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
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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 |
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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 | $150,000 | $1,150,000 |
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Profit Scenario 2 20% reduction in profits | $1.04m | $150,000 | $890,000 |
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Profit Scenario 1 80% reduction in profits | $260k | $150,000 | $130,000 |
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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.
