HS Consortium targets 15% p.a. with new development fund

Core Property has reviewed the "HS Consortium 382-386 Burwood Rd, Hawthorn Development Trust"

The offering is from HS Consortium, a funds management business formed in 2017. The directors of HS Consortium have been involved in the acquisition, development and management of over $3 billion of real estate in Australia over more than 25 years and have undertaken a number of successful residential developments across Melbourne.

The Trust is offering up to 9.8 million units at $1.00 per unit to support the construction of a luxury residential apartment complex in Hawthorn, located 6km east of the Melbourne CBD.

The Manager is targeting an Internal Rate of Return for investors of 15% p.a. over the forecast 18-month period to March 2020, equivalent to a final payout of $1.23 for each $1.00 invested.

The development risks have been minimised by the Manager.

  • All development approvals are in place, and demolition works commenced in August 2018,
  • All 21 apartments in the complex have been pre-sold to owner occupiers with 10% deposit taken,
  • A fixed price construction contract has been agreed, and
  • The remaining 2 retail spaces on the ground floor are expected to be sold closer to completion in March 2020.

The investment is open to wholesale investors only, with a minimum investment of $100,000.

Core Property has rated the Fund as RECOMMENDED.