Understand our investment strategy, risk management, security structure, investor eligibility and process for investing.
What does Guardian Funds invest in?
Guardian Funds invests strictly in residential land subdivision projects in Greater Sydney, particularly in the northwest and southwest growth corridors.
What is a land subdivision?
Land subdivision is the development of a large parcel of land (20,000 square metres plus) into typically 40-plus individual lots. This involves building roads and installing service infrastructure (drainage, power, water, communications and gas) – called civil works. This does not include building houses, townhouses or apartments. The individual lots are sold to buyers who take responsibility for building a home. Civil works make up only 10-15% of total project costs compared to 60% for construction in apartment development, making land subdivision significantly less risky than apartments or commercial property developments.
Why focus on land subdivision?
Guardian Funds focuses exclusively on residential land subdivisions because they offer lower development risk, strong demand and shorter investment horizons. Construction costs account for around 15% of total project costs, compared with approximately 50% for multi-residential developments. 77% of Australians prefer living in a house rather than an apartment, supporting strong demand for residential land. Land subdivisions also offer a relatively short investment horizon of approximately 12–36 months.
Is this a property purchase?
No, it is not a property purchase. These are wholesale Preferred Equity Funds where you are investing capital to participate in a property development project and, in return, receive a return on your investment.
Why does Guardian Funds invest in Sydney?
The Australian property market does not move in unison. Guardian Funds has an investment mandate to partner with leading Australian land developers in high-growth and low-supply markets that deliver value. That mandate has driven investments in Sydney’s northwest and southwest, being supply-constrained regions with consistently strong demand, low price volatility, and significant infrastructure investment.
When does Guardian Funds invest in a project?
Investment is made when projects are de-risked. Typically, this is when a Development Application is approved and the project is ready for construction. If Guardian Funds can be made confident of the compliance of a development application or that planning risk can be mitigated, it may, on select occasions, invest in projects close to having approval.
What does the developer do with the money?
Guardian Funds invests in a single-asset land subdivision. The developer uses these funds to release its equity in a project which it then uses to facilitate its continued growth. The developer’s equity is effectively replaced by the Guardian investment.
How does Guardian assess each project?
What due diligence is undertaken? (video)
How do you assess and mitigate risks?
What happens when a project is delayed?
Has there been any defaults in either interest or principal repayment?
How is my investment secured?
What are Preference Shares?
What is the developer guarantee?
What happens if the developer defaults?
What are your rates of return?
Are returns fixed or targeted?
What is the duration of a fund?
When and how are returns paid?
What happens at maturity?
How does Guardian Funds monitor investments?
How often do investors receive updates?
What information is included in reports?
Who can invest?
What is the minimum investment?
How do I invest?
What are the fees associated with my investment?
What documents will I receive once I’m invested in a Fund?
Our team can provide further information and discuss the specifics of our current investment Fund opportunities.
