New Opportunity | 17.6%pa Forecast IRR | Residential Property Development Fund

  • 6 April 2020
  • Publisher:

The directors of IPM Funds Management Pty Ltd are pleased to offer you the opportunity to invest in the IPM Mona Vale Development Fund.

The Fund is a single asset, unlisted trust which is being established to provide Investors with the opportunity to participate in a $11.0 million equity raising, in support of the acquisition and redevelopment of a 2,549 sqm residential development site located at 50-52 Golf Avenue, Mona Vale NSW 2103.

IPM is an established Sydney-based property developer which has completed over 70 successful projects since commencing operations in 1979.

The forecast Internal Rate of Return (IRR) of the Fund is approximately 17.6% p.a. (pre-tax, net of fees).

IPM has won over 25 industry awards for excellence in residential projects over the past 40 years.

Register Interest

Investment Strategy

The Fund’s investment strategy is to invest the proceeds of the equity raising for the purpose of carrying out a property development project.

Project Summary

IPM is proposing to redevelop the property into a boutique residential development comprising of 14x luxury three-bedroom apartments.

Contracts to acquire the property were exchanged in November 2019.  A development application will be submitted to Northern Beaches Council in April 2020, with approval anticipated in Q4 2020. Following DA approval, the apartments will be pre-sold and construction will commence.

The project is expected to complete in Q4 2022.

Forecast Returns

The forecast Return on Equity (ROE) of the Fund is approximately 36.0% (pre-tax, net of fees).

This is equivalent to an Investor Internal Rate of Return (IRR) of approximately 17.6% p.a. (pre-tax, net of fees).

Term and Exit

The Term of the Fund is estimated at 30 months from first instalment.

Equity and profits will be repaid from settlements of the apartments at completion of the project.

Team

The team is led by Steven Sroba, Chris Webster, Alek Novakovic and John Cardamis – experienced
property professionals with backgrounds in property finance, construction, and accounting.

Track Record

Established in 1979, IPM has become one of Sydney’s most experienced and respected fund managers and property developers, successfully delivering more than 70 projects via managed investment syndicates on behalf of wholesale and HNW investors.

Investment Offering

The offer is for 11 million ordinary units of $1.00 each in the IPM Mona Vale Development Fund.

Investment is open to individuals, self-managed super funds, trusts and companies.

Register Interest