Aland Equity Group (ASX:AEG) executed a series of cornerstone property funding agreements to expand its funds management platform into the property sector, according to a Tuesday Australian bourse filing.
The company said its unit Aland Equity Land has executed a property funding deed over the Yarrabilly master planned development in Cowra, New South Wales, agreeing to pay a fee of AU$200,000 upon the deed becoming unconditional.
The firm intends to establish a wholesale property fund for stage one of the project, comprising an approved 107-dwelling land lease community known as Cowra Villa Estates, the filing added.
Aland Equity Land has also entered into legally binding heads of agreement with entities associated with its Chairman, Alex Brinkmeyer, for the Chinnerys and BITF projects, providing exclusive rights for six months to negotiate and finalize long-term property funding arrangements, the filing added.
The potential pipeline comprises more than 4,200 mixed residential lots and more than 100,000 square meters of business park net lettable area based on the current master plan, the filing added.
The company's shares fell 1% on market close.