** The information provided on this webpage is only a summary of the offer and may not contain all the information needed to determine if this offer is right for you. You should read the Prospectus in its entirety which can be downloaded in the Downloads section below as well as on the Project application page once you press the Interest button.
Share accommodation building in the growing suburb of Frankston to fulfill the growing demand for students moving to the area.
A similar development completed in early December is nearly fully tenanted. Several such dwellings have been built for investors over the last three years and are reported as successfully tenanted and operated.
On completion, sell to investor or investment fund or hold for rent and capital gain and subsequently sell. During construction, Ricard Property will work to position the project for sale so as to give investors the option to sell or hold for the medium-term.
frankston, Melbourne, 3199, Australia
Frankston is surprisingly large, but the beauty of it is that it just doesn’t feel it. Yes, it has major amenities like colleges, hospitals and malls, and it’s extremely well serviced for transport in both directions – but its quiet residential feel and epic bay views make it feel more sanctuary than city. There’s the year-round lure of the beach – it’s Frankston’s heartbeat, with its historic pier, pretty boardwalk and rejuvenated foreshore that hosts everything from summertime carnivals to jaw-dropping sand sculpture competitions. If you want fresh air instead of traffic fumes, Frankston’s calling your name.
You’ll find a lot of middle-aged couples and their families enjoying the spacious life in Frankston, with its Arts Centre, convenient shopping malls and proximity to the riches of the popular Mornington Peninsula ‘no-hassles’ life of this beach side area.
Shares in Special Purpose Vehicle (SPV)
Land and Buildings
These depend on whether the property is sold or held. If sold on completion, realizable Development Margin is around 22% on Total Project Cost. If held as a Rental Asset rental returns are high. the nine rooms (the dwelling is on a normal sized house block) generate income of approx $104,000 p.a. net rental yield (i.e.after all costs) on the market value of the property is approx 8% p.a. CPI rental growth will underpin and increase the property’s market value. If subsequently sold, the property would be valued on a rental yield basis and if held for more than 12 months will attract Capital Gains Tax concessions that reduce tax paid on sale profits.
Return Paid As
Monthly Income and/or a Profit Distribution on sale.
Impact will depend on whether the property is sold or held. It is likely that the SPV will be taxed as a corporate entity and in that case distributions will be fully franked.
Project has been funded and is underway.
The proposed development will take advantage of the flow-on demand for affordable housing generated by large spending in education (e.g. major University) and health (e.g. major Hospital)
Development risk is considered low as it is a short-term uncomplicated construction. Market demand for this type of accommodation is real and growing and capital growth can be expected in locations where significant infrastructure expenditure supports a growing population. The principal drivers of project profitability and future property values i.e. low development risk, rental demand, infrastructure spending and a growing population are all present.
How To Invest
Express interest using the button above. Read the PDS/Offer document carefully. Enter the amount and details as you deem fit. Sign the document.
Or pay using Bitcoin
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* Note that this is a No Obligation Expression of interest, you get to review the Prospectus before making any decisions
Who is the project Developer?
In this project the investors are essentially playing the role of the project developers and get access to all the profits that are made by the project. The investors invest in a Managed Investment Scheme setup by Ricard Securities. Michael Van Cuylenberg who is the principal at Ricard Securities acts as the Trustee of the fund setup and acts on behalf of the investor to oversee the project and also provide the financial governance.
Who is the builder?
Modo has been contracted for a fixed price build to construct the structure. They specialize in similar small sized structures and have built similar structures for other investors about 6 times in the same area.
Does Michael control the project? What is his role?
Michael acts as a trustee at the direction of the investors. He has no stake in the fund and plays the role of a service provider.
Can Michael who is the trustee change the beneficiary of the trust without informing the investors?
What stage is the project currently?
A deposit has been put on the property and the remainder amount will have to be paid by the end of September. Construction will start at that point and is expected to run for around 4 to 6 months.
How do the investors make their money or exit?
The preferred position is that the structure will be sold upon construction to an interested buyer. In the absence of this the property would be rented out. Historical data suggests that similar properties in this area have delivered an 8% net yield.
Who makes the decision to sell and at what price?
The trustee will present the offer to the investors and then a vote would decide the further course of action. The trustee acts at the direction of the investors in the fund.
What if I want to hold but other investors want to sell?
The preferred option is to provide a quick exit, but the trustee would be governed by the majority of investors.
What is the security?
The investors are equity participants in the fund which would hold title to the land and the buildings.
How much funds are being raised for the project and what is the equity and what is the debt?
A total of 1 million is being raised. 50% or 500K is debt and the rest 50% is equity.
Who is taking the debt?
The fund is taking the debt.
Debt provides leveraged returns, cost of interest is lower than equity and can provide higher returns to the investors.
Are the investors personally liable for the debt?
If the project makes a loss are the investors required to pay the debt?
No, since they are not personally liable the investors can only loose a maximum of their equity investment. Michael Van Cuylenberg is providing a personal guarantee for the debt portion of this fund and after the funds assets which would include the land and buildings are liquidated the bank would come after him and not the investors to recoup any remainder.
What are the expected returns if the property is sold on construction?
It is projected that the investors would make a 20% return if the property is sold on construction.
What happens if the property is not sold or does not find a buyer?
The property will be rented out and the rent would be distributed to investors as a dividend.