With $170million of funds currently under management and over $500million of projects in its portfolio, M/Group’s influence in the development funds management sector has steadily increased in pace over the last twelve months, resulting in series of development funds oversubscribing within weeks of their release. The company’s newest investment opportunity located in Wellard is well-placed to follow suit.
The new development fund seeks to raise $6 million to support the acquisition of an 8.3-hectare parcel of land in an off-market transaction within the established suburb of Wellard. The company proposes to develop 116 premium residential home sites based on a development model that has proved highly effective in the neighbouring suburb of Secret Harbour.
M/Group Managing Director, Mr Lloyd Clark, said the model used to assess and ultimately acquire attractive property propositions is now established and proven, and there is a strong demand for similar projects in the investment space.
“The Wellard fund opportunity encompasses several key attributes and factors that has led to many of our previous funds attracting investors and oversubscribing prior to the nominated closing date. This has created its own sense of momentum and we are fielding more and more enquiry even prior to an opportunity being announced,” he said.
“We have now raised over $70million in the last twelve months and continue to be strategic in minimising risk and providing opportunities that are genuinely rare and exciting.“
The Wellard site is located at lots 670 & 1388 Bertram Road, representing one of the last remaining development sites within the master-planned community, which is supported by an approved Local Structure Plan, transport infrastructure, medical facilities, schools and shopping.
The site is comparable to company’s previous boutique land acquisition in Secret Harbour, which was highly successful in the marketplace and resulted in the development program being fast-tracked to keep up with demand.
“M/Group’s approach to its investment portfolio is considered and measured, which is always well received by investors in varying market climates,” Mr Clark continued.
“Our in-house capabilities have also increased over the last twelve months, which provides addition confidence to deliver on program goals. We are thrilled by the results of our work this year and continue to seek new opportunities.”
M/Group is targeting investors for the Wellard Fund with an internal rate of return (IRR) of 22% and forecast return on equity (ROE) of 50% over a 2.5-year term.
A minimum investment of $50,000 is required with multiples of $10,000 thereafter over an estimated investment term of 30 month.