Equiti Capital Successfully Launches Equiti Knock-Down, Rebuild Fund with First 3 Projects Underway

KEY TAKEAWAYS:

• The knock-down, rebuild strategy aims to add value to land by demolishing the existing older-style residence and subsequently designing and building a new, modern residence with the aim of attracting a higher resale price.
• Access to residential real estate assets located within well-established suburbs of Sydney with first two assets already acquired.
• High demand identified for new ready-to-move-in homes in these areas.
• Low-entry point for investors with only $10,000 minimum investment.

The Equiti Knock-Down, Rebuild Fund provides Investors with an opportunity for profit via the strategy of acquiring older-style homes and subsequently knocking-down the existing home, rebuilding a new home and selling, for a profit, upon completion.

Having only been open for a few months, the Fund has already acquired its first two assets within Sydney – in the suburbs of Ryde and Dundas. The Responsible Entity and Investment Manager are continuing to look for more properties that suit the Investment Criteria of the Fund. The Fund will remain open for investment until 30 September 2020.

Demand for new ready-to-move-in homes, coupled with the limited number of new homes available for sale in well-established suburbs of Sydney, has created solid fundamentals for the knock-down, rebuild strategy. Through the careful acquisition, design, development and sale of residential property assets that are suited to this value-add strategy, the Fund aims to create a trading profit from each transaction that can be partially distributed to investors upon the completion of each transaction whilst, through an active reinvestment strategy, also achieving some capital appreciation.

The knock-down, rebuild strategy is a residential development strategy that aims to adds value to land by firstly demolishing the existing older-style residence (the knock-down) and subsequently designing and building a new, modern residence with the aim of attracting a higher resale price (the rebuild).

This value-add development strategy has been popular in Sydney and due to the imbalance between the high-demand for new, modern homes in well-established suburbs of Sydney and the low-supply of new, modern homes available within these suburbs, the Investment Manager believes that a favourable opportunity exists to implement a knock-down, rebuild strategy in identified geographic locations of Sydney.

Equiti Capital Limited and Equiti Funds Management Pty Ltd are specialist property investment managers that aim to achieve superior returns for both retail and wholesale investors through the identification, acquisition, management and development of residential property across the eastern-Australian seaboard, whilst putting investor’s interests at the forefront of all decision making.

Hudson Homes Pty Ltd is a major, multi-award winning NSW home builder with an approved Home Owners Warranty of $125m. As Development Manager of the Fund, Hudson Homes will be responsible for designing homes suitable to the site and location, estimating construction costs, obtaining approvals and to generally manage the construction process on a day-to-day basis.

Benefits of Investing in the Fund:

• Exposure to residential real estate assets located within well-established suburbs of Sydney
• Potential to add-value to the real estate asset by implementing the knock-down, rebuild strategy
• Ability to generate trading profits that can be partially distributed to Investors upon the realisation of profit
• Portfolio diversification which, over time, are intended to be diversified by location and price
• Capital growth potential via an appreciation of the Unit Price of the Fund
• Low-entry point for investors with only $10,000 minimum investment
• Access to an experienced, expert investment management team

 

About Equiti Capital Limited

Equiti Capital Limited is a specialist investment manager that aims to achieve superior returns for both retail and wholesale investors through the identification, acquisition, management and development of residential property across the eastern-Australian seaboard.

Request Offer