Aland Equity Group (ASX:AEG) has moved to expand its funds management business into the property sector through a series of long-term property funding agreements tied to projects associated with chairman Alex Brinkmeyer.
The agreements provide AEG with exclusive rights to establish wholesale property funds to finance residential, seniors living, mixed-use and commercial developments across regional New South Wales and areas adjacent to Canberra. The potential pipeline spans more than 4,200 residential lots and more than 100,000 square metres of business park net lettable area.
AEG said the strategy would position the company as a property funds manager rather than a developer, with revenue expected to be generated primarily through investment management fees. Development activity will instead be undertaken by entities associated with Brinkmeyer, whose development history includes delivery of more than 10,000 residential lots across NSW and the ACT.
Managing director David Nolan said the agreements established a “long-term pipeline of property funding opportunities” and gave the company access to approved projects without relying on third-party sourcing.
“These agreements establish the foundation for the expansion of AEG’s funds management platform into the property sector and provide the Company with a long- term pipeline of property funding opportunities.
“Importantly, the platform provides AEG with exclusive rights to establish Funds to finance the acquisition and development of projects with development approvals already in place, rather than relying on sourcing projects from external parties. We believe the ability to acquire these approved projects at pricing incorporating a development margin can strongly underpin Fund investor returns and position AEG to build a significant property funds management business over time.”
Cowra funding deed underpins first wholesale property fund
Central to the expansion is a long-term Property Funding Deed over the Yarrabilly master planned development in Cowra, NSW. Under the deed, AEG subsidiary Aland Equity Land Pty Ltd has secured exclusive rights to nominate funds to finance development stages across the project over an initial 10-year term, with a further 10-year extension option available.
Cowra masterplan.
The agreement includes a security package comprising mortgage, caveat and general security arrangements, as well as a first right of refusal over undeveloped land. Stage acquisitions will be priced using a Residual Land Value methodology designed to preserve a 30% development margin at fund level for residential developments.
AEG intends to establish its first wholesale property vehicle — the proposed Cowra Villa Estates Fund — to finance Stage 1 of the Yarrabilly project, which consists of an approved 107-dwelling land lease community. The company said an AEG subsidiary would act as investment manager for the fund.
The broader Yarrabilly precinct spans about 260 acres and has potential for around 1,000 mixed dwellings, together with medical, wellness, retail and commercial uses. AEG said the development was positioned to benefit from tourism demand and the growing over-50s and downsizer market in Cowra.
Chinnerys and BITF projects expand pipeline near Canberra
Alongside the Cowra agreement, AEG has entered legally binding heads of agreement covering the Chinnerys residential development and the Bungendore Industrial Training Facility & Technology Hub (BITF), both located near Canberra.
The agreements provide AEG with six months’ exclusivity to negotiate long-term property funding arrangements on substantially similar terms to the Cowra deed, including rights to nominate funds for future development financing.
The Chinnerys project comprises about 1,000 acres adjoining existing Bungendore developments and is expected to support up to 3,200 residential lots over time. A rezoning application covering more than 300 acres is expected to yield more than 1,200 mixed residential lots, while the remaining land may support a further 2,000 lots subject to future zoning outcomes.
Chinnerys masterplan.
Meanwhile, the 86-acre BITF project is planned as a defence and technology-focused commercial precinct with training facilities, business infrastructure and hospitality amenities. A development application for the first stage is expected to be submitted in mid-2026.
AEG said Bungendore’s proximity to Canberra and the Joint Operations Command defence facility positioned the region to benefit from increased defence expenditure and associated demand for residential and commercial infrastructure.