S
Selling now
Beach Haven, North Shore
Sea Vista Terraces
9 freehold townhouses
Wholesale investors only
Fund new Auckland homes. Earn 12% p.a., paid quarterly.
Source Capital provides development capital to Source Group, an Auckland townhouse developer. Your investment is backed by director equity, a director guarantee and security over the projects it funds.
Minimum investment $750,000.
- 12% p.a., paid quarterly
- $1,000,000 director guarantee
- Maximum 70% LVR
- 70% pre-sold before build funding
The offer
A fixed quarterly income from Auckland residential development
You invest in Class A redeemable preference shares in Source Capital Limited. Source Capital advances those funds to Source Group, or a project company, to buy, consent and build new townhouses.
- No management feeSource Capital's running costs are paid by Source Group Limited, so the full 12% rate is yours.
- Tax handled for youTax on dividends is deducted by the company before payment. You provide your IRD number when you subscribe.
- Directors invested alongside youThe directors' equity stays in until every investor's Class A shares have been redeemed.
12% p.a.3% paid each quarter
- Minimum investment
- $750,000
- Distributions
- 10 March, 10 June, 10 September and 10 December
- Investment
- Class A redeemable preference shares in Source Capital Limited
- Use of funds
- Advanced to Source Group or a project company for acquisition, consenting, development, marketing and administration
- Fees
- No fund management fee
- Who can invest
- Wholesale investors under the Financial Markets Conduct Act 2013
All investment carries risk, including the risk of losing some or all of your capital. Development projects can be affected by delays, cost increases and changes in the property market. The full terms and risks are set out in the Information Memorandum. Read it in full and take independent advice before investing.
Security
How your capital is protected
Every project is funded against the same rules. They are set before any money is released and are not relaxed project by project.
1
Director equity
$500,000
Held as Class B shares that rank behind investors' Class A shares, and not withdrawn until every investor has been repaid.
2
Personal guarantee
$1,000,000
A limited personal guarantee from the director, covering Source Capital's obligations to Class A shareholders.
3
Lending cap
70% LVR
Total funding from Source Capital and any other lender is capped at 70% of the project's completed value.
4
Pre-sales first
70% pre-sold
At least 70% of the homes in a project must be pre-sold before construction finance is drawn.
5
Property security
Mortgage and contracts
Source Capital takes the best security available on each project: an assignment of the sale contracts, and a first mortgage, or a second mortgage where a bank or primary funder holds the first. A set draw-down schedule is agreed before any project funds are released.
Investors: Class A preference sharesPaid first
Directors: Class B shares, $500,000Paid last
How shares rank inside Source CapitalBacked by a $1,000,000 director guarantee
How it works
From first call to first distribution
- 1
Enquire
Send us your details. Hamish or Tom will call to talk through the offer and answer your questions.
- 2
Read the IM
Once your wholesale eligibility is confirmed, we send the Information Memorandum with the full terms and risks.
- 3
Subscribe
Complete the application and wholesale investor acknowledgement, then transfer a minimum of $750,000.
- 4
Get paid quarterly
Distributions of 3% are paid on 10 March, June, September and December, with tax deducted.
The Source Group edge
Risk is managed at the start, when the site is bought
Source Group builds well-priced freehold townhouses for Auckland buyers. The disciplines below are how projects are chosen and structured before a dollar of investor capital goes in.
Selective, mostly off market
Most sites are sourced off market and negotiated directly. Quality of site over number of deals.
Deferred settlements
Purchases are typically structured with 6 to 12 month settlements, often with consents in place and the homes 50 to 100% pre-sold by settlement.
Homes buyers can afford
Architecturally designed freehold townhouses at prices that suit Auckland's deepest pool of buyers, backed by a 10 year build guarantee.
Track record
Projects delivered and in progress
Source Group developments across Auckland's North Shore, West and East Auckland.
M
Artist's impression
Artist's impression
Coming soon
Belmont, North Shore
Merani Court
14 freehold townhouses
A
Artist's impression
Artist's impression
Coming soon
Glenfield, North Shore
Avalon Heights
10 homes: 2 standalone, 8 terraces
D
Artist's impression
Artist's impression
Coming soon
Glenfield, North Shore
Diana Rise
5 freehold townhouses
M
Artist's impression
Artist's impression
Coming soon
Chatswood, North Shore
Mokoia Residences
3 two-bedroom townhouses
T
Completed
Point England, Auckland
Taratoa Terraces
14 freehold townhouses, sold out 2026
T
Completed
New Lynn, Auckland
Tomo Terraces
11 townhouses, sold and settled
G
Completed
Te Atatū Peninsula, Auckland
Gloria Terraces
9 townhouses, sold and settled
F
Completed
Birkdale, North Shore
Fairdale Terraces
7 townhouses, sold and settled
E
Completed
Birkdale, North Shore
Eskdale Homes
3 new homes, sold and settled
N
Completed
Whitemans Valley, Auckland
North Valley Estate
12 lifestyle lots, sold and settled
Our team
The people managing your capital
HA
Hamish Anderson
Managing Director
Over 15 years in property. Master's in Property Development and Investment, and a Certified Hedge Fund Professional.
TN
Tom Naylor
Chief Financial Officer
Oversees finance, reporting and investor distributions across Source Group and Source Capital.
RR
Richard Ramsey
Management & Acquisitions
Sources and negotiates new development sites, most of them off market.
Consultants we work with
- Lane Neave
- Sentinel Planning
- Space Structural
- Soil and Rock
- ASR Group
- X Studio
- G-Y Law
- Chester
Who can invest
Built for wholesale investors
This is not a regulated offer and there is no Product Disclosure Statement. It is only open to wholesale investors under clause 3 of Schedule 1 of the Financial Markets Conduct Act 2013.
You qualify if you invest at least $750,000
Because the minimum investment is $750,000, every subscriber can invest under the minimum investment wholesale category. As part of your application you will:
- receive the prescribed wholesale investor warning, and
- sign an acknowledgement that you understand you will not receive the disclosure that applies to a regulated offer.
Questions
What exactly do I own?
Class A redeemable preference shares in Source Capital Limited. They rank ahead of the directors' Class B shares.
When are distributions paid?
Quarterly, on 10 March, 10 June, 10 September and 10 December. Each payment is 3% of your investment, which is 12% per annum.
Are there any fees?
There is no fund management fee. Source Capital's running costs are covered by Source Group Limited.
How is tax handled?
Source Capital deducts the tax payable on your dividends and pays it on your behalf. You will need to provide your IRD number when you subscribe.
What is the term, and how do I exit?
The term and redemption process are set out in the Information Memorandum. Get in touch and we will take you through them.
Where is my money used?
It is advanced to Source Group, or a project company, for site acquisition, consenting, development, marketing and administration of Source Group projects, under the lending rules described above.
Request the Information Memorandum
Talk to us about investing
Leave your details and we will be in touch within one business day to confirm your eligibility and send the Information Memorandum.
- Phone0800 114 984
- Emailhamish@sourcegroup.co.nz
- Office10/54 View Road, Wairau Valley, Auckland 0627
- Developersourcegroup.co.nz