Your chance to profit from low risk and large-scale property developments - Property Development Funds.

Property developing is a rapid road to wealth

 Do you know who the richest people are in Australia and how they create their wealth so fast? Check the Forbes Australia’s richest list and you will find a string of property developers topping the list. Four of the top 10 richest Australians made their wealth in the property industry and retain billionaire status even amid the uncertain economy and global health crisis, while almost a quarter of the richest 200 built their empires in the property sector. There is no doubt that property development is the number one source of wealth and is a rapid road to wealth. 

Top 10 industries by main source of wealth

According to AFR, Property industry is the number one source of wealth.

Importance of risk control of development projects

Is property development profitable? Yes, but it’s also well understood by many investors that with the high potential returns offered, it should come as no surprise the risks can also be significant. Development risks come from several aspects such as planning, funding, project management and construction etc. Less expertise, insufficient capital, limited experience, narrow the access of investors who are willing to participate property developments. But Wharton, we are offering an investment solution to these investors. 

 Our solution to deliver superior returns while maintaining appropriate level of risks – Wharton Property Development Funds

Our Property Development Funds offer an ideal investment solution which enables investors participate in property development and share project profit, meanwhile minimizing risks, by strict project screening, careful due diligence, rigorous quality control and project management. 

A property development fund is a managed investment scheme (MIS) that opens a channel to investors to access to rare opportunities to participate in large-scale and high-quality property development through either debt financing arrangements or direct equity investments. Strengths of investing through Property Development Funds are outlined as follow. 

Strengths of participating in property developments through Property Development Funds  

1. A rare opportunity to access property developments that is otherwise inaccessible without a large capital outlay. 

Property developing is one of the most profitable businesses, but the business is inaccessible for most people because it is a capital-intensive business and requires development expertise. People who want to become property developers and create wealth need to prepare a large amount of money as cornerstone fund for land purchase, design, planning, and development applications before they can make any pre-sales and seeking debt funds. 

Property Development Funds bring unique opportunities to investors who want to participate in development projects and seek for attractive returns but without a large capital outlay and experiences. Besides, investing through the fund also allows investors to choose development funds that invest in a single development project or a diversified portfolio of projects in different types of property and/or different geographical locations.

2.  Experienced developers with strong track records 

We have a well-established network connecting with top-tier consultants in the industry, which brings us the latest insights of the market and understanding of the best practice in the industry. These experience and knowledge enable us to evaluate the qualities of developers in a more effective but rigorous way. Developers’ capability, experience, reputation, and financial conditions are carefully investigated through our due diligence procedures. 

For example, in recent, a 296-unit premium apartment project developed in Castle Hill – known as ‘Chateau’, has been added to our project pipeline. The project will be delivered by an experienced Sydney-based developer Bridgestone Projects together with a collaboration with the highest calibre consultants. PTW, which is one of the top tier architects in Australia with over a hundred years of history is appointed as architects; Westbourne is the builder, which has a reputation for building landmarks on schedule and on budget completion together with a comprehensive after sales services delivering a seamless transition to new owners and occupiers; DKO, which is an award-winning team is appointed as interior designer; RPS, founded in 1970 by a passionate team of academics in Oxfordshire is appointed as landscape designer of the project. As you can tell, this is one of the best development teams that you can put together in Sydney. We believe the team has the capability to successfully deliver a remarkable landmark project to the community and a great return to our investors.     

We refused to expand our fund portfolio in an aggressive way. Instead, we grow and build our reputation in a sustained way, to make sure we deliver the most appropriate projects to our investors with an acceptable level of risk. 

3. Project location & quality control

Projects in prime location, i.e., proximity to metro stations, shopping centers, schools, job centers, hospitals and parks, indicate strong demand and lower risk. Besides, because prime locations are more appealing to developers, only the resourceful developers have the capability and fund to secure the best sites, which is a side indication of developers’ competences. Quality is more related to experience of construction team and developers’ value. The developers that we are working with are all reputable developers in the industry with many years of track records and have successfully complete many high-quality projects in the past.  

In our pipeline, projects are located in high demand, high population growth region that are located within government strategic planning area and are therefore expected to see high capital growth potentials, such as the precincts alongside the Sydney Metro Northwest project, i.e., Chatswood, Castle Hill, Kellyville, Rouse Hill and Cudgegong Road. The sites were secured by farsighted and resourceful developers even before government rezone, by which the developers locked land costs at a feasible level and would be able to take first-mover advantage before other developers jump in the market. 

Sydney Metro Northwest Map

Chateau Project Site Location 

4. Access to a team of experts in property fund management which providing robust risk management and protection for your investments

Wharton Capital’s executive team has over 20 years’ experience in real estate fund management and property development finance, with funds investing across capital structure, i.e., through senior debt, mezzanine debt, preferred equity and equity. Since inception, Wharton Capital has successfully funded over 18 property projects with project value of $718 million and delivered average annual return of 10% to our investors.

We manage risks while delivering superior return. Wharton has deep understandings and insights to Australia’s property market, and we value investors’ requirements, which enables us to find the suitable opportunities for our investors and make sure the opportunities are in demand. Leveraging on extensive experience of property development and property management, our team will conduct rigorous due diligence with detailed analyses on each project to ensure risks are well identified and are under control. By investing through Property Development Fund, investors have the access to a group of professional and dedicated experts who will look after investors requests, closely monitor the risks and performance, and provide robust protection to investors’ interests.

An exciting new investment opportunity – Chateau Monthly Income Fund

After couple of months preparation, we will be introducing a rare investment opportunity to our investors soon - Chateau Monthly Income Fund. The initial fund size open for subscription will be $20m, featured by unique terms - monthly distribution, short lock period (6 months) with flexible option to extend by rollover/reinvestment and receiving compound interest, which provide investors with stable stream of return and flexibility. By investing through the Fund, investors will have the access to a team of experts in the industry, which will manage risks while deliver superior returns to the investors. If you are interested in the opportunity, please contact our team for more information info@whartoncapital.com.au.