Folkestone Launches its Latest Real Estate Development Fund

Folkestone is pleased to announce that it has launched the latest in its series of real estate development funds, the Folkestone Truganina Development Fund (Fund).

Folkestone is seeking to raise $18.25 million to develop, in Joint Venture with ID Doherty’s, a circa 690 lot residential land subdivision and 3.1 hectare neighbourhood activity centre in Truganina, Melbourne (‘Project’). The Project, known as “Elements”, will be a carefully master planned community offering a selection of housing lot sizes to suit a range of buyers.

The key investment highlights of the Fund include:

• Attractive Investment Returns – target equity IRR of 18% p.a. (post-fees, pre-tax) and a forecast return on investment of 77% (post-fees, pre-tax)
• Strategic Location – approximately 20 kilometers west of the Melbourne CBD
• Strong Demographics – located in one of Australia’s fastest growing local government areas
• Efficient Acquisition Structure – the land is being acquired on deferred terms, with final payment due October 2016.
• Relatively Low Debt – forecast peak Project debt is $16.3 million or 13.9% of forecast Total Project Costs
• Site Readiness – development approved land with construction expected to commence in February 2015
• Underwritten and Co-investment – Folkestone has underwritten the Offer and will co-invest 20% in the Fund ($3.65m)

The Fund has an expected term of 4.5 years.

For more information please click here.