Valad Opportunity Fund No. 12 (VOF12)
About VOF12
VOF12 is the latest in our series of funds offering retail investors the opportunity to participate in property development and repositioning style returns. VOF12 will provide investors with the opportunity to gain exposure to five development and value adding assets located in Queensland, New South Wales and Victoria. Based on the target returns from these assets, VCML is targeting for VOF 12 to meet or exceed an internal rate of return of 17% before tax but after fees and expenses. Valad’s success in generating managed fund returns is evidenced by Valad achieving a weighted average project level equity IRR on completed projects of 28.7% (post fees and pre tax) in the Valad Opportunity Fund series.
Project Portfolio
- Industroplex, Mackay, Queensland – a secured contractual interest in the development of 60 hectares of “heavy industrial” land being subdivided into 79 lots and sold over five stages, with frontage to the Bruce Highway
- Pine River, Griffin, Queensland – an economic interest in the repositioning of two adjacent parcels of land comprising 41 hectares in total for which a development approval is being sought for a master planned residential estate
- Yarra River, Alphington, Victoria – an economic interest in the repositioning of a one hectare site overlooking the Yarra River and adjacent parkland for which development approval will be sought for a medium density residential development
- Harvey Norman Centre, Toowoomba, Queensland – a bulky goods shopping centre being refurbished and repositioned to capture positive rent reversion following the recent departure of a major tenant
- Clydesdale Place, Pymble, New South Wales – a secured contractual interest in a residential development involving the construction of 34 high quality apartments spread over five levels.
Investment Highlights
- Target IRR of 17% plus - an opportunity to earn higher returns than those which investors would normally expect from investing in a traditional property trust holding core assets with limited development/repositioning potential
- High asset backing – pro-forma Net Tangible Assets on allotment of $0.936
- Short-term investment horizon - expected four and a half year investment term, with the majority of Projects forecast for completion within the Fund’s first two years
- Diversified portfolio – five projects located across three states and offering exposure to three property sectors
- No direct exposure to the volatility of the listed property market – unlisted fund which is fully invested and financed within Australia
- Strong performance track record – Valad has completed and exited from five VOF projects to date, generating a weighted average pre-tax IRR of 28.7%
- Strong alignment of interests - Valad will retain a significant holding in the Fund for the life of the Fund and is further incentivised through a tiered performance-based fee structure
- Independent research – Property Investment Research (“AA”) and Lonsec (“Upper Recommended”)
Press Releases
Valad Launches Valad Opportunity Fund No.12
Valad Opportunity Fund No.12 Capital Raising Completed
Investor Materials
VOF12 FY2007 Annual Report Cover Letter & VOF12 FY2007 Annual Report
Valad Opportunity Fund No.12 PDS
PIR VOF12 Independent Research
Lonsec Master Report VOF No.12
More information
For more information you can contact Peter Larcombe, Fund Manager at peter.larcombe@valad.com.au or on +612 8257 6735.