Folkestone Launches New Development Fund

Folkestone Limited is pleased to announce that is has launched the Folkestone Wollert Development Fund which has an 80 per cent interest in a circa 42.2-hectare residential land subdivision known as Amber in Wollert.

KEY TAKEAWAYS:

• Amber is located within the Wollert Precinct Structure Plan (PSP) which has recently been approved by the Victorian Government.
  • As a major new master, planned suburb in Melbourne’s north.
• Wollert is located in the City of Whittlesea, approximately 25 kilometres north of the Melbourne CBD.
• The Fund will develop, in joint venture and ID-Land, approximately 560 residential lots providing a selection of lot sizes and price points to suite a range of buyers.
• Folkestone Wollert Development Fund will be seeking to raise $19.05 million of third party capital with Folkestone investing with an additional $6.35 million via its co-investment in the Fund.
• The Fund will have a target IRR of 17.0 per cent (pre-tax, post fees) and a forecast return on equality (pre-tax, post fees) of 56.0 per cent.

Folkestone’s Managing Director, Mr Greg Paramor, said “The securing of the land in Wollert, in joint venture with ID-Land, prior to rezoning and then selling down to a Folkestone managed fund once re-zoning has been achieved, is consistent with our strategy to use our balance sheet to secure attractive investment opportunities for our funds management platform. At the same time, it has generated a strong investment return to Folkestone from the rezoning fee.”

“We expect strong interest in the Fund’s capital raising from our investor bas given the attractive forecast returns, the strong pre-sales we have achieved to date and its location in one of Australia’s fastest growing areas” said Mr Paramor.

Mr Matthew Belford, ID-Land Director said “We are pleased to be continuing our involvement with Folkestone and to be partnering with the Folkestone Wollert Development Fund on this exciting new residential project. This is our fourth partnership with Folkestone or one its funds, and we look forward to working with them to deliver quality residential master planned community in Melbourne’s rapidly growing northern suburbs.”

Folkestone (ASX:FLK) is an ASX listed real estate funds manger and developer providing real estate wealth solutions. Folkestone’s funds management platform, with $1.2 billion under management, offers listed and unlisted real estate funds to private clients and selected institutional investors, while its on balance sheet activities focus on value-add and opportunistic (development) real estate investments.

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