ResiBonds for small-scale real estate development projects from AUD $1 to 10 million
Non-bank funding | Fixed income 10% paid monthly | Diversify SMSF portfolio | Raise debt capital
ResiBonds for property development finance
A developer, builder or renovator can issue ResiBonds to fund development of small, medium and large-scale, real estate projects such as high-rise, land acquisition and sub-division and townhouse developments in major Australian locations from Brisbane to Perth.
ResiBonds are ideal financing tool to access alternative capital from the private market where the project owners are unable to secure bank finance.
ResiBonds are flexible financial instruments designed for small-scale property development projects up to $5 million. The ResiBond buyer or investor has the added security of the asset until the bond matures.
In the event of default, ResiBond investors have priority over shareholders in claims on the company’s assets.
ResiBonds to diversify your SMSF
If you are a sophisticated investor or SMSF trustee looking for a high yielding property investment, then ResiBonds may be your solution. Gain exposure to real, direct assets in the property development industry, with fixed yields and terms that are far above the current cash rate, government and corporate bonds or current high yield debt.
ResiBonds offer a fixed interest rate well above bank deposits. These are ideal medium term investments between 12 to 36 months, earning your SMSF an income of around 10% per annum or higher paid monthly or quarterly until maturity. Compare this with current low cash bank deposit returns and government bonds. ResiBonds are an excellent fixed income alternative to be considered.
A ResiBond (Residential Investment Bond) is not a complex Managed Investment Scheme. A ResiBond is a small-scale offer to issue debt securities to sophisticated investors within Section 708 of the Corporations Act.
In comparison a Managed Investment Scheme is used to raise a pool of money from the public to lend out or re-invest on behalf of the unit holders.
Typically, the Bond Issuer has already accumulated interest from the Vendor, Suppliers, Advisers, or Associates of the business or project and needs a compliant structure and framework to attract capital. Or is seeking funding through alternative peer-2-peer networks for joint venture partnerships.
Accrutus Capital provides the legal framework and services for you, the Issuer of the ResiBonds, and assists you in the preparation of a detailed Information Memorandum about the business opportunity that investors will need to make an investment decision.