VentureCrowd Closes Clearstate’s Sydney Resident Property Deal After Securing $1M in Four Hours

Sydney AustraliaOn Tuesday, Australia’s equity crowdfunding platform VentureCrowd announced the closing of Clearstate’s recent deal, which secured $1 million in four hours. The end-to-end property development company took to the funding portal to raise $900,000 for residential property development in Sydney.

According to a press release provided by the companies, VentureCrowd and Clearstate teamed up to provide eligible investors with access to equity in the $13.4 million Garfield Road property development in Riverstone East, located 45 minutes northwest of Sydney. The two companies confirmed that the $900,000 funding round gives investors a total of 49 per cent equity in the residential project, where the block of land will be subdivided for 35 new homes. The targeted returns for investors exceed 100%.

Rob Nankivell, CEO of VentureCrowd, stated:

Rob Nankivell“We believe this is the first online platform based equity raise for a residential subdivision in Australia. Crowdfunding has raised an estimated US$2.5 billion for real estate globally and is only expected to grow substantially in the future. Though Australia is lagging behind the world when it comes to innovative funding mechanisms, the Riverstone East project proves that wholesale investors are not. Wholesale investors are ready and willing to invest and gain access to alternatives within the Australian property sector at an early stage on an aligned basis with the developer. We expect this to continue with a number of similar investment opportunities in the coming months.”

Lachlan Cameron, Commercial Director of Clearstate, commented:

Australia Money“After undertaking several property subdivisions across Sydney and Melbourne we looked at the Riverstone project as an opportunity to provide investors with an avenue to access projects and potential returns they otherwise couldn’t access on their own. It is exciting to see property crowdfunding of this type in Australia as it has had a lot of success overseas. VentureCrowd has the intellectual property and experience in both investment and property. Clearstate’s land subdivision expertise, combined with VentureCrowd’s agility to provide access to funds and investors, is a recipe for project success. We expect this to be the beginning of a long and successful partnership.”

The Riverstone East project is reportedly the latest in a number of alternative asset class investments offered on the VentureCrowd platform. The project is due for completion in mid-2017.


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