Investor applies for units in Equity Trust
Equity Trust makes non-recourse loan to Property Trust
Property Trust Buys land, obtains construction funding, develops property, pays costs and sells on completion
Property Trust repays bank and Equity Trust loans then distributes profit to Equity Trust
Equity Trust pays administrative costs and distributes profits to Investor
Site Analysis & Acquisition
We understand that for first time investors, it can be when are we to see a return?
The following process is an indicative flow of work that is required to be undertaken for the sale and completion of the project. Please bear in mind that some of the activities may take longer due to circumstances outside the ordinary course of doing business.
n the last 10 years, our average return to our investors is 37% across 7 different projects.
There are always timing issues when dealing with Government and legislation. We need to be aware of the development approvals timeline, the development costs and unforeseen project costs, the sale and current state of economy, the potential (if any) changes in legislation not limited to building codes, council guidelines, environmental laws, etc.
There is options available however penalties and costs may be incurred.
Our diverse team of professionals have experience in various industries and an in depth knowledge of medical, commercial and retail.
Armada Property Services Pty Ltd is a wholly owned division of the Armada Group of Companies. Our Armada Property Services division provides project management services to a range of property development opportunities. The division only deals in Commercial Property developments and not Residential.
Armada Financial Services Pty Ltd (also a wholly owned Company) holds an Australian Financial Services Licence (AFSL) No. 508793 allowing it to raise capital from sophisticated investors under Corporation Law for the various Property Development opportunities.
We identify potential sites and perform a back of the envelope feasibility study. If certain parameters are met, we refine the feasibility to develop a comprehensive schedule of tenants based on the recommended usages and up to date market information. This forms the basis for projected cash flows and profit & loss forecasts.
If the detailed feasibility achieves certain parameters, an offer is made on the site to secure it under contract which, if accepted, precedes a due diligence period. This included achieving approvals from council, pre-selling/leasing as much of the proposed building as possible, agreeing the terms of a fixed price construction contract and reducing the risk of the project as much as possible.
Once the due diligence has completed satisfactorily, we issue an expression of interest to sophisticated investors and raise capital for the project. We oversee negotiations pertaining to construction funding with the Lender, purchasing the land and commencing construction.
We then project manage the satisfactory completion of the building and monitor the commencement of leases, ensuring all tenant’s requirements achieve a satisfactory outcome. We monitor the sales contracts to settlement, repay bank debts and investor capital and deliver the profits to investors.
Armada Property Services are committed to obtaining forecast returns for our investors and facilitating the development of high class amenities in each respective locality.
Since 2016 we have completed 8 Commercial developments with total Sale proceeds of over $40 mil and profit of $6.8 mil to investors in addition to return of their Capital invested ($8.1 mil). Currently we have a further 7 Commercial developments that are in construction phase with forecast Sale proceeds of $32.3 mil and investor profits of $3.3mil based on investor capital of $9.5mil. In addition to this we have a further 5 Commercial properties that we have under contract that we are currently undertaking due diligence activities on. One of these properties is the subject of this email which is the Dalyellup Property Development No.3.