Savings Product Review: The St Laurence Property Development Fund

Friday 28th April 2006

What is it called and what sort of savings product is it?
The St Laurence Property Development Fund.

Who is the company behind it?
The promoter of the fund is St Laurence Holdings. St Laurence is a Wellington-based property investment and finance company that provides a range of investments, mainly property based. The company started out as a property syndicator, but has developed and successfully marketed a number of innovative investments.

Who is the target market?
Investors who are prepared to take a bit of risk in their property portfolio, or ones who want to enter the property development market but are unable to do so themselves.

What return does it offer?
The target cash return is 13.5% annually.

When was it launched?
April 24.

What other products is it like or is it competing with?
There are no other specific property development funds in the market.

Is it long term, short term or medium term?
The offer, where investors buy a parcel of shares and bonds, has an initial term of five years and can be extended for another five years if the bondholders choose.

What is the unique selling point?
This is one of the few ways that investors can gain access to property development opportunities. Most property funds are for established portfolios of buildings. Also St Laurence has built up a good track record in recent years, fixing failing property investments. St Laurence also plans to match investors� equity on a one-for-one basis.

How strong a stomach do you need for it?
As the exposure is to property development it has much higher risk than regular property funds � this is demonstrated by the expected return level.

What's the hitch?
Not all property developments are successful.

Comments from our readers

No comments yet