Property Development Fund Closes Fully Subscribed

St Laurence Property Development Fund Closes Fully Subscribed

St Laurence today announced that its latest investment offer, the St Laurence Property Development Fund has closed fully subscribed as scheduled on Friday, 30 June 2006. The offer has raised $20 million since it opened on 24 April 2006, comprising the initial amount of $10 million plus over-subscriptions of a further $10 million.

The St Laurence Property Development Fund was established to provide funding for and allow retail investors to participate in a variety of commercial property development opportunities, from as little as a $5,000 investment. The Fund is projected to provide a cash return of 13.5% per annum for an initial term of 5 years, via stapled $5,000 parcels consisting of 1 Bond at $4,500 and 500 shares at $1 each.

Kevin Podmore managing director of St Laurence said the company was pleased with the outcome of this offer. “It demonstrates the level of the investor interest in such an opportunity, and also acknowledges increasing acceptance of St Laurence’s experience and expertise in the property market.

St Laurence said the Property Development Fund was most suitable for investors with a reasonable tolerance for investment risk and who seek the opportunity for a higher return, or for investors who want to enter the property development market but on a more limited scale.

“We have carefully calculated the 13.5% p.a. cash return to provide investors with an equitable reward for risk and this has proved positive in the current environment. St Laurence has also demonstrated its confidence in the proposition by matching investors’ equity on a 1 for 1 basis, and only taking its performance fee once the targeted returns have been exceeded,” Mr Podmore said.

The St Laurence Property Development Fund will invest in development projects ‘in partnership’ with proven and reputable developers and only in respect of projects that meet the Fund’s strict investment criteria. These projects may comprise a combination of new developments, redevelopments or sub-division activity in either of the retail, industrial, residential and commercial property markets in New Zealand and, potentially, Australia.

ENDS

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