A development fund is a managed investment scheme that allows investors to invest in large scale property development through debt financing arrangements or direct equity investments.
The investment philosophy of these funds lies in adding value to a property, either by turning empty land into useable space (e.g. by building residential apartments or a shopping centre) or repurposing existing land to make it more productive and valuable. Fund managers source projects with attractive returns and appropriate risk profiles, and then provide the developer with capital to execute the necessary steps such as acquiring a site, obtaining development approval, constructing the property, and selling or renting the property upon completion.
A property development fund allows investors to access an asset class that is otherwise inaccessible without a large capital outlay for land purchase, development applications, planning and construction. Investors can choose development funds that invest in a single development project or one that has a diversified portfolio of projects in different types of property and/or different geographical locations.
For further information on selected development property funds for which members of the One Investment Group act as trustee/responsible entity, please click on the investors tab at the top of the page or hover your mouse over the “Investors” tab until a dropdown menu appears, then hover over the “Property Funds” option followed by the “Development” option.
Should you be interested in establishing a new property fund or are contemplating outsourcing some of the functions of an existing property fund, please do not hesitate to contact us.