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Rebate Offer
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2.0% (73%)
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Minimum Initial Investment
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$5,000
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Expected Close Date
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CLOSED
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Established by Aspen Group, the Enclave at St Leonards Limited is capital raising to acquire a 10.8 hectare urban zoned parcel of land located just 15 kilometres from the Perth CBD, within close proximity to the renowned Swan Valley wine region and Whiteman Park.
Following acquisition, the project land will be developed into residential housing lots and sold. The term of the investment is estimated to be two years, and after the sale and settlement of all lots within the project, Enclave at St Leonards Limited will be wound up, with all remaining profit and capital returned to investors.
The short forecast investment horizon ensures investors are not locked in for an extended time period.
The offer is already 80% subscribed with the remaining amount still to be raised. This is the final opportunity to participate in this unique land development syndicate.
The investment is partially underwritten by Aspen Group, for up to $3.5 million of any shortfall, subject to the satisfaction of the offer conditions.
Key Features
- Target pre-tax internal rate of return (IRR) to investors of 18% per annum over the life of the project#
- Minimum capital raising level has been achieved – development to commence in March 2011
- Project expected to be completed and returns paid to investors over a two year period
- Project is appropriately zoned for residential development
- Experienced management team with track record in large scale residential development
- Offer closes on 25th February 2011 or sooner upon reaching the maximum subscription level of $11.5 million
Project Land Location
The Project Land is located within West Swan at the gateway to the famous Swan Valley region of Perth, Western Australia (within the St Leonards residential development). West Swan is approximately 15km North East of the Perth CBD in a rapidly expanding residential corridor, which includes the highly successful Ellenbrook Estate 7km to the North.
The Enclave's central location in the Swan Valley wine and tourist region, in close proximity to the major employment areas of Midland and Perth CBD makes it a very well sought after Estate with demonstrated high demand for new housing.
Pre-sale commitments have already been received from reputable builders for up to 60% of all lots.
Investment Manager
The manager of the investment is Aspen Living, a division of Aspen Group. Aspen Living will oversee the project management, sales and marketing of the project land. Aspen Living currently manages a residential estate adjacent to the project land, where it has gained relevant local experience, providing a strong track record to manage this estate.
About Aspen Group
Aspen Group is an ASX listed property investment and funds management group, focused on acquiring quality property assets, and creating and managing innovative property funds and syndicates. Formed in 2001, Aspen has progressed to now be a member of the S&P/ASX 300 index with assets under management in excess of $1.3 billion.
| Key Dates* |
Closing date for applications
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February 2011
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Confirmation of Offer Share allocations
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Within 5 Business Days of Closing Date
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Allotment Date of Offer Shares
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No later than 28 February 2011
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Expected first dividend/return of capital (forecast)
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July 2012
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Expected final dividend/return of capital (forecast)
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December 2012
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*Dates are indicative only. The Manager reserves the right to close the Offer early or to extend the Opening Date or Closing Date of the Offer (as the case may be) without prior notice. Intending Investors are encouraged to submit their applications promptly.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 2.0% of the 2.72% upfront commission on investments in Enclave at St Leonards Limited as additional units. 2020 DIRECTINVEST will retain 0.72% to cover postage & handling, marketing and administration of the fund. No trailing commission is paid on Enclave at St Leonards Limited. |
#The target IRR is based on the fi nancial forecasts set out in Section 6, which are based on a number of key assumptions. A summary of the assumptions used in determining the financial forecasts is provided in Section 6. The forecasts and underlying assumptions have been reviewed by the Investigating Accountant, Ernst and Young Transaction Advisory Services Limited, whose report is detailed in Section 9. As there are many variables in the assumptions a sensitivity analysis has been completed in Section 6.3 which shows the impact on the IRR from changes in a number of key inputs. The forecasts are subject to the risks which are set out in detail in Section 7.
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