Investor Risk Profile: Suitable for investors with “High Growth” Risk Profile
Investment Time Horizon: Long term (5–10 years)
Fund Objectives: These funds will consist of individual property funds (or Special Purpose Companies [SPVs])— and can be tailor designed by PFMA to suit both the needs of the individual investor, or a pool of investors. These funds are tailored to suit investors seeking to invest where they wish to diversify their investment by joining with other investors thereby enabling them to secure much larger sites with reduced risk.
These syndicates will only hold broad acre property/properties earmarked for future re-zoning into residential zoning then qualifying for development into residential lots.
Purpose: to create a series of property funds enabling investors to invest in land that has the potential of being developed for residential purposes in the long-term. Investors may not receive any returns during the land-banking period, which could be for 5 to 10 years
Suitability: suitable for investors seeking to invest for the longer term (five years plus) and who are seeking a high rate of return given their risk profile. Any dividends or return of capital is not available until the land is sold (externally) or retained within the PFMA family of funds.
Investors in the “Land-Bank” Series of funds will be best positioned to also participate in other PFMA funds, as follows:
e.g. PFMA’s Residential Land Development Opportunities Fund*. Investors will be offered these further investment opportunities ahead of the broader investor market, with the option to either redeem their total investment or to re-invest all or part of their funds to secure shares in the Residential Land Development Fund. This fund will then develop the land into saleable residential lots. Generally these property funds commence paying returns to investors within 2-3 years of the commencement of the fund (See Residential Land Development Fund below for further information).
Indicative returns: Indicative investor returns for these funds can range from 0% to 1000% depending on the nature of the site town planning and local council regulations, state government regulations, time it takes to secure re-zoning, the costs in obtaining the re-zoning, and population trends and growth.
Performance Fees: PFMA will generally be entitled to a performance fee based upon the return in excess of the forecast return to investors as disclosed in the Information Memorandum. PFMA’s performance fees (if applicable) are detailed in each Information Memorandum.
Fund Manager: These funds will be managed by Property Funds Management Australia.
PFMA’s fee structure is outlined in the Information Memorandum
* Note: PFMA will seek approval that the fund qualifies under the Australian Federal Government’s SIV program before being offered to such investors seeking permanent residency in Australia under that immigration program.