AEG formalises Elm Grove Heights management rights over 56 residential Lots
Aland Equity Group (ASX: AEG) has executed the Management Rights Agreement (MRA) through its wholly owned subsidiary, Aland Equity Land Pty Limited (AE Landco), covering the 56 residential Lots that comprise the Elm Grove Heights Land Release in Bungendore, NSW.
The MRA replaces the previously announced binding Heads of Agreement, formalising the arrangement rather than establishing a new deal.
The MRA replaces the binding Heads of Agreement announced in late July 2026, which first introduced the $3.5 million non-recourse debt facility from PLC Money and established the $75,000 per lot income target as the basis for the Elm Grove Heights Fund structure.
Based on current assumptions, the agreement is estimated to generate Fund income of approximately $75,000 per Lot after all costs, with AEG entitled to 100% of Fund investment returns plus funds management fees. A sales and marketing campaign is scheduled to commence in late September 2026.
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Inside the deal: what the Management Rights Agreement delivers
Under the MRA, AE Landco holds the exclusive right to manage the subdivision, marketing and sale of the 56 Lots and to receive the agreed fee from the sale of each Lot. The agreement covers Stages 2B-1 and 2B-2 of Elm Grove Estate, Bungendore.
The counterparty, Elmslea Land Developments Pty Limited as trustee for Elmslea Land Development Unit Trust No. 2 (ELD), will continue to own the Land and Lots until each Lot is sold. Critically, AE Landco acquires no legal or beneficial interest in the Land.
AEG has engaged Marq Trustees to act as independent trustee of the Fund, with establishment documentation currently being prepared. AEG will act as Investment Manager, and following establishment, AE Landco intends to appoint the Fund as its nominee under the MRA.
This structure reflects a capital-light model. The Fund does not acquire the land upfront and carries no responsibility for the development or construction of the Lots.
| Term | Detail |
|---|---|
| Lots covered | 56 residential Lots (Stages 2B-1 & 2B-2) |
| Fee per Lot sold | $140,000 (excl. GST) paid by ELD to AE Landco |
| Estimated Fund income per Lot | ~$75,000 after all costs |
| Initial term | 24 months, with one 12-month extension right |
| Conditions precedent | ASX and AEG shareholder approvals by 31 December 2026 |
The economics: how AEG captures 100% of the upside
The revenue flow under the agreement follows a defined sequence. ELD pays AE Landco a fee of $140,000 (excl. GST) for each Lot sold, with the balance of Sale Proceeds applied to costs and financing before any distribution to the parties.
The proceeds waterfall works as follows:
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ELD pays AE Landco the agreed fee of $140,000 (excl. GST) per Lot sold.
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GST, sales commissions and direct sale costs are deducted from Sale Proceeds.
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Until the Finance has been fully repaid, the balance is paid to AE Landco and applied towards repayment of the Finance, with any remaining balance retained by AE Landco.
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Following repayment of the Finance, Sale Proceeds are distributed between AE Landco and ELD in accordance with the agreed payment waterfall.
Because AEG will own 100% of the units in the Fund, it will be entitled to 100% of the Fund investment returns, in addition to funds management fees.
The funding structure is designed to limit balance sheet exposure. AEG’s investment in the Fund units will be fully funded from a third party debt facility, which will be secured against the Land and non-recourse to AEG. Where requested, ELD must grant limited recourse mortgages over the relevant Land to the financier, with recourse limited to the mortgaged Land and proceeds from the sale of the Lots.
David Nolan, Managing Director
“Elm Grove Heights is expected to deliver the first revenues from AEG’s property funds platform and generate significant revenues and profitability in FY27.”
Understanding the capital-light funds model
A capital-light management rights model allows a company to earn fees from managing and selling residential lots without buying or developing the underlying land itself. In this case, AE Landco coordinates subdivision, marketing and sales, while ELD retains ownership until each Lot is sold.
This differs from traditional property development, which typically requires substantial upfront capital to acquire land and carries construction risk over the build period. The fee-and-fund-income approach shifts the emphasis towards management services and Fund returns rather than land ownership.
The non-recourse nature of the debt facility is a notable feature for investors. Because the financing is secured against the Land and non-recourse to AEG, the company can access funding for the transaction without exposing the wider group balance sheet to the same risk.
For investors assessing the opportunity, the combination of Fund income and funds management revenue points to a potentially scalable platform, provided further releases follow and the conditions precedent are satisfied.
For investors exploring how the broader model scales beyond individual releases, our dedicated guide to AEG’s property funds platform covers all three revenue streams, the 10 + 10 year exclusivity structure, and the built-in 30% development margin across the full 4,200-lot NSW and ACT pipeline.
What’s next: sales launch and the growing pipeline
A comprehensive sales and marketing strategy for Elm Grove Heights is being finalised, initially targeting buyers in Canberra and surrounding regional markets. The campaign is scheduled to commence in late September 2026.
Management has signalled a broader pipeline beyond this initial release:
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Elm Grove Heights — sales campaign to commence late September 2026
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Cowra — launch expected shortly after
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Chinnerys — to follow
The transaction is not yet fully unconditional. It remains conditional upon the relevant ASX and AEG shareholder approvals, which are to be satisfied on or before 31 December 2026.
David Nolan, Managing Director
“We are excited to commence the sales campaign in late September, with Cowra expected to launch shortly and Chinnerys to follow, building a pipeline of Fund income and funds management revenue.”
Elm Grove Heights is positioned by management as the first revenue proof point for AEG’s property funds platform. Subject to satisfaction of the outstanding approvals, the company expects the release to generate significant revenues and profitability in FY27, with the wider pipeline offering the potential for recurring Fund income and funds management revenue over time.
Ready to Learn More About AEG’s Elm Grove Heights Property Funds Platform?
With a capital-light management rights model covering 56 residential lots and an estimated $75,000 in Fund income per lot, AEG’s Elm Grove Heights release is positioned as the first revenue proof point for a scalable property funds platform ahead of a late September 2026 sales launch.
Explore the full details of the Elm Grove Heights opportunity and AEG’s broader NSW and ACT pipeline by visiting the Aland Equity Group investor centre, where you can assess the company’s Fund structure, revenue streams, and growth strategy firsthand.