Caulfield Townhouse Development


The project has approved permits and land already in place. Construction will start in September. Project Developer is a reputed party and has been involved in iconic developments such as Eureka Towers and Australia 108. Watersun has built hundreds of townhouses and similar such projects making the risk of project failure low.



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Projected Return

12-18 Months

$5,000 Minimum

14

Investors shown Interest

$1,000,000

Pledged Amount
I  AM  INTERESTED

* Note that this is a No Obligation Expression of interest, you get to review the document before making any decisions

100%

54 Investors Interested


32 Newstead St, Caulfield, Melbourne, 3162,Australia

PROJECT SUMMARY


for whom

Summary

Investors seeking strong returns and wish to invest in a reputed builder.



security_long

Security

The project has approved permits and land already in place. Construction will start in September 2015. Project Developer is a reputed party and has been involved in iconic developments such as Eureka Towers and Australia 108. Watersun has built hundreds of townhouses and similar such projects making the risk of project failure low.



exit

Exit

At project completion Developer will keep one townhouse for himself and sell the other on the open market. Investors get a guaranteed 10% per year return over the period of the project regardless of the outcome.



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Total Projected Costs

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Total Debt

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Total Projected Costs

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Developer Equity
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Investor Equity

SUBURB PROFILE


for whom

Marketability

The Caulfield lifestyle is largely residential; there’s no ‘downtown’ per se - instead you’ll find clusters of cafes and small grocers here and there, plus a major supermarket at Caulfield Plaza – but it’s two minutes to Malvern, Elsternwick and Balaclava, so you’re spoilt for access to great restaurants and shopping in every direction. Monash University’s Caulfield campus draws a big student crowd, Caulfield Park draws lawn bowlers, boot campers and social walkers, and the famous Caulfield Racecourse draws major racing action and the odd expo. There are many schools, both public and private, in the area and it’s incredibly well-serviced for public transport, with buses, four tram routes and the handsome, four-platform Caulfield Station. Caulfield is a pretty, quiet residential area with impressive parks, schools and transport, and a range of housing options, from sleek new apartments to immaculate period homes. It’s got a homey feel but it’s right on the doorstep of Malvern, Elsternwick and Balaclava so the buzz is never far away.


residents

Residents

Caulfield is largely a homey, family-oriented residential area with a significant Jewish community adding a distinctive culture to the area. It’s also home to a lot of independent spirits who like the roomier houses and quiet streets that still feel quite close to the action.

INVESTMENT PROFILE


type

Type

Preferred shares in Special Purpose Vehicle

security

Security

Developer enjoys strong credibility. This is a debt position to a Special Purpose Vehicle

expected returns

Expected Returns

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Expected Return

returns paid as

Returns Paid As

Cash distribution at the end of 12 to 18 months

Taxation

Taxation

It is likely that the SPV will be taxed as a corporate entity and in that case Cash distributions will be fully franked.




PROJECT PROFILE


proposer

Developer

Russell Berman Family Trust using Watersun Builders and the contracted builder.


rationale

Rationale

Caulfield is a wealthy suburb and has a high demand for townhouses. Developer will keep one townhouse for himself and sell the other one on the open market. Comparable sales have shown a strong outcome.


current_status

Current Status

Approved permits, awaiting funding to begin.


duration

Duration

12-18 Months


risk

Risk

Like all development projects, this project comes with the associated risks of building a property. Please read the PDS for more detailed risk.


exit

How To Invest

Express interest using the button above. Read the PDS/Offer document carefully. Enter the amount and details as you deem fit. Sign the document.



PROJECT FAQs


Who is the project Developer?

Russell Berman Family Trust. Russell Berman is a divisional manager at Watersun builders and homes. This is his personal project. Watersun was founded by Benni Aroni who was also the lead developers representative for both Eureka and Australia 108.

What is the investment structure?

The project will be executed by Russell Berman family trust. A million dollars are being raised and will be given to this family trust. A special purpose vehicle will be setup in the form of a company which investors will invest in. Benni Aroni will serve as Director of this special purpose vehicle. Investors will subscribe for preferred shares in this special purpose vehicle. Preferred shares rank ahead of ordinary shares and get paid first. This SPV in turn will lend money to Russell Berman family trust at a 20% annualized and will return its own investors at 10% annualized after 12 - 18 months. At the end of the project this company will be wound down and the investors would be paid out. The return would be paid as a coupon of 10% per annum plus original share subscription price (which is $1 per preferred share). The return can be paid anytime after 12 to 18 months but must be paid after 18 months.

Who is the builder?

Watersun builders and homes.

What stage is the project currently?

Ready to go, construction will start around September. Land and permits are in place. Funding is also in place and investors from EB are essentially piggy backing on an investment which is already prefilled. Officially the raise is 1M but Estate Baron will keep minimum investment at 5K and raise 100K from 20 investors. This will be a first come first serve.

How do the investors make their money or exit?

Investors get 10% guaranteed per annum regardless of the projects performance. There is no upside nor downside.

Who makes the decision to sell the townhouse and at what price?

The developer

Do you have the option to buy the property?

You can purchase the property off the plan for 1.8M for the second townhouse separate from this investment if you wish.

What is the security?

Strong project developer/builder. Watersun have built hundreds of townhouses and have been involved in iconic projects like Eureka and Australia 108. Benni Aroni was the lead developers representative behind both Eureka towers and Australia 108.

What is the implication of any debt in the project?

The SPV does not take on any debt, but is rather lending to the project developer. Investors are shielded from any of the debt of the project as the SPV of which Benni Aroni is the Director guarantees the returns.

What happens if the property is not sold or does not find a buyer?

The SPV is required to give a return of 10% per annum at the end of 18 months (that is 15% absolute return) regardless of where the project stands.

What happens if the project does not make a profit or a lower profit less than 20% or makes a loss?

Investors get 10% per annum regardless of the projects performance.

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