Investors receive distributions of 9.5% per annum approx
The thing about investments is that regular reliable income can be extracted from a variety of diverse types of properties. When land, building and tenants all co-ordinate together, it can provide a fabulous combination for income generation and equity creation.
In May of 2018, one of the most interesting property investments offered was this investment in Bundaberg. The property acquired was an established entertainment and sporting club & facilities. The club had been operating since 1947 and was the tenant.
The real estate, included a massive land holding on 8 hectares of land, and with so much land, there was a sizable portion not being used by the club which gave investors additional income potential with the further development of the property.
The property was acquired at $10.9M which showed an initial yield of around 10% per annum. It was a prudent purchase because it was valued shortly after at slightly in excess of what the property had been purchased and the increased value, at least on paper, had the effect of adding additional equity for investors who particpated in the investment, right from the very beginning.
Anyway, this investment trust was offered to investors in May of 2018 with the term of the investment of 7 years with cash returns forecasted at 9.5% per annum. The investment is still owned by the reit, and has pretty much kept to that forecast, except for a slight setback with distributions when covid struck and the club wasnt able to open. At this stage the additional land has not been developed, but discussions are ongoing with various potential tenants
So, an investor who invested an initial $50,000 unit investment, received an income of approx. $4800 pa over the term of the investment, paid every 2 months or so. The investment is sheduled to be sold prior to 2025 and investors repaid their investment.
Most investors, invested $100,000 and some invested up to $500,000. This investment closed shortly after it opened in May 2018.
If you would like more information about investing in small reits and syndicates, and or perhaps a copy of the original investment proposal for this investment as a guide, simply click our “ready to invest” button above, requesting same. PS you need to be qualify to be a wholesale investor to participate.