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Investment Opportunities in Residential Property Syndicates

Land Development and Residential Property Development Syndicators

EHG's clients and their associates are able to ‘pool’ their capital with others and participate in one or more of EHG's Syndicates. Capital includes savings, property equity and SMSF balances.

The Directors of Empower Housing Group in Qld and Empower Housing Group WA 'EHG' create a range of opportunities that in turn provides returns to investors as a result of indirect and direct property investments.

Participation in EHG's Syndicates are limited to EHG's clients and their associates.

Syndicated properties are acquired by a new company (corporate trustee) that will be the trustee for the unit trust. Investors in the Syndicate subscribe funds and receive units in the trust in direct proportion to their investment. The company which will be acting as trustee of the trust will hold the title to the property “on trust” for the investors in the Syndicate. The corporate trustee will also enter into all contracts related to the project, such as a development management agreement, building contracts, leases and property management agreements.

EHG use Small-scale Private Offerings 'Rule 2/20/12' to Raise Capital

Small-scale private offerings are the most common form of capital raising and do not require a regulated disclosure statement.

A capital raising qualifies as a small-scale offering providing:

  1. not more than $2,000,000 is raised
  2. from no more than 20 investors
  3. in any rolling 12 month period
For this reason, these provisions are often referred to as the ‘2/20/12 Rule’. Offers made under the small-scale private offering exemption are generally done through an informal Information Memorandum or ‘IM’ (see section below).

When counting the number of investors, a number of people are excluded, including those who have agreed to invest at least $500,000, those who receive the offer outside Australia, any officers of the company, and those who have provided a qualified accountant’s certificate evidencing they have earned more than $250,000 for the last 2 years or have net assets of at least $2.5 million (i.e. a ‘sophisticated investor’ or a ‘wholesale client’).

**EHG's offers are not advertised to the public** Click here to view the acknowledgement & waiver

Each EHG offer is a personal offer that can only be accepted by the person to whom it is made. Furthermore, there must be reason to believe that EHG investors are likely to be interested in any offer as a result of some prior connection.

EHG clients and other invited people are generally restricted to family, friends and known business associates.

The Entity used by EHG to Raise Project Funds are called 'Unit Trusts'

EHG uses unit trusts as they are the popular vehicle for raising money, particularly for holding long-term investment assets such as property. This is because the income and capital gains are not taxable to the unit trust, but rather flow through to the unit holders, who pay tax in their own right. A unit holder may qualify for capital gains tax concessions on any gains, and a super fund will only pay tax at the rate applicable to the fund (which may be nil).

**EHG are not holders of an AFSL nor representatives of an AFSL holder**

EHG issues Information Memorandums to Investors - 'IM'

An IM is a document provided by EHG's experienced Directors, to prospective investors to assist in their investment decision.

It provides information about the opportunity being promoted and contains a full, true and complete disclosure of all information which may materially affect value together with providing a complete disclosure of all material facts.

EHG's IM's offer investors:

  • Invitations to participate in EHG created projects by providing equity through the issue and sale of units in the development company unit trust undertaking the project
  • Details of projects including location, project type, background of the developer, investor returns, development timetable etc
  • Sharing in the development profits with the developer subject to the terms and conditions set out in the IM

EHG Principals comprehensively evaluate each proposal

EHG formulates its investment recommendations on an overall assessment of each opportunity. This assessment addresses the following segments of the development process:

  • Highest and best use of the land or property
  • Market analysis
  • Town planning
  • Legal
  • Construction
  • Engineering
  • Return on investment (ROI)

Where the proposal involves participation with another party to the development EHG will also consider the ability, integrity and prior experience of that party.

Project management is undertaken by EHG Principals

EHG's Principals directly manage:

  • End-to-end Land and Property Development
  • Financing (Platinum Mortgage Management is a full services mortgage broker that is part of EHG)
  • Planning
  • Consultants
  • Construction
  • Development
  • Marketing
  • Sales (Empower Housing Group holds full real estate licenses in Qld and WA)

EHG charges project management fees to the unit trust. Returns are disclosed and capped.

EHG are the Project Marketers

EHG is a broad based provider of property sales, marketing and investment services. The company is an experienced Project Marketer and has an extensive knowledge of the local environment as well as the necessary in-house resources to successfully market and sell the finished products for each Syndicate.

EHG provides a comprehensive sales consultancy for land and residential developments from the initial design concepts through to the sale of the very last property.

EHG has an extensive client base of property investors located throughout Australia and provides:

  • An off-the plan sales and marketing service prior-to-project completion
  • Supplementary feasibility and project viability reports
  • Product design advisory with focus on functionality, buyer preferences, product mix, market values and market appeal
  • Pricing strategy and structure
  • Project branding and positioning
  • Marketing budgets and media campaigns
  • Sales display planning and fit-outs
  • Marketing tools and materials
  • Website development and links
  • Market research and trends
  • External sales channels where required

Contact Robert Kirk on 0403 577 353 or to be on EHG's IM register!

Residential Design Codes in WA - click here to open. Or, click here to visit the Gov't website.

Disclaimer: Accessing and using any information from this site is on the condition you read and agree to the following. Before making any financial commitment to any property you should seek professional advice from a qualified and registered financial advisor. While every attempt is made to keep the information accurate and current, this site should be used to locate properties of interest to carry out further investigation as to the viability and suitability of the investment property to your personal situation. Indicative returns on investment are just that ‘indicative’ being based on information provided from third parties in regard to sale price and expected rent to be obtained. They are not deemed to be the final return once all other costs e.g legal fees, stamp duty, rental fees, utilities connections and the like associated with buying a new home are added in. Using links from this site to other web sites and the like means you are accessing information from sites we have no control over, we will not be held liable for any loss incurred from the use of information from this site and outbound linked sites. Management of Empower Housing Group and Empower Housing Group WA April 2014.

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