Your Private Equity Experts
Exclusive private equity opportunities, ideal for short-term growth and tailored to Self Managed Superannuation Funds
Your Private Equity Experts
Exclusive private equity opportunities, ideal for short-term growth and tailored to Self Managed Superannuation Funds
Specialists in Private Equity Opportunities
Morgan Piper offers private investment opportunities suitable for Self-Managed Superannuation Funds (SMSFs). These investments include:
- A term, usually lasting 12 to 24 months.
- An interim dividend quarterly and a final dividend annually.
- A share of the profit available.
The Typical Type of Opportunities
We Source Are As Follows:
Real Estate enhancement
Small property development projects
Final stage litigation funding
Pre IPO capital
Enhancing Land Values & Property Development
We use a tried and proven approach to enhance property. It is straightforward to achieve when you have access to these opportunities.
If you were to talk with any experienced property investor, they will tell you the most profit is made between the value of raw land and being shovel ready for development.
Let us explain:
Raw unimproved land is at the lowest point of its value cycle.
Secure the land at this point, deploy capital to fund the approval process. At this point the land transfers from vacant raw land to a development approved site, and at this point the land value increases dramatically.
In simple terms, the land when it has been enhanced, improves in value
By Way of Example
We enter a contract, usually settlement is subject to receiving the desired approvals.
The land is usually contracted with the vendor by lodging in the solicitors trust account a 5% deposit. If the contract price is $1 million the deposit is ($50,000) with the balance of the land settlement to happen 60 days after receipt of the Development Approval.
The development approval process is expected to take 9 to 18 months and cost approximately $500,000. So far, $550,000 has already been spent. The plan is to obtain approval to build 25 townhouses on the land. Once approved, the land’s value increases to $2,125,000.
If we proceed with the settlement, the total cost will be $1,550,000, creating a value uplift of $575,000. The business strategy is to sell the land with the development approvals in place, rather than completing the build.
With an initial investment of $550,000, the projected profit is $575,000, giving a return on investment (ROI) of 104.5%. If the process takes two years, this equates to an annual return of 52.27%. This approach leverages private equity funding for real estate investments.