Why invest your capital with Vital?
Share in the development process
We offer investors an opportunity to jointly fund the property development process over a short period of time and with a shared return on investment.
Targeted Development Opportunities
The development sites are selected in predictable growth areas with high rental demand ensuring high returns for our investors.
Share industry high returns
Our development fund structure allows property investors to essentially become a development partner and share in the development profits upon completion.
AFSL for compliance
We operate under an Australian Financial Securities Licence holder to provide a fully comprehensive Information Memorandum (PDS) for all investors.
Minimum Subscription $ ,000's
Time for completion (months)
Average Subscription Offer $million's
Development Fund Options
Higher than average returns
With previous returns averaging 15-20% per annum, investing in Development funds provide higher returns than standard property investment.
Anyone can do it
Because we operate under the ASFL holder, this allows minimum subscriptions of $20,000, meaning any investor with this amount in cash can invest.
Shorter Investment Timeframes
Our property developments generally range in duration from 18 to 24 months, meaning you get your return delivered sooner than most property investments.
Your investment is managed
We manage the complete development process that delivers your returns, there’s nothing you need to do except plan how to re-invest your returns.
Investment is held in trust
The development funds are structured using property unit trusts and limited company structures, set up to maximise returns.
Your risk is minimised
All of the risk management occurs before our investors even are presented with our options. We complete due diligence, valuations, feasibilities, contingencies and provide full transparency during the process.
Frequently Asked Development Fund Questions
What is a property unit trust?
A unit trust is a trust in which the trust property is divided into a number of defined shares called units. The beneficiaries subscribe for the units in much the same way as shareholders in a company subscribe for shares.
How is a unit trust established?
Most unit trusts are established by subscription; that is, the initial unitholders (the “subscribers”) subscribe for units in the unit trust, paying a set amount for each unit to the trustee and, in return, the trustee issues those subscribers with the requisite number of units, much like shareholders applying for shares in a company.
The units can be partly or fully paid and can also be divided into different classes with different rights (such as different voting, income or capital rights). However, most units are issued fully paid and generally have equal rights.
What are the benefits of investing into a unit trust?
The main advantage of the unit trust over other types of trusts is that the parties involved are issued with units which (like shares):
1. Define that party’s interest in the assets and income of the trust;
2. Can be easily transferred; and
3. Can be re-acquired (redeemed) by the trustee.
What are the elements of a unit trust
There are a number of elements of a unit trust, including:
1. The trustee(s)
2. The trust fund
3. The unitholders
In addition, for a trust to exist, there must be a personal obligation on behalf of the trustee in respect of the trust property.
Who is the trustee?
The trustee is the legal owner of the trust property (although not necessarily a beneficial owner), and is responsible for managing the trust fund. Being the legal owner, all of the transactions of the trust are carried out in the name of the trustee. The trustee signs all documents for and on behalf of the trust, i.e., in its capacity as trustee of the trust.
What safe guards do I have from the trustee?
The trustee’s overriding duty is to obey the terms of the trust deed. The trustee also has a duty to act in the best interests of the beneficiaries. There are many other duties imposed on the trustee by law.
In summary, these are:
– A trustee must carry out the terms of the trust;
– A trustee must act in good faith;
– A trustee must preserve the trust assets;
– A trustee must exercise reasonable care in the administration of the trust;
– Trustees must not put themselves in a position of conflict of compromise;
– A trustee must keep proper accounts and records.
What is a trust fund?
The trust fund is all the property of the trust including the income accumulated and any other money and property held by the trustee pursuant to the terms of the trust.
Who are the beneficiaries?
The beneficiaries are the people (including entities) for whose benefit the trustee holds the property.
In the case of a unit trust, the beneficiaries are the unitholders. The unitholders have an underlying interest in the trust property.
Development Funds Glossary
An Australian Financial Services Licence (AFSL) is a licence for any Australian businesses involved in the provision of financial services. It is issued by the Australian Securities and Investments Commission (ASIC) as required by the Corporations Act 2001.
The application form associated with the PDS that is filled in to apply (purchase) shares in the investment.
A person or entity who has completed and lodged an Application Form.
The Australian Securities & Investments Commission (ASIC) is an independent Australian government body that acts as Australia’s corporate regulator. ASIC’s role is to enforce and regulate company and financial services laws to protect Australian consumers, investors and creditors.
The property development manager is any party or corporation appointed by the Responsible Entity to undertake the initial project management of a Property and for ongoing development management during construction of that Property.
Means the legal document stating the objectives, risks and terms of investment involved with raising investment in a fund.
Net Development Profit
Net Development Profit of a Property is determined by subtracting the total development costs from the gross sales revenue of a particular asset or Property.
A product disclosure statement (PDS) is a disclosure document for use in offers of financial products to retail and wholesale investors and must contain such information that might reasonably be expected to have a material influence on the decision of a reasonable person, as a retail client, whether to acquire the product (section 1013E of the Corporations Act).
PDS Part 1
The PDS Part 1 contains general information about the Development Fund.
PDS Part 2
The PDS Part 2 contains specific details of the Offer, the Property and the Class of Interests.
Preference shares are issued by companies to raise capital from Investors, generally on a short term basis. Preference shares rank equally amongst themselves, ahead of ordinary shareholders with respect to the payment of dividends and on return of capital upon winding up of the company.
Is a class of share issued on terms that can be redeemed by the issuing company at an agreed value of the shares generally at a fixed date in the future. This can be a way of making a clear arrangement with an outside investor.
Is the date a certain number of months after the date of issue of the Interests and generally the date the returns are paid.
Means the date the improvements on the Land have been completed to the extent that they are reasonably fit for occupation.
Means the holder of Shares in the Company.
A certificate from the Company evidencing the issue of the Share/s to the person named in the certificate.
Application Money in whole or in part that is made for the issue of shares.
The Special Purpose Vehicle (SPV) means a unit trust or company, wholly owned by the Fund, established to purchase and hold Property or Properties and any other assets. In some cases the SPV will be the borrower of any financial accommodation obtained to assist in the purchase and development of that Property or Asset.
Total Development Costs
Total Development Costs means the total of all costs associated in the acquisition of the Property and all associated construction costs of the Project.
DISCLAIMER: The general information on this website is not a substitute for information disclosed with respect to each project and is not a promise of return. Potential investors should carefully read each product disclosure document before deciding whether to invest. Vital Property Group is not authorised to give personal financial advice to investors and cannot recommend to an investor that any particular investment is suitable for their specific financial requirements. Vital Property Group operates under the holder of an Australian Financial Securities Licence number 240506. Under this licence, Vital Property Group Management may provide general financial product advice in relation to securities. It is not authorised to give personal financial advice to investors and so cannot recommend to investors that this investment is suitable for their own specific financial requirements. You should carefully read each product disclosure document for each project in its entirety prior to making an investment decision. Before you invest, you should consult a suitably qualified professional adviser.