The Versailles Capital No. 8 Sorrell Street Fund (the Fund) provides investors with the opportunity to gain exposure to a development project over land at 8 – 12 Sorrell Street, Parramatta, NSW.
The Manager of the Fund is Versailles Capital Pty Ltd, a fund manager that specialises in early stage property development investment opportunities.
The Fund will acquire options over the land which will give it the legal right, but not the obligation, to acquire the land at a price which reflects its current value. The options have been acquired by Versailles Capital which has undertaken to transfer them to the Trustee of the Fund. During the option exercise period, Versailles Capital will progress a development application through the City of Parramatta Council. When the development application is approved, the value of the options should increase significantly reflecting that the site is then able to be developed. At that stage Versailles Capital will arrange for the sale of the options to a developer and realise the gain on behalf of investors in the Fund.
Versailles Capital’s investment strategy has a number of significant benefits:
The price at which the site at no 8 -12 Sorrell Street can be bought by exercising the options is $44,500,000. However, the cost of the options and the cost of making the development application is much less and the Fund is seeking to raise only $4,400,000. So the capital risk is significantly less than buying the land now and then making a development application.
The increase in value of the site following approval of the development application means the return achieved by the Fund is proportionally much greater because of the smaller amount of capital used.
There is no development risk because the Fund will sell before the builders start digging.
Versailles Capital’s property experts have developed this strategy through many years of hands on property development experience. The current focus is on development opportunities in the Parramatta area. Parramatta has been identified by both State and Federal Government as the focus of infrastructure and population development. The following link will take you to a video produced by the City of Parramatta Council highlighting current and planned developments in the area.
The site at No. 8 – 12 Sorrell Street is centrally located in Parramatta, it is close to a number of amenities and further details of the site are provided in the Fund’s Information Memorandum. Current indications are that property prices are beginning to rise again and it is forecast there will be an undersupply of quality apartments in the centre of Parramatta over the coming years. Versailles Capital believes these factors combine to create a potentially excellent investment opportunity.
The minimum investment into the Fund is $50,000 and the expected term of the Fund is 24 months.
The Trustee of the Fund is One AR Pty Ltd and should you have any queries, please contact us on [email protected] or call us on (02) 8277 0000.