Enhanced Land Fund (ELF)

Disclaimer: This webpage is a general overview of some features of the Fund and associated operational entities registered in Australia. The information is primarily concerned with describing the approach to investing in potential property development land in Australia. The actual Portfolio will vary from time to time in accordance with the Portfolio management model and associated suite of policy documents. The content should be considered as conceptual to provide an overview of these features. The actual performance of the Fund may be more or less than the forecasts presented. It is not intended to be financial advice, nor it is an offer to invest nor a representation or recommendation to any person other than the information contained in the Product Disclosure Statement.

The Enhanced Land Fund (ELF) is a registered managed investment scheme in Australia. ELF is an actively managed portfolio of Australian Land Sites suitable for property development. The portfolio diversifies types of risk and returns and is designed to provide periodic liquidity to meet withdrawal requests. The annual distribution of Fund income is forecast in a range between 15% – 25% pa. Where possible the Investment Manager prearranges the disposal of land before acquiring land in the portfolio, which is intended to reduce the portfolio exposure to property market price cycles.


INVESTMENT OBJECTIVE

The Enhanced Land Fund Unit Class (ELF) provides Investors with indirect exposure to an underlying diversified Portfolio of Land Sites suitable for property development (but not to the property development stage itself) in Australian residential, commercial and industrial property. The investment manager will seek to acquire selected Land Sites and improve their value for property development. The Portfolio will then selectively dispose of the enhanced Land Sites for a profit to property markets in general or to a pre-arranged panel of qualified property developers.


ACQUISITIONS

Industry research indicates that supply for new property in Australia is many years behind demand from a macro point of view (example source: CoreLogic RP Data Property Data and Analytics Reports). This undersupply is a strong driver for opportunities to acquire targeted development land below valuation, for example, local authority land release initiatives, developers in corporate distress, mortgagee sales, and general market timing.


DISPOSALS

Opportunities to enhance the value of land are also strong. For example, development land can have its value enhanced through re-enlivening development applications, change of use applications to higher value stock, reconfiguring a lot to produce staged releases, improving efficiency of designs for higher lot yields, and other methods which can significantly increase the value of land. The probability of local authority approvals can usually be clearly known or assessed before the acquisition, reducing the risk that the enhanced value cannot be achieved.


Read the Product Disclosure Statement to get a fuller understanding of the Fund. The objective return and distributions assume a regular turnover of assets in the Portfolio. The actual rate of return may be more or less than this range at times such as periods when the Portfolio is acquiring more assets than it is selling, or where transactions involve larger assets of the Portfolio.