Director Jennifer Macquarie said she and fellow directors Neville and Lawson Fredericks were using a crowdfunding style method to finance the 18 lot housing development, pending approval. Mrs Macquarie described it as a unique opportunity for several reasons

“It is very rare to get that kind of ocean view project. That gave us confidence in the project and it is giving investors confidence as well. We are putting feelers out for investors but in that process what I am getting is people saying “can I buy a block”. That initially wasn’t our intent but it is starting to happen anyway,” she said.

The Fountaindale Group is opening up the investment opportunity for individuals and self-managed super funds as well as companies to invest. It has teamed up with Glenn Griffin, of Investors Exchange, who is putting the innovative funding approach together in a way that is ASIC compliant. It came about after her father Neville Fredericks was introduced to Mr Griffin via a real estate contact.

Mrs Macquarie said usually such projects were funded with the help of a joint venture partner. But for this project on an increasingly rare piece of seaside land suitable for a housing development they wanted to give smaller investors an opportunity. Each unit price is $25,000 so that even mums and dads can afford to get in.

“We are getting a lot of interest from locals who know us and know the strength of the market for ocean view properties in the northern sububs. It's an exciting new concept and we are trialing it with a small boutique project. But if it is popular we will use the same method to fund other projects. We have been doing joint ventures for 30 years but usually it is with one party. This is essentially the same from our perspective. It is just that one party..is made up of multiple investors. Glenn manages all that. For us it is business as usual. It gives us access to another source of funding for our projects,” she said.

Mr Griffin, a former air traffic controller, said the initial offer closes early August. Details at http://www.coledalebeachland.com.au/. “I purchased a company that holds an Australian financial services licence. That allows us to operate and manage investment schemes. We supply the legal and compliant structure. At the end of the project the investors get back their capital plus their return on investment. The pricing gives everybody an opportunity to become a developer and share in the developers margin. Because it is such a unique project the return for the investor is quite high. We are very comfortable with the project. We are extremely comfortable with Fountaindale. I think it’s a fabulous investment. At this point..it is only an expression of interest we are asking from investors. In a week or two when a product disclosure statement is issued it will come with an application. That is when people will formally apply and deposit funds.”