PEET Land Syndicate

Anyone ever involved in syndicates or trusts? Either as an investor or running them?

Not a bad way to make money in fees.

"Capital Raising Facilitation Fee of 2.0% of the equity raised (payable March 2013).

The Development Manager will charge a GST exclusive Development Management Fee of 7.0% on the GST inclusive gross sales price of each lot sold within the Project.

The Sales Manager will charge a GST exclusive Sales Management Fee of 2.0% on the GST inclusive gross sales price of each lot sold within the Project.

The Development Manager is entitled to a performance fee, calculated as:

• 20% of all pre-tax profi ts which are in excess of 12% per annum of the equity raised by the Syndicate; plus

• an additional 20% of all pre-tax profi ts which are in excess of 20% per annum of the equity raised by the Syndicate, averaged over the life of the Project on a simple interest basis.

These fees and other associated costs are further explained in section 6."

http://www.peet.com.au/PeetNational... FAQs/Peet-Greenvale-Syndicate-PDS-CLOSED.pdf

So with this one, they purchased it for $18 million but cost them $64 million to develop the land. And revenue is $108 million.

Page 36 also shows how much they aim to increase the land prices every year to make it profitable. Whoever purchases in the early stages, you could potentially estimate the growth based on these numbers.