For most new apartment buildings, the Owners Corporation starts life with little more than a bank account and the first quarterly strata levies.

At <a href="https://www.apartments.com.au/buildings/9-gay-street-castle-hill-9-gay-street-castle-hill-nsw-2154">9 Gay Street</a> in <a href="https://www.apartments.com.au/developments/castle-hill-nsw-2154">Castle Hill</a>, it starts with around $7 million in reserve.

It's an unusual legacy of what was once one of Sydney's highest-profile apartment remediation projects. When the development, originally known as Skyview and built by disgraced developer Top Place, came under scrutiny by then NSW Building Commissioner David Chandler, an $11 million remediation bond was negotiated to ensure any building defects could be fully rectified.

The building underwent an 18-month remediation program, during which around $4 million of that bond was spent bringing the building up to the standard it should have been in from the outset.

After extensive inspections, all active rectification orders have been lifted. What's more, around $7.2 million remains secured for the Owners Corporation for the next 15 years.

In a twist few would have predicted, what began as a significant concern for purchasers has left the building with something almost unheard of in the apartment market: a multi-million-dollar financial reserve from day one.

[smartcode_project:default project_id=147685 project_image_fid=359136]

<a href="https://www.apartments.com.au/project-marketer/equitifund-group">Equitifund</a> Executive Chairman Greg Huxley said the structure offers buyers a level of certainty that is difficult to replicate.

"The $11 million bond established for the Skyview Castle Hill development represents exceptional value, providing genuine financial security for purchasers," Huxley said.

"Unlike a standard insurance policy, this bond consists of real funds held in trust for the Owners Corporation, offering a tangible layer of protection and added peace of mind."

The apartments themselves have been designed with a focus on practical, contemporary living. Interiors feature Smeg appliances, stone benchtops, tiled living areas, carpeted bedrooms, 2.7-metre ceilings, floor-to-ceiling glazing, and ducted heating and cooling throughout.

Residents also have access to a range of shared amenities, including two rooftop barbecue areas, a swimming pool, children's playgrounds, secure building access, storage cages, and visitor parking.

The location continues to be one of the project's strongest drawcards. Castle Hill Metro Station sits virtually on the doorstep, providing direct connections across Sydney's expanding Metro network, while Castle Towers offers extensive retail, dining, entertainment, and service amenities within walking distance.

[smartcode_project:default project_id=147685 project_image_fid=359127]

The building, now named after its location at 9 Gay Street, comprises a diverse mix of one-, two-, and three-bedroom apartments starting from just under $600,000.

Equitifund National Sales Director Ben Hamblett said demand in the Hills District continues to be driven by buyers seeking convenience and connectivity.

"Interest from both owner-occupiers and investors in Castle Hill remains exceptionally strong, with buyers consistently prioritising developments in close proximity to the Metro station and Castle Towers Shopping Centre," Hamblett said.

"There is a clear trend in the market, with purchasers seeking convenient access to transport and lifestyle amenities that support a seamless, low-maintenance way of living."

On top of the long-term protection afforded by the remaining $7.2 million bond, Equitifund is offering a limited-time stamp duty rebate on selected apartments.

Eligible purchasers can also secure finance options, including a 3.99 per cent two-year variable rate, loan-to-value ratios of up to 90 per cent, and interest-only lending options through EquitiCredit.

[smartcode_project_cta:default project_id=147685]

Joel Robinson

Why this Castle Hill apartment building starts with a $7 million advantage

For much of the past few years, conversations about Australia's property market have centred on the rapid growth seen in Sydney, Brisbane, Gold Coast, and Perth. <a href="https://www.apartments.com.au/developments/melbourne-vic-3004">Melbourne</a> has followed a different trajectory.

That relative underperformance is now encouraging some buyers to reassess the city, particularly those willing to look beyond short-term market movements and focus on quality property in established locations, along with the long-term growth prospects of a city expected to overtake Sydney as Australia’s most populous.

John Bekiaris, Research &amp; Market Insights at <a href="https://www.apartments.com.au/project-marketer/equitifund-group">Projects by Equitifund</a>, said Melbourne's current position is attracting increasingly sophisticated purchasers.

"Melbourne continues to present one of Australia's strongest long-term investment stories," Bekiaris says.

"While other capital cities have experienced stronger recent growth, that relative underperformance is exactly what's attracting sophisticated counter-cyclical investors."

[smartcode_project:default project_id=1979 project_image_fid=363268]

Equitifund isn't just commenting on Melbourne's property market, it's investing in it.

The Sydney-headquartered capital partner has taken over the remaining apartments at <a href="https://www.apartments.com.au/buildings/victoriana-melbourne-20-queens-road-melbourne-vic-3004">Victoriana</a>, the recently completed glass-encased development opposite Albert Park Lake in Melbourne's tightly held St Kilda Road precinct.

Designed by <a href="https://www.apartments.com.au/architects/rothelowman">Rothelowman</a> and built by <a href="https://www.apartments.com.au/builders/hickory">Hickory</a>, Victoriana places residents between one of Melbourne's most recognised parklands and the CBD, offering oversized two and three-bedroom apartments aimed at owner-occupiers seeking a genuine alternative to a traditional family home.

The development comprises 232 completed residences alongside a suite of resident amenities, including a 25-metre indoor swimming pool, gymnasium, landscaped entertaining areas, resident lounges, EV charging, secure basement parking and a concierge-style arrival experience.

[smartcode_project:default project_id=1979 project_image_fid=363229]

The apartments have been designed with owner-occupiers firmly in mind.&nbsp;Open-plan living and dining areas flow onto generous balconies framing views across Albert Park Lake, Fawkner Park, the Royal Botanic Gardens and the Melbourne skyline.

Kitchens feature Gaggenau appliances, stone benchtops and generous preparation space. Bedrooms include built-in robes, while bathrooms feature full-height textured tiling. Hardwood flooring and ducted air conditioning complete residences designed for long-term living.

Rothelowman's architecture takes its cues from the landscape opposite the site. Sweeping horizontal glazing references the movement of Albert Park Lake, while generous balconies and expansive glazing strengthen the connection between the apartments and the surrounding parklands. The result is a building designed to deliver the scale and amenity expected of luxury apartment living, while offering the larger floorplans increasingly sought by owner-occupiers.

[smartcode_project:default project_id=1979 project_image_fid=363284]

The location is one of Victoriana's defining characteristics. Positioned on Queens Road, residents are directly opposite Albert Park Lake and within easy reach of Fawkner Park, the Royal Botanic Gardens, South Melbourne, St Kilda Road and the CBD. With few comparable development opportunities remaining in the precinct, buyers are increasingly placing value on outlooks that are unlikely to be interrupted by future construction.

Greg Huxley, Founder of Equitifund, believes those qualities become even more valuable over time.

"Premium real estate has always rewarded buyers who take a long-term view," Huxley said.

"Victoriana represents the kind of asset that's increasingly difficult to recreate today, particularly in an established location like Queens Road."

He said rising construction costs are also changing the way buyers assess completed developments.

"When you combine an irreplaceable location with thoughtful architecture and premium finishes, you create something that becomes increasingly difficult to reproduce as construction costs continue to rise."

[smartcode_project:default project_id=1979 project_image_fid=363228]

According to National Sales Director Ben Hamblett, enquiry has been driven largely by Melbourne downsizers and buyers upgrading from smaller apartments.

"Interest in Victoriana continues to build, with strong buyer focus on the larger owner-occupier residences within the development," Hamblett says.

"Enquiry is increasingly driven by local buyers who recognise the rarity of what's on offer: park-facing apartments in an established neighbourhood where new development opportunities are becoming increasingly scarce. At Victoriana, the view is not just a feature; it's an appreciating asset in its own right."

He said interstate enquiry has also strengthened as buyers reassess Melbourne's position within the national property cycle.

"Melbourne currently stands as the most compelling entry point of any major Australian capital, and discerning buyers are beginning to recognise what those who move early always understand: the best opportunities are taken before the price rise confirms them."

[smartcode_project_cta:default project_id=1979]

Why now is the time to buy in Melbourne's premium apartment market

Developers and apartment buyers have a narrowing window of opportunity before Brisbane's Olympic infrastructure pipeline begins competing directly with residential construction, pushing up costs, tightening labour supply and making new projects increasingly difficult to deliver.

While Brisbane's apartment market continues to benefit from strong population growth and limited housing supply, industry research suggests the years leading up to 2027 could prove to be the most important period for developers looking to secure builders and buyers hoping to purchase before the next wave of price increases.

A new Colliers report, Brisbane 2032 Olympic and Paralympic Games: Creating Solutions, highlights the scale of the challenge. While thousands of new homes are planned across South East Queensland, the Brisbane Olympic Athletes Village alone will deliver more than 10,500 beds during the Games before being converted into around 1,750 to 2,000 apartments. Equivalent to almost two years of typical inner-city apartment supply, the project will also absorb a significant share of the construction workforce and building materials.

The broader construction pipeline paints an even clearer picture.

Construction Skills Queensland's Horizon 2032 report forecasts Queensland's annual construction pipeline will average $69 billion over the coming years before peaking at $75 billion in 2027-28. Demand for construction workers is expected to increase by 17 per cent to almost 150,000 people, with the industry facing an annual shortfall of around 19,000 workers that could blow out to as many as 35,000 during the peak construction period.

The Olympic venues, athletes village and supporting infrastructure will account for billions of dollars worth of work across South East Queensland through to 2032, creating intense competition for labour at a time when Australia's residential construction sector is already under pressure.

[smartcode_project:default project_id=150489 project_image_fid=373834]

Colliers Queensland Residential Director Andrew Scriven said the convergence of these projects is creating a clear window of opportunity for both developers and buyers.

"From 2027 onwards, the market will shift dramatically," Scriven said.

"Labour will increasingly be locked into government-led infrastructure and Olympic projects, which means private residential developments will face higher costs and tighter margins. The developers who move now are the ones most likely to get projects off the ground."

Scriven said the same dynamic would also affect buyers, with fewer apartment projects expected to launch once construction capacity tightens.

"If you're looking to change your lifestyle over the next five years, now is your window of opportunity to buy."

[smartcode_project:default project_id=150713 project_image_fid=373827]

Developers are already positioning themselves ahead of that window.

Following the success of Monarch at Toowong, Consolidated Properties is preparing to launch two new Brisbane apartment projects in the second half of 2026. They include <a href="https://www.apartments.com.au/new-apartments/gloriette-30-bedivere-street-yeerongpilly-qld-4105">Gloriette</a> at Yeerongpilly Green, a 25-storey tower within one of Brisbane's key Olympic precincts, and <a href="https://www.apartments.com.au/new-apartments/castile-47-skyring-terrace-newstead-qld-4006">Castile</a>, a recently approved 25-storey riverfront development at 47 Skyring Terrace in Newstead.

Hutchinson Builders will deliver both projects, with early works already underway at Yeerongpilly and Newstead expected to commence later this year.

The timing comes as Brisbane's fundamentals continue to strengthen, with strong interstate migration, population growth and vacancy rates remaining below 1.5 per cent.

Colliers Queensland researcher Pragya Sharma said Greater Brisbane is forecast to require around 40,000 new apartments between 2021 and 2031.

"There's a real mismatch emerging between when housing is needed and when it will be feasible to build," Sharma said.

"As a result, the period leading up to 2027 presents a key window of opportunity for developers to secure approvals, funding and construction capacity, while buyers will have greater choice before supply constraints intensify."

Colliers research outlines a critical pre-2027 window to start residential projects before labour squeeze: now is the time to buy

Developers, buyers on watch in South East Queensland ahead of construction crunch: Colliers

It's taken less than nine months for developer Sherpa Property Group to sell out all 51 apartments in its <a href="https://www.apartments.com.au/new-apartments/flourish-oasis-palm-beach-7-9-sixth-avenue-palm-beach-qld-4221">Flourish Oasis</a> development in <a href="https://www.apartments.com.au/developments/palm-beach-qld-4221">Palm Beach</a>, over a year before its anticipated completion.

&nbsp;

Located at 7-9 Sixth Avenue, the $67 million development has resonated strongly with both local owner-occupiers and downsizers seeking high-quality apartments within walking distance of the beach, dining precincts and everyday amenities.

[smartcode_project:default project_id=151449 project_image_fid=357458]

Christie Leet, Founder of <a href="https://www.apartments.com.au/developers/sherpa-property-group">Sherpa Group</a>, said the sell-out reflected both the strength of the Palm Beach market and the success of Sherpa's community-first approach to development.

"The sell-out of Oasis is a fantastic outcome and reinforces the strong demand we're seeing for thoughtfully designed apartments in lifestyle locations," Leet said.

"From the outset, our vision was to create a development that genuinely enhanced the Palm Beach community while providing residents with exceptional homes and wellness-focused amenities.

"We've been incredibly encouraged by the level of local support throughout the campaign, 72.5 per cent of buyers are locals, with a significant proportion of purchasers choosing Oasis as their future home rather than an investment."

[smartcode_project:default project_id=151449 project_image_fid=357463]

Construction is now progressing following development approval, with trusted builder LPS Group delivering the project and completion anticipated in Q3 2027.

Oasis forms part of Sherpa Group's successful Flourish collection, which has become recognised for its focus on wellness, community and elevated coastal living.

[smartcode_project:default project_id=151449 project_image_fid=357469]

Residents will have private access to a rooftop amenity space featuring a pool, gym, sauna, steam room, hot and cold plunge pools, spa and barbecue facilities.

"The success of Oasis demonstrates that buyers continue to prioritise quality, location and lifestyle," Leet said.

"We are proud to have delivered a project that has resonated so strongly with the market and look forward to bringing Oasis to life for our future residents."

Sherpa recently launched <a href="https://www.apartments.com.au/new-apartments/flourish-soleira-palm-beach-1150-1160-gold-coast-highway-palm-beach-qld-4221">Flourish Soleira</a>, its third instalment of the Flourish brand in Palm Beach following Flourish Oasis and <a href="https://www.apartments.com.au/new-apartments/amargo-6-12-sixth-avenue-palm-beach-qld-4221">Flourish Amargo</a>.

[smartcode_project_cta:default project_id=151449]

Sherpa sells out Flourish Oasis in booming Palm Beach

Urban Property Group's <a href="https://www.apartments.com.au/new-apartments/la-vera-macquarie-park-94-talavera-road-macquarie-park-nsw-2113">La Vera</a> is leading the next phase of Macquarie Park's residential evolution, with the new apartment development set to become the first of several new apartment projects in the precinct to complete.

The 169-apartment building has now topped out ahead of its scheduled completion in the third quarter of 2026, as new residential investment continues to reshape one of Sydney's largest employment hubs into a true mixed-use precinct.

[smartcode_project:default project_id=134951 project_image_fid=368645]

Cox Architecture has designed La Vera to capture the best of its unique positioning on Talavera Road, orienting the building towards Lane Cove National Park.&nbsp;The building features a sculpted northern façade with flowing curves inspired by the surrounding landscape, while its city-facing elevation adopts a more structured architectural expression to maximise skyline views.

"The vision for the project was to conceive a building that adopted an organic and curvilinear form to the northern portion that faces the Lane Cove National Park," <a href="https://www.apartments.com.au/architects/cox-architecture">Cox Architecture</a> Director Felipe Miranda said.

"The residents that reside in the northern portion of the building benefit by having beautifully crafted curved balconies that speak to the natural context and heighten the relationship of their internal living spaces to the external balconies."

[smartcode_project:default project_id=134951 project_image_fid=358802]

La Vera offers a diverse mix of one, two, three, and four-bedroom configurations, with prices currently starting from $740,000. Buyers so far have been a mix of Sydney-based investors,&nbsp;metro commuters, owner-occupiers and downsizers from surrounding North Shore suburbs.

Both investors and owner-occupiers have been drawn to La Vera's proximity to Macquarie University, Macquarie University Hospital, Macquarie Centre and the Sydney Metro, infrastructure that supports both strong rental demand and a convenient lifestyle for residents.

The apartments feature full-height glazing, timber flooring throughout living areas, stone kitchen benchtops, SMEG appliances, floor-to-ceiling bathroom tiling and ducted air conditioning.

Residents will have access to a rooftop recreation level featuring a swimming pool, sauna, barbecue facilities and landscaped relaxation areas, complemented by additional communal space at ground level. Many apartments enjoy uninterrupted views across Lane Cove National Park, reinforcing the project's connection to its natural setting.

[smartcode_project:default project_id=134951 project_image_fid=364551]

<a href="https://www.apartments.com.au/developers/urban-property-group">Urban Property Group</a>, a family-owned developer and builder with nearly four decades of experience, holds a 4.5-star iCIRT rating and was Australia's first developer to introduce 10-Year Latent Defects Insurance (LDI). La Vera is the first apartment development in <a href="https://www.apartments.com.au/developments/macquarie-park-nsw-2113">Macquarie Park</a> approved to offer the additional insurance protection, alongside a five-year warranty on SMEG appliances.

Urban Property Group CEO Patrick Elias said the additional protection reflects changing buyer expectations in the off the plan market.

"Consumers are a lot more weary and a lot more concerned in buying off the plan than they ever have been. Having LDI is a tool to portray the confidence that we have in our product, and a confidence we want buyers to share," Elias said.

Following completion of the building later this year, buyers will move into their apartments well before Christmas.

[smartcode_project_cta:default project_id=134951]

La Vera closes in on completion as Macquarie Park continues residential transformation

Landbanking

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ASIC has successfully sought orders from the Federal Court to wind up the highly solvent Melbourne-based company Aviation 3030 Pty Ltd on the basis that there is a justifiable lack of confidence in the management of Aviation by its directors.
Aviation’s primary asset is property located at 756 Aviation Rd, Point Cook, which it purchased for $7.8 million in 2011 with a view to rezoning the property to increase its value.
In ordering that Aviation be wound up, Justice O’Callaghan stated the case that ASIC makes to wind up Aviation is an overwhelming one.
"Directors have issued to themselves and to their associates large numbers of shares at a gross undervalue; they have fabricated correspondence and invoices; they have provided false instructions to the company’s external solicitors; they duped and misled investors; they entered into related party loans; and they made unauthorised and exorbitant expenditures.
"The audacity of the March 2016 share issue alone could well be enough to warrant a winding up order, but it is not necessary to decide the case on that sole basis because of the many and varied ways that the directors have demonstrated that they are unfit to sit on the board of Aviation."
ASIC’s winding up application was opposed at trial by Aviation and its two majority shareholders (which were companies associated with the directors of Aviation) to which 63% of Aviation’s share capital was issued in March 2016.
ASIC’s application was supported, however, by a group of 12 minority investors who were granted leave to intervene in the proceeding.
The Federal Court also ordered the winding up of an unregistered managed investment scheme operated by Aviation through five separate trusts, as well as their trustee companies, which were also used to raise funds for the Aviation scheme.
John Lindholm and George Georges of Ferrier Hodgson were appointed as joint and several liquidators of Aviation, the Aviation scheme and associated entities.
The orders have been stayed for seven days to allow the defendants to consider an appeal.
ASIC Commissioner John Price said the orders made by the Court will allow an orderly and lawful winding up of the companies and the investment scheme they have operated and will place the future process of distribution of funds to investors into independent hands.
To facilitate the purchase and rezoning of the property, Aviation raised around $10.59 million from approximately 73 shareholders and unit holders.
Many investors in the trusts paid significantly less than $500,000 for their units, and were therefore retail clients rather than sophisticated investors.
In 2011 Aviation had entered into an agreement with auDirect Property Group Pty Ltd to provide project management services in relation to the Aviation land, for an annual fee of $120,000, plus reimbursement of costs. 
On 13 September 2012, the Aviation property was rezoned from Green Wedge Zone to Farming and significantly increased in value.
In March 2016, Aviation issued 63% of its share capital to companies associated with the directors of Aviation.
On 25 October 2018, the property at Point Cook was sold to Shanghai-based developer, Dahua for $135 million through Colliers International and Biggin &amp; Scott Land. The purchaser paid Aviation a deposit of $27 million. The balance of $108 million is payable in April 2023.
Following an investigation, ASIC commenced proceedings in September 2018 to wind up Aviation, the trustee companies and the Aviation scheme.
The defendants resisted the making of the winding up orders primarily on several grounds, including the investors were only ever promised 1/240th an interest for every million shares.
ASIC first wrote to Aviation in December 2015 in relation to concerns about Aviation’s fundraising activities, and it commenced its formal investigation back in May 2016.
ASIC recommenced taking active steps in its investigation in August 2017 which included section 19 examinations, in addition to those which ASIC had previously conducted in 2016, including with Hakly Lao, Khay Taing, Huy Taing, Marintha Lao, Terry Grundy, Michael Bishop and Jenny You.
The investor group included the Deva Family Trust; JS Fotia Superfund; Harbourlink Wealth, as trustee for the Zou family; Sergio Valentino and Darryl Williams; Sang Aung; the Yuantong Family Trust; Heng Aung; Yoke Ngoh Wong and Jessie and Colin Luxton.
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j.ballantyne1990-6AQqhLzZaK

Federal Court winds up $135 million Point Cook Aviation Road land banking company

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The Federal Court of Australia made interim orders restraining Askk Investment Group Pty Ltd (Askk) from dealing with funds in their bank accounts in relation to a suspected land banking scheme. 
The December 20 orders see Askk also restrained from selling or otherwise dealing in the property which is the subject of the land banking scheme.
Askk has an interest in land located in Lot 2, 615 Hume Highway Beveridge, Victoria.
Askk is Broadmeadows based.
ASIC suspects that since October 2017, Askk has raised in excess of $10 million dollars from more than 270 investors in relation the land, and since this time, investors have been making ongoing payments in respect of their investment.
The money is in two Westpac accounts.
ASIC is concerned that Askk:
<ul>
<li>may be operating an unregistered managed investment scheme (MIS);</li>
<li>may be carrying on a financial services business in relation to the promotion and operation of an unregistered MIS without holding an Australian Financial Service Licence; and</li>
<li>may have engaged in conduct that is misleading or deceptive during the promotion of the scheme to investors.</li>
</ul>
ASIC’s investigation is ongoing. The freezing orders remain in place until the next hearing date on 8 February 2019.
The orders allows Askk withdrawing up to $50,000 for the purposes of paying the defendant’s legal expenses in relation to this matter.
The land was initially marketed as a large acreage "ready to be owned by astute developers, builders and land bankers including group of investors looking to cash in capital."
It was described as a "unique land parcel zoned under urban growth with its boundary located in the famous Beveridge north suburbia."
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$10 million frozen in suspected Askk Investment Group land banking scheme

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Landbanking firm KSI investments has advised the DomaCom Fund to close the fundraising for the purchase of a second parcel of land at Badgerys Creek early given strong investor interest.
It came after an influx of investment from local and overseas property investors following the announcement of a $100 million university and research precinct within 3.8kms of the land located at 60 Devonshire Road, Rossmore (pictured above).
The campaign for the land in Rossmore near Badgerys Creek was oversubscribed by 20 per cent.
Investors who missed out will be able to invest in other upcoming crowdfunded land investment which will be available over the next few months.
DomaCom is Australia's leading property crowdfunder. It allows anyone to <a href="/expert-insights/crowdfunding-into-property-domacom-explains">invest a little or a lot</a> into property investment. 
Arthur Naoumidis CEO of DomaCom Ltd, said it was very exciting to have completed the second parcel of land so quickly after the first transaction.
"It sees the realisation of what the DomaCom Fund was established for, allowing retail investors access to an asset which would not normally be accessible to this market," he said.
"We now have close to 100 investors owning a fractional interest in this asset.”
KSI investments CEO Robin Luo says there are some factors at play in the Sydney property market pushing land prices higher leading to heightened interest in crowdfunding of land near Badgerys Creek.
“As the Sydney residential property market cools, investors have been looking for alternative ways to make money in property he said.
"Appreciating the topography of Sydney is key to understanding why land prices are surging, Sydney is landlocked by mountain ranges to the west and ocean to the east, meaning flat land is limited to a 80 km radius of the CBD."
"In contrast, Melbourne has flat land for over 200kms from the CBD. The south-west Sydney region is the last frontier for land in Sydney. It’s the last opportunity for investors to buy unimproved farm land to convert into residential. Basically, everywhere else in Sydney has already been through this transformation process over the past 30 years,” Mr Luo concluded.
Endre Kollo, KSI Executive Director said the Government will break ground on the construction of Badgerys Creek airport later this year
In preparation, the State Government has already committed hundreds of millions of dollars to building new train stations and putting in new roads.
"The infrastructure support from the State Government has been wonderful for land prices in the region," Mr Kollo said.
Mr Luo said that many people want to buy in the Badgerys Creek region but few have the funds and resources to acquire the properties.
In the past, landbanking was only available to big developers however the DomaCom fund has opened this up to mum and dad investors via a crowdfunding structure.
He suggests that residential housing values will continue to fall while rural land prices will continue to rise for the next few years.  
“Given the 70 per cent price increases we’ve seen in Sydney over the past 5 years, even after a correction, prices are still higher than the long-term trend growth of 7.25 per cent and remain unattractive to most, particularly noting the still unattractive rental yields on residential property.  
"The land market in the south-west region on the other hand, is a buoyant market and we need to act quick to snap up good land otherwise it gets taken up by another developer within days”.
AFL legend <a href="/news/afl-legend-kevin-sheedy-ambassadorial-assist-in-domacoms-push-in-farm-fractional-ownership-scheme">Kevin Sheedy</a> is an ambassador for Domacom. 
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Domacom landbanking opportunity trumping residential decline in Sydney

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The Federal Court in Melbourne has ordered that a land banking scheme known as the Realestate Equity Investment Trust (REIT) and an associated company, Timeline Project Management Pty Ltd (Timeline), be wound up. 
REIT is a managed investment scheme that owns land located at <a href="https://www.realestate.com.au/property/490-flinders-ave-lara-vic-3212" target="_blank">Flinders Avenue in Lara in Victoria</a> (below).
At least 82 investors have invested approximately $800,000 into the REIT scheme.
ASIC advise a large amount of the money paid to Timeline has been withdrawn and the balance of that account is now approximately $45,000.
<img src="https://res.cloudinary.com/dz9xllyip/image/fetch/c_scale,w_580,q_auto:good/https://s3-ap-southeast-2.amazonaws.com/po.images/2017/12/21/land.jpg" alt="">
The Lara Property was purportedly mortgaged in favour of a Shariah law lender known as Equitable Financial Solutions Pty Ltd (EFSOL) without the consent of the custodian of the Lara Property, Perpetual, and without that mortgage being registered with the land titles office.
ASIC advised the court the land had purportedly been mortgaged in favour of EFSOL for an amount of between $400,000 and $507,000.
The 2016 agreement, made under Shariah law, contemplates the transfer of the Lara Property to EFSOL and Lotus jointly, with EFSOL owning a 52 per cent share and Lotus owning at 48 per cent share.
The value of EFSOL’s share is expressed to be “consideration of $507,000” with $400,000 being paid into a solicitor’s trust account and $107,000 stated to be for services provided by EFSOL to Lara, including “back office support, front office support and underwriting of any financial costs to Lara if REIT is unable to fund it. 
It is not clear to ASIC where or why most of that money has gone as contrary to its legal obligations, no financial statements have been prepared for the REIT scheme for 5 years, ASIC advise. 
Since 2013, investors have been making payments in respect of their investment to Timeline. The Court orders have been issued in English, Arabic and Somali given the source of the investors.
ASIC’s concerns included that:
<ul>
<li>REIT had been operating despite it not having a validly appointed responsible entity;</li>
<li>REIT appeared unviable given there had been no progress in, nor prospect of, developing the Land;</li>
<li>financial statements for REIT had not been prepared or lodged with ASIC since 2012; and</li>
<li>the interests of investors appeared to have been prejudiced by the operators of the scheme, including the dissipation of investors’ money by management to entities unrelated to the scheme.</li>
</ul>
ASIC Commissioner John Price said, ASIC will take action against unlawful managed investment schemes and the parties that run such schemes.
"Unlawful schemes such as land banking put investors' money at risk and investors should be very careful in checking whether schemes are legitimate before putting up their hard-earned money," John Price said.
Nicholas John Martin and Andrew Thomas Sallway of BDO Australia have been appointed as receivers of the property of REIT, liquidators of Timeline and to ensure that REIT is wound up in accordance with its constitution and the Court’s orders. 
Mr Martin and Mr Sallway are required to undertake a range of investigations into the affairs of REIT and Timeline, including to:
<ul>
<li>identify any assets and creditors;</li>
<li>identify unitholders in REIT and verify the amount invested by each unitholder;</li>
<li>determine the validity and value of any claims on the Land;</li>
<li>determine the nature of any potential claims against Timeline or REIT; and</li>
<li>once the pool of available funds has been determined, calculate the distributions that may be made to unit holders in REIT and any other creditors.</li>
</ul>
The orders also provide that Mr Martin and Mr Sallway are to take all reasonable steps to procure an enforceable offer to purchase the Land from another company, Equitable Financial Solutions Pty Ltd.
Mr Martin and Mr Sallway will report to the Court by 9 March 2018 with its listed for a case management hearing on 20 March 2018.
ASIC filed an application to wind up REIT and Timeline on 25 July 2017.
This followed the cancellation of the Australian financial services licence held by Lotus Securities Pty Ltd (Lotus), the responsible entity that managed the REIT scheme until 21 September 2016. Lotus was placed into liquidation on 14 December 2016, on the application of a creditor.
Lotus had secured debts totalling $700,000 and unsecured debts totalling $150,000.
Half the purchase price of $975,000 in 2010 was funded by private investors. 
ASIC said John Isaacs, who was investigated by ASIC, has been involved with the management of REIT and Lotus and is connected with other entities involved in the scheme. The management of REIT, Lotus and Timeline includes Mr Isaacs, who has been involved with the management of REIT and Lotus and is connected with other entities involved in the scheme and Natalie McKeown, Mr Isaacs’ partner. Mr Sharmarke Mohamed Ahmed, a friend of Mr Isaacs, was the purchaser under the original contract of sale of the Lara property.
From around 2011, the REIT investors purchased units in the Lara Syndicate for at least $7,000 each as an initial deposit and paid a minimum of $300 per month under a “savings plan.”
Investor monies were being paid into Timeline’s account from June 2013 up until at least June 2017, notwithstanding that Timeline was deregistered on 25 January 2015 and Lotus had its AFSL cancelled on 21 September 2016.
An amount of $308,212.90 was received through the Paygate system from June 2013 to June 2017, from investors in REIT, by way of recurring deposits. 
ASIC is concerned that no steps have been taken to develop the Lara property and on current information it appears that the development of the property cannot go ahead.
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ASIC has been told by the Greater Geelong Council that  the Lara property is located in a farming zone;  the Council does not support the rezoning of the property for development.
These proceeding are part of ASIC's wider and ongoing investigation into land banking schemes.
 
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Shariah law loan emerges as Timeline's $800,000 Lara land banking scheme wound up by Federal Court

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Crowdfunding company DomaCom has joined with KSI Investments for a land banking campaign in Western Sydney’s Rossmore/Badgerys Creek area.
Investors will soon be able to own units in a sub-fund of DomaCom Fund that will acquire the <a href="https://www.domacom.com.au/public-crowdfunding-campaigns/rural-properties/badgerys-creek-land-banking/?utm_content=bufferf089c&amp;utm_medium=social&amp;utm_source=twitter.com&amp;utm_campaign=buffer" target="_blank">Rossmore/Badgerys Creek</a> land site.
The DomaCom Fund is designed so that so that any number of investors can pool in different amounts to purchase a specific property asset – such as this Rossmore/Badgerys Creek parcels of land – and reap the benefits of the increased capital value of the asset over time.
The fund expects to deliver investors with strong capital growth in about 10 years.
DomaCom’s land banking formula enables even mum-and-dad investors to acquire an area of land zoned for rural or agricultural use that will, due to growth in the urban corridor, eventually be re-zoned to residential. Previously, it was the domain of institutional investors, DomaCom says,
It works on the principle that holding the land for the long term would see the property increase in value as population/housing demand sees re-zoning occur to create new suburbs.
The current land banking assets are at 60 Devonshire Road, Rossmore, which is a 2.5 ha of land. The other is 64 Devonshire Road (2.1 ha). The total area is 4.6 ha.
The zoning is RU4 – Rural Small Holdings.
The total price is $7.56 million or $162 per sqm.
This differs from traditional land banking where most of the profit goes to the developer. Instead, through the crowdfunding model, of DomaCom and KSI Investments, “investors will be able to receive some of the expected profit that traditionally has only been available to developers,” says the campaign document.
Key features: 
1. Western Sydney Airport at Badgerys Creek – 5km or 10 mins drive
2. Commercial hubs such as Penrith, Campbelltown, and Liverpool – 20km or 30 mins drive
3. Sydney CBD – 40km or 1 hour drive from Sydney CBD
4. Future regional centre, Leppington – 4km.  Leppington has been identified as a priority precinct by the NSW Planning Department and developments will include:
a. Train station
b. Supermarket and department store
c. Aquatic and sport centre
d. Community and cultural centres
e. A large integrated hospital
f. Employment for approx. 13,000 people
Rossmore precinct – only 2km away.  The future Rossmore precinct will also include:
a. Train station (location is currently under Government planning)
b. Supermarkets
c. 1 High school, 3 Primary schools, 3 Childcare centres and 15 General Practitioners.
The crowdfunding campaign is still being structured but applications are open for interested investors.
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DomaCom partners KSI Investments with crowdfunded campaign of Badgerys Creek sites

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The Sydney investment management firm KSI Investments has acquired 11.55 acres of land in Rossmore, in South-West Sydney which will be part of the Sydney Landbanking KSI Investment Fund.
The land is located 5 kilometres from the planned second airport at Badgerys Creek.
It is expected to accommodate between 110 to 140 houses once rezoned which is expected to occur over the next five to seven years. 
The deal, brokered by KSI Investments as an off market transaction includes two adjoining pieces of farm land.
It has been structured under an options contract with settlement to occur within the next six month. 
Robin Luo, CEO of KSI Investments says investing in landbanking has been traditionally limited to wealthy investors and property developers.
"However, KSI Investments has opened up this sector to retail investors via this Australian first, with a minimum of $2,000 investment under a retail managed fund structure,” Luo says.
The KSI Sydney Landbanking fund is a retail managed fund overseen by ASIC. 
KSI Investments has engaged Perpetual Australia Limited as custodian for the fund, named the Sydney Landbanking KSI Investment Fund.
The fund is able to accept investment from SMSF investors as well as private investors, companies and trusts.   
Using the investment registry services of DomaCom Limited, investors are able to trade units in the fund freely, meaning they have liquidity before the eventual land sale after rezoning occurs. 
KSI Investment, charge a 25% annual management fee and 20% performance fee on the eventual sale of the land.
<a href="https://www.domacom.com.au/public-crowdfunding-campaigns/rural-properties/badgerys-creek-land-banking/" target="_blank">DomaCom is working with KSI investments</a> to bring this Rossmore/Badgerys Creek land banking crowdfunding campaign to investors.
Once the land/campaign is acquired KSI have the skillset to manage the opportunity through subsequent phases of development to extract additional value.
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Residential landbanking crowdfunding opportunity in fringe Badgerys Creek farm

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The Federal Court of Australia has made orders appointing liquidators to companies associated with Jamie McIntyre and 21st Century land banking companies.
Simon Alexander Wallace-Smith and Robert Scott Woods of Deloitte have been appointed as joint liquidators to the corporate respondents to ASIC’s proceeding that commenced in August 2015.
The corporate respondents are:
Archery Road Pty Ltd (ACN 162 921 735) Bendigo Vineyard Estate Pty Ltd (ACN 600 088 211) Secret Valley Estate Pty Ltd (ACN 602 817 532) Kingsway South Holdings Pty Ltd (ACN 159 230 976) Melbourne Tarniet Estate Pty Ltd (ACN 603 945 393) Property Tuition Pty Ltd (ACN 129 421 281) Education Holdings Pty Ltd (ACN 129 551 917) Sourcing Property Pty Ltd (ACN 602 474 779)
Mr Wallace-Smith and Mr Woods were appointed provisional liquidators of the corporate respondents on 7 October 2015. Mr Wallace-Smith and Mr Woods stated in their report dated 15 December 2015 that each of the corporate respondents are insolvent and recommended that each should be wound up to enable a liquidator to conduct further investigations into their respective affairs and to identify any recoveries which might be made for the benefit of creditors.
The Federal Court also granted ASIC leave to seek orders at the final hearing of the matter that:
<ul>
<li>Jamie McIntyre be declared a shadow director of each of the corporate respondents; and</li>
<li>Jamie and Dennis McIntyre be disqualified from managing corporations.</li>
</ul>
The matter has been adjourned for a further directions hearing at 10:15am on Friday 8 April 2016. A date for the final hearing of the matter has not been set by the court.
McIntyre agrees to 21st Century provisional liquidation for five land banking schemes in October last year.
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ASIC appoints liquidators to 21st Century land banking companies associated with Jamie McIntyre 

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The Federal Court of Australia has set aside a resolution made by creditors of land banking developer Midland Hwy Pty Ltd  to enter into a deed of company arrangement (DOCA) and for Midland Hwy to be wound up. 
The DOCA had been proposed by Bilkurra Investments Pty Ltd.
ASIC had sought wind-up orders in public interest for a proper investigation into the affairs of Midland Hwy by independent liquidators.
Nicholas Martin and Craig Crosbie of PPB Advisory have been appointed as the liquidators of Midland Hwy.
In his judgment, his Honour Justice Beach found that the public interest required the winding up of Midland Highway, "particularly where there is no intention for any part of the business of Midland to be salvaged".  
"There is nothing concerning Bilkurra's financial position or status that would give me or the option holders any confidence that the project will proceed to completion.  Moreover, the project appears to now be in the hands of entities and persons implicated in the very transactions under which $24 million of option holders' funds have been siphoned off in shadowy circumstances and through the use of phantom like corporate structures," the judge said.
Midland Hwy was the developer of a land banking scheme known as 'Hermitage Bendigo' (formerly 'Acacia Banks'), located just outside of Bendigo, Victoria and was put into administration on 2 July 2015. At the second creditors' meeting of Midland Hwy held on 21 October 2015, creditors voted in favour of the DOCA despite the Administrators recommending the company be put into liquidation.
"This outcome demonstrates ASIC's commitment to ensuring that  DOCA arrangements proposed to be entered into under the Act are not used as a means to avoid proper investigation and scrutiny by independent persons" said ASIC Commissioner Greg Tanzer.
The move is part of ASIC's wider investigation into land banking schemes.
ASIC previously resolved proceedings against Midland Hwy to remove David Anthony Ross and Richard Albarran of Hall Chadwick as the administrators.
Land banking is a real estate investment scheme involving the acquisition of large blocks of land by a promoter or developer of the scheme, often in undeveloped rural areas, who then offer portions of the land to investors. 
Land banking companies typically promote the investment with representations of high potential returns if the land is redeveloped, or if plans for rezoning and development are finalised.
Investors either purchase a lot in the land, or acquire an option to purchase a lot of land in an unregistered plan of subdivision.  The option agreement is triggered at a time that the necessary development is approved by the local council.
While ASIC does not regulate direct property investment, ASIC considers that land banking schemes, depending on the particular scheme, may be a managed investment scheme and/or a financial product and that the promoters of these schemes should therefore hold an Australian financial services licence and register these schemes with ASIC.
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Court orders winding up of failed land banking company Midland Hwy 

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The Federal Court today made interim orders appointing provisional liquidators to companies associated with Jamie McIntyre and 21st Century land banking companies.
Simon Alexander Wallace-Smith and Robert Scott Woods of Deloitte have been appointed as provisional liquidators to corporate respondents to ASIC’s legal action commenced in August 2015.
The respondents are:
<ul>
<li>Archery Road Pty Ltd (ACN 162 921 735)</li>
<li>Bendigo Vineyard Estate Pty Ltd (ACN 600 088 211)</li>
<li>Secret Valley Estate Pty Ltd (ACN 602 817 532)</li>
<li>Kingsway South Holdings Pty Ltd (ACN 159 230 976)</li>
<li>Melbourne Tarniet Estate Pty Ltd (ACN 603 945 393)</li>
<li>Property Tuition Pty Ltd (ACN 129 421 281)</li>
<li>Education Holdings Pty Ltd (ACN 129 551 917)</li>
<li>Sourcing Property Pty Ltd (ACN 602 474 779)</li>
</ul>
In addition, injunctions were made preventing all of the respondents, including Jamie McIntyre and Dennis McIntyre from promoting the five schemes ASIC is concerned about. They are: Botanica, Secret Valley Estate, Oak Valley Lakes Estate &amp; Resort, Bendigo Vineyard Estate &amp; Resort and Melbourne Grove Estate.
The provisional liquidators have been ordered to provide a report to the court, ASIC and the respondents within 42 days by November 19 reporting on a number of matters including the solvency of the companies and the schemes, any money owing to investors and the likely return to creditors of the companies.
Jamie McIntyre, Dennis McIntyre and the companies all agreed to the orders made today.
The matter returns to court for a further directions hearing on December 4. A date for the final hearing of the matter has not been set by the court.
The Scheme known as Botanica includes land located at 805 Archer Road, Kialla, Victoria 3631 and involves Archery Road Pty Ltd, Property Tuition Pty Ltd, Education Holdings Pty Ltd and the investors therein.
The Scheme known as Secret Valley Estate includes land located at 1955 Old Sydney Road, Bylands, Victoria 3762 and involves Secret Valley Estate Pty Ltd, Property Tuition Pty Ltd, Education Holdings Pty Ltd and the investors therein. t
The Scheme known as Oak Valley Lakes Estate &amp; Resort includes land located at 124 Booth Road, Brookhill, Townsville Qld 4816 and involves Kingsway South Holdings Pty Ltd, Sourcing Property Pty Ltd, Property Tuition Pty Ltd, Education Holdings Pty Ltd and the investors therein.
The Scheme known as Bendigo Vineyard Estate &amp; Resort includes land located at 51 Andrews Road, Bendigo, Victoria 3551 and involves Bendigo Vineyard Estate Pty Ltd, Property Tuition Pty Ltd, Education Holdings Pty Ltd and the investors therein.
The Scheme known as Melbourne Grove Estate includes land located at 1491 Dohertys Road, Mount Cottrell, Victoria 3024 and involves Melbourne Tarniet Estate Pty Ltd, Property Tuition Pty Ltd, Education Holdings Pty Ltd and the investors therein.
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Jamie McIntyre agrees to 21st Century provisional liquidation for five land banking schemes

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ASIC has commenced proceedings in the Federal Court of Australia against companies associated with Jamie McIntyre and the 21st Century Group in relation to their promotion and sale of interests to investors in five land banking schemes.
ASIC alleges that the schemes are unregistered managed investment schemes and that the 21st Century Group companies and Mr McIntyre have been unlawfully carrying on an unlicensed financial services business.
The five schemes are promoted and advertised as:
<ul>
<li>Botanica, located at 805 Archer Rd, Kialla, Victoria 3631</li>
<li>Secret Valley Estate, located at  955, Old Sydney Road, Bylands, Victoria 3762</li>
<li>Oak Valley Lakes Estate &amp; Resort, located at  124 Booth Road, Brookhill, Townsville, Qld 4816.</li>
<li>Bendigo Vineyard Estate &amp; Resort, located at  51 Andrews Road, Bendigo, Victoria 3551</li>
<li>Melbourne Grove Estate, located at  1491 Dohertys Road, Mount Cottrell, Victoria 3024</li>
</ul>
ASIC understands that there are over 100 investors in the schemes, which have been promoted to investors, including through seminars, by entities associated with Mr  McIntyre's 21st Century Group. Companies associated with Mr McIntyre and the 21st Century Group are also the developers of the schemes (development companies). 
On 21 August 2015, the Federal Court of Australia accepted undertakings from each of the defendants, including Jamie McIntyre, that until further order or agreement with ASIC, they would not promote the developments, act in furtherance of the developments, receive, solicit or dispose of any funds in connection with the developments, remove any assets from Australia or charge any assets and dispose of or destroy any books and records in relation to the developments. 
The undertakings allow the defendants to make interest payments in relation to the loan entered into by Bendigo Vineyard Estate Pty Ltd for the Bendigo Vineyard Estate &amp; Resort development.
On 10 August 2015, the Federal Court accepted undertakings from Messrs Jamie and Dennis McIntyre that until 5 November 2015, they would give notice to ASIC of any travel outside of Australia and would deliver their passports to their solicitors. 
The matter has now been set down for hearing on 8 October 2015 at 10:15am.
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