Novella Capital The Wattles

Novella Capital The Wattles Austral Ltd (Company) is issuing Redeemable Preference Shares to raise funds that will be provided as a loan to EIGHT AUSTRAL PTY LTD (ACN 613 106 513) (“Main SPV”) for the development and sale of 28 residential land lots at 145 Eighth Avenue, Austral NSW 2179 (“land”).


Days Left


$5000

Min Invest

12-15

Months

15-25%

Expected Return
$276,999 raised of $2,000,000

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* Note that this is a No Obligation Expression of interest, you get to review the Prospectus before making any decisions
** The information provided on this webpage is only a summary of the offer and may not contain all the information needed to determine if this offer is right for you. You should read the Prospectus in its entirety which can be downloaded in the Downloads section below as well as on the Project application page once you press the Invest Now button.

Downloads



Reference Documents





Project Summary


for whom

Overview

We offer a rare opportunity to invest in and be part of the development of 28 new residential lots at the sought after new location at Austral, New South Wales. Austral is located 42 kilometres south-west of Sydney, serviced through great transport links by road and rail to the city, is close to Sydney’s new planned second airport and is one of Sydney’s defined priority growth areas.


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Returns and Timeframe

The period for your investment is 12-15 months, with all investments plus interests being paid back by September 2018. Your investment will attract a fixed dividend over this timeframe, depending on the level of your investment. The returns are as follows:

Security

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Security

The redeemable preference shares you will receive for your investment as security rank senior to ordinary shareholders of the company for returns and distribution. The funds raised through this issue will be provided to the developer of the project as mezzanine debt capital. The terms and conditions of this loan are secured with a lending agreement between Novella Capital The Wattles Austral Ltd and Eighth Avenue Austral Pty Ltd as the developer. The mezzanine debt ranks above ordinary shareholders of the development company and below any first mortgage borrowing taken by it.

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Suburb Profile




145 Eighth Avenue, Austral, 2171, Australia



for whom

Priority Growth Area

The suburb of Austral is located in the Western Sydney Priority Growth Area, 42 km SW of Sydney CBD. It is part of Liverpool council and close to Badgerys Creek, the planned new airport for Western Sydney which the government has now committed to. Austral is designed to be a mainly residential area, with neighbourhood centres serving immediate needs of the residents and a major town centre around Leppington station. A 220 hectares area will provide a concentrated space for a major part of the 13,000 jobs coming to Austral and Leppington North, without interfering with the quality of life in the Austral residential area. Together with 135 hectares open space and 116 hectares protected vegetation and riparian corridors the area will transform into one of the most liveable residential areas of Sydney, with major infrastructure projects planned or in construction for the area.

Marketability

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Badery's Creek Airport

The Australian Government has announced that it will build the Western Sydney Airport at Badgerys Creek. The airport promises to be one of Australia’s most exciting infrastructure projects in decades and will become Western Sydney’s international gateway. Construction will start in late 2018 and the airport is planned to operate from 2026. Already during construction, thousands of jobs will be created locally with 20,000 new jobs created by 2030. The airport will be the catalyst and a major driver for Western Sydney’s economic future. Austral is ideally located to benefit from this increase in economic activity.

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The Project


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Location


The land is ideally located in the new priority growth area of Austral: firmly within the residential precinct with quiet, residential streets, close to shops, cafes, schools and transport. The Wattles are:

- 2 km to Leppington train station which is part of the South West Rail Link. From here frequent services connect Austral with Liverpool and Sydney CBD.
- 850 mtr to the Austral local shops including IGA, Austral post office, Austral pharmacy, the Medical Centre and several eat-in or take away places
- Within walking distance to Austral Public School, the Unity Grammar College and St Anthony of Padua Catholic School.
- Easy access to M5 and M7 ramps and newly upgraded Bringelly Road
- 13.4km drive to Liverpool CBD and about 13 km drive to the future Badgerys Creek airport

The block comprises an area of 1.21 hectares (3 acres) and is easy to build on. The block will be subdivided in 28 fully serviced, residential Torrens Title lots. The lots are sold as land only (leaving the choice of builder up to the buyer). Furthermore, there is an option to buy the land as part of a house and land package with a highly reputable builder.

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New Railway Station


LEPPINGTON STATION AND SOUTH WEST RAIL LINK
Southwest Rail Link is a new, 11.4 km double track railway with stations in the suburbs of Leppington and Edmondson Park and connects with the rest of the Sydney rail network, providing services to Liverpool and the city via the Airport, Inner West & South line. The project was completed in 2014 and the services are running. Leppington Station has a large capacity, even after the planned extension of the line to Badgery's Creek Airport and beyond with ample commuter car parking available.


expected returns

Major Town Centre

LEPPINGTON MAJOR CENTRE
An area of 400 hectares surrounding the new Leppington train station will be the home of a new major town centre. Leppington Major Centre will be the central focus for the 300,000 residents of the South West Growth Centre. It will be the key destination providing jobs, retail, bulky goods, parks, industrial land, housing and commercial activities. It will connect the South West to Sydney through its railway station and bus interchange. The mix of uses will support up to 13,000 jobs. Leppington Major Centre will be built around Leppington Station as its focus as the main transport hub, with additional easy access via the upgraded Bringelly Road.

returns paid as

Roads Upgraded

MAJOR ROADS ARE UPGRADED
The Australian and NSW governments have committed $ 3.6 billion to the Western Sydney Infrastructure Plan, a 10 year road investment program. This program will directly benefit the new developments at Austral. Key for the predicted increasing population in Austral is the upgrade of Bringelly Road between Camden Valley Way and The Northern Road, providing easy access to the M7. Stage 1 of this project has started in January 2015 and is on schedule to finish late 2017, and stage 2 is under way. 

Taxation

Great Parcels of Land


GREAT PARCELS OF LAND FOR HOME OWNERS OR INVESTORS
The original block provided the opportunity to subdivide it into 28 fully serviced, Torrens title land lots of optimal size that are easy to build on with good access and great frontage. These features and the close proximity to shops, cafes, schools and transport ensure a high demand from first home buyers and investors.

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Investment Profile


proposer

Current Status


PRE-SALES ACHIEVED
Demand for the 28 lots is very high and has resulted in more than half of the 28 lots already sold off-the-plan. There is more interest from additional buyers for the remaining lots.

DEVELOPMENT APPLICATION IN LATE STAGE
In March 2017, the DA for this project has been launched with Liverpool council under DA number DA-195/2017. All questions of the council have been addressed and the approval is expected to be granted in September 2017.



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Risk


All investments carry a risk. There are a number of risks associated with an investment in the Company. Some of the key risks that may impact on the value of your investment in the Company include: 
PROPERTY MARKET DOWNTURN RISK - In recent years Property prices have grown significantly, particularly in Sydney and Melbourne. This has led to a concern that a bubble is forming in the Property market. While the principals of this project believe that this undertaking will be profitable a rapid downturn in investor sentiment can see reduction in the prices that may be achievable on sale of the developed land lots or lead to failed settlements of completed sales. This would impact investor returns adversely as the profits available for distribution could be lower.
CONSTRUCTION DELAYS AND COST BLOWOUTS - Weather delays, Industrial action, delay from contractors, soil issues and a number of unforeseen factors can all cause stoppages of work as well as increase the costs required to complete the construction. This can delay the project, increase the costs or reduce the return available to investors. While potential delays due to above mentioned factors are beyond the control of the Main SPV, a 3rd party Quantity Surveyor will be appointed to assist management against construction costs blowouts.
INTEREST RATE RISK - Property prices are often susceptible to interest rate changes. Lower interest rates can lead to more purchasers entering the market driving the prices up and vice versa. Any hikes in the interest rate by the RBA can adversely impact the project by making it harder for potential buyers to access funding to purchase the property. This will reduce the sales proceeds and may impact the return available to investors.
BORROWER DEFAULT RISK - The Main SPV could default on its obligations to the first mortgagee leading to the first mortgagee stepping in and selling the property at auction. 
BANK LENDING POLICIES - In recent months Australian Banks have tightened the lending criteria significantly, especially for foreign home buyers. This has made it harder for both Domestic and International purchasers from acquiring the funding to buy and settle on a property purchase. 
CONTRACTUAL RISK - There is a risk that contractual counterparties, such as any technology developers and other project contractors, may default on their obligations to the Company thereby leading to delays in completion of the projects or a potential loss of capital and/or income.
For an extensive discussion of risks please read the prospectus.






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How To Invest


BankWestpac
Account Name
BSB 032111
Account No
ReferenceNovel (Investor Name)

Invest Now
* Note that this is a No Obligation Expression of interest, you get to review the Prospectus before making any decisions

Project FAQs


Is the return per annum or absolute return?

The returns figures provided are absolute returns targeted by the Company

Is the investment liquid?

No, the investment is not liquid, however if you find a buyer for your shares, the company will facilitate update of its share registers accordingly

EXPLAINER VIDEO