Residential landbanking crowdfunding opportunity in fringe Badgerys Creek farm
The Sydney investment management firm KSI Investments has acquired 11.55 acres of land in Rossmore, in South-West Sydney which will be part of the Sydney Landbanking KSI Investment Fund.
The land is located 5 kilometres from the planned second airport at Badgerys Creek.
It is expected to accommodate between 110 to 140 houses once rezoned which is expected to occur over the next five to seven years.
The deal, brokered by KSI Investments as an off market transaction includes two adjoining pieces of farm land.
It has been structured under an options contract with settlement to occur within the next six month.
Robin Luo, CEO of KSI Investments says investing in landbanking has been traditionally limited to wealthy investors and property developers.
"However, KSI Investments has opened up this sector to retail investors via this Australian first, with a minimum of $2,000 investment under a retail managed fund structure,” Luo says.
The KSI Sydney Landbanking fund is a retail managed fund overseen by ASIC.
KSI Investments has engaged Perpetual Australia Limited as custodian for the fund, named the Sydney Landbanking KSI Investment Fund.
The fund is able to accept investment from SMSF investors as well as private investors, companies and trusts.
Using the investment registry services of DomaCom Limited, investors are able to trade units in the fund freely, meaning they have liquidity before the eventual land sale after rezoning occurs.
KSI Investment, charge a 25% annual management fee and 20% performance fee on the eventual sale of the land.
DomaCom is working with KSI investments to bring this Rossmore/Badgerys Creek land banking crowdfunding campaign to investors.
Once the land/campaign is acquired KSI have the skillset to manage the opportunity through subsequent phases of development to extract additional value.
