This article is from the Australian Property Journal archive
SYDNEY-based KSI Investments has launch Australia’s first landbanking managed fund for SMSF mum and dad investors, looking to advantage of the second airport at Badgerys Creek.
KSI has acquired 11.55 acres of land in Rossmore in south west Sydney, located 5km from the planned second airport at Badgerys Creek.
The deal, brokered by KSI as an off market transaction includes two adjoining pieces of farm land and has been structured under an options contract with settlement to occur within the next six months.
The land is expected to accommodate between 110 to 140 houses once rezoned which is expected to occur over the next five to seven years. Purchased for $162 per sqm, once rezoned with an approved Development Application (DA), KSI is expecting that it will sell for $1,669 per sqm based on comparable sales in the south west region, representing a gross investment gain of over 1,000%.
Inline with NSW State Government plans to build an “Aerotropolis” (Airport City) surrounding the Badgerys Creek airport, rezoning is occurring in the immediate vicinity around the acquired land with zoned residential land at Austral being located within 500 metres away.
“Investing in landbanking, that is, acquiring land, rezoning and subdividing has been traditionally limited to wealthy investors and property developers,” KSI CEO Robin Luo said.
“However, KSI Investments has opened up this sector to retail investors via this Australian first, with a minimum of $2,000 investment under a retail managed fund structure,”
Luo added that KSI fund is also overseen by the corporate regulator.
“Unlike many property syndicates which are wholesale in nature and have lesser supervisory requirements, the KSI Sydney Landbanking fund is a retail managed fund overseen by ASIC.
“In addition to this, KSI Investments has engaged Perpetual Australia Limited as custodian for the fund, named the Sydney Landbanking KSI Investment Fund. Perpetual Australia is a publicly listed company funded in 1886. It has $31.4 billion in funds under management, $13.5 billion in funds under advice and $657.9 billion in funds under administration,”
The fund is able to accept investment from SMSF investors as well as private investors, companies and trusts.
The Sydney Landbanking KSI Investment fund is also available as an approved investment under retail super fund Super Simplifier.
Using the investment registry services of Domacom Limited, investors are able to trade units in the fund freely, meaning they have liquidity before the eventual land sale after rezoning occurs.
Lou said KSI will charge a 2% annual management fee and 20% performance fee on the eventual sale of the land.
“The Sydney Landbanking KSI Investment Fund is the first of several planned by KSI Investment. We wish to share our expertise in the property industry and bring unique opportunities to everyday investors, who have not been able to access investments such as landbanking in the past.”
Australian Property Journal
