Property, funds, and wealth specialist company Landen believes investors are turning their focus to land-only options as the development industry weathers the storms of increased building costs and timeline pressures.
Landen’s capital raising for phase 1 of its first land-only investment vehicle, the Fairway Fund, is now fully subscribed, attracting $6.4 million from high-net-worth individuals and Self- Managed Super Funds (SMSFs), highlighting the demand for investment in the busy Norwest area.
Investments in the retail fund, which targets an 8.75% p.a. distribution rate, net of fees, were for a minimum investment of $100,000. Landen intends to invest the contribution mortgage fund into its 18-lot Fairway Drive land-only project in Bella Vista, adjacent to Castle Hill Country Club.
Already Stage One of the project, comprising 10 lots – each larger than 700sqm – have sold, priced from $2,300,000 each.
The fund launched to the market in November 2021and will run until November 2023. Dividends are expected to be paid in December 2022 and December 2023.
Landen’s Head of Funds Management, Jeff Li, said: “When people invest money, they definitely like high returns, but recognise these come with high risks. Given the current economic situation in Australia and the issues in the housing market, we are seeing an uptick in investors looking to take an asset allocation approach to balance risk and reward.”
Landen has home and land packages available in Rouse Hill, Norwest, Marsden Park and Box Hill. They will soon launch packages in Bella Vista, Grantham Farm, Caddens, Leppington and Kenthurst.
Rashed Panabig, Landen’s Director said the popular North West, with its limited land supply remains in demand.
“The Fairway Drive development is in one of the highest performing priority growth areas in NSW. The area is expected to provide new housing, employment, education, infrastructure and lifestyle opportunities for years to come,” he said.
The Fund is overseen by One Investment Group as the independent trustee and responsible entity. They are a leading Australian independent funds management business providing professional fiduciary and administration services to investment managers. It advises on more than 300 funds and is responsible for more than $35 billion across a wide range of underlying asset classes.