' => 1,
      ),
    ),
    20 => 
    array (
      'woo_portfolio_post_meta' => 
      array (
        'function' => 'woo_portfolio_post_meta',
        'accepted_args' => 1,
      ),
      'do_shortcode' => 
      array (
        'function' => 'do_shortcode',
        'accepted_args' => 1,
      ),
    ),
  ),
   'iterations' => 
  array (
  ),
   'current_priority' => 
  array (
  ),
   'nesting_level' => 0,
   'doing_action' => false,
))
)