The GWS Property Funds Value Proposition
Residential Property &
Land Development Investment
The Investment Opportunity
- Invest in the expanding residential property market in Greater Western Sydney (GWS)
- Invest in a series of select Residential Property Land Development Funds (Unit Trusts)
- Large land-bank inventories available for the foreseeable future
- Invest in the growth of GWS
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- Excellent Return on Investment
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- Unique product offering with investment diversification benefits (Risk & Return)
- Demand Driven
- Growth Industry for the longer term
- Invest in the Australian dream - owning a family home
Demand Drivers
- Residential House & Land Packages - a clear and demonstrable shortage
- Demand to far outstrip supply for foreseeable future
- Housing is more affordable in GWS
- Owning your own home - still the Australian dream
- Industry Life Cycle including low interest rate environment
- Supported by long term Government Planning & Infrastructure spending
Product
- Housing land and House package Investments only
- Series of closed end Funds of circa $50m (total Debt (conservative) & Equity)
- Running yield target of circa 5%+ pa after 1st year for 6-7 years, plus capital gain
- Less risk than equity type investment / yield
- 10% IRR Target
- Short payback target period
- Other differentiating features
Competitive Advantage & Risk Management
- Clearly documented Investment Philosophy & Process
- Clearly defined product, investment guidelines & focus
- Economies of experience & scale (investment type / size etc.)
- Proprietary & bespoke...
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- In-house financial model
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- deal flow network & data base
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- builder panel data base
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- existing relationships with seasoned professional Industry Experts eg: Town Planners, Surveyors, Builders, Engineers,
Councillors etc.
- existing relationships with seasoned professional Industry Experts eg: Town Planners, Surveyors, Builders, Engineers,
- Deep residential property development experience / expertise
- Governance: Internal & Quality Control processes & covenants (risk management)
- Repeatable & scalable ie: 5-6 funds running concurrently without compromising returns, risk management, effective & efficient management, general governance etc. viz not unlike private equity.
Governance & Risk Management Structure
- Risk & Audit Committee
- Investment / Finance Committee
- Trustee & custodian
- Succession Planning
- Yearly panel reviews eg: builders & project managers
Examples & Track Record
- 124 Lot residential estate
- Infill Development
- Rezoning
- Land Subdivision
- Housing construction & sale
Other Considerations
- Sydney residential house & land market must continue to move west, south west & north west
- Large pockets of undeveloped land exist in GWS
- Government recognition & planning supports residential growth
- Proposed Infrastructure continues to "underwrite" growth in GWS ie Road, Rail, & upgrades in M12, M9 & Outer Sydney Orbital
- Western Sydney Airport at Badgery's Creek to "turbo-charge " growth
- Product suitable for diversification purposes for both retail & institutional investors
- Housing affordability to continue to be an issue nation- wide, but particularly in Sydney
- Manageable & Controllable risks
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- General Operational & Financial
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- Interest rate rise
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- Black Swan Events
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- GFC
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- Housing market collapse
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- Key Man loss