The Liquid Land Fund (the Fund) is an unregistered managed investment scheme that aims to invest into a portfolio of residential property development loans in Australia secured by real property mortgages. It is anticipated loans will be predominantly mezzanine debt, ranking in priority behind senior debt where a bank or other financial institution has provided senior debt to a project.
One AR Pty Ltd is the trustee of the Fund, and will be responsible for holding title to the Fund’s assets.
Qattro Funds Management Pty Ltd (the Fund Manager) has been appointed as the manager of the Fund and is responsible for managing the Fund’s assets. The Fund Manager will source and assess potential Loans for the Fund and will monitor the performance of the Fund’s loans. Loans will be made to borrowers who are related parties of the Fund Manager. The Fund Manager will make a $1 million investment in Manager Units, which will provide a level of protection against Investor capital losses by assuming a first loss position in the Fund.
The Fund has been established in response to the SA Government’s overarching urban development goals for Adelaide. These goals are the platform for the Fund Manager’s business model, which, through its portfolio of residential development projects, is helping to fund the growth of the city.
The Fund’s objective is to:
- Provide Investors with regular monthly income;
- Provide Investors with indirect exposure to residential property development projects;
- Provide timely and informative communication to investors and advisers;
- Seek to provide an annualised return of 950 basis points over the RBA cash rate, net of fees and expenses.
The Fund’s investment strategy is to:
- Pool investors’ funds together and invest in loans for residential property development;
- Make loans to borrowers where each borrower is responsible for undertaking a single residential development project;
- Hold a registered Real Property Mortgage over the relevant Borrower’s real property to secure each loan made by the Fund. Each Real Property Mortgage will be, at a minimum, a second ranking mortgage.
The Fund is only open to persons who qualify as wholesale clients (as defined in section 761G (7) of the Corporations Act) or sophisticated investors (as defined in section 761GA of the Corporations Act), (collectively, “Qualifying Investors”). The minimum investment is $50,000 from a Qualifying Investor.
Further information can be found in the information memorandum which can be downloaded on the right hand side.
Should you have any questions about this Fund, please contact us on [email protected] or call us on (02) 8277 0000.