This article is from the Australian Property Journal archive
Australia’s largest residential property developer, Stockland, is set to launch its first residential development fund.
The $60 million Stockland Residential Estates Equity Fund No.1, is the first in a series of funds to be offered to wholesale investors.
The minimum investment in the wholesale capital raising is $500,000, SREEF1 is targeting a pre-tax internal rate of return to investors exceeding 18% pa, net of all fees.
Stockland’s chief executive officer of unlisted property funds Robb Macnicol said the entry into the wholesale funds management arena builds on the success of our first two retail funds, Stockland Direct Office Trust No.1 and No.2.
“The launch of SREEF1 is the first time wholesale investors will have unique access to Stockland’s national infrastructure, deal pipeline and well-recognised brand in a geographically diversified portfolio of residential land sub-division projects.
“Projects will be sourced by Stockland from the open market and from Stockland’s existing portfolio, and the capital of the fund is required to be fully committed to projects within 24 months of the close of the offer.
“To ensure a strong alignment of interest with investors, Stockland will co-invest in all projects undertaken by the fund,” he added.
Stockland has identified its Vertu Private Estate project in Western Australia as the seed project for SREEF1, and will offer the fund a 50% participation in the project.
“The longer term performance of the Australian residential market is a key driver for the SREEF series.
“With an investment term of eight years, the fund aims to capitalise on the positive fundamentals of larger, long-dated land development projects to provide solid returns for investors,” Macnicol concluded.
By Kathryn O’Meara
