Aland Equity Group Locks in 3,200-Lot Pipeline With Built-In 30% Profit Margins
AEG secures funding rights over 3,200-lot Bungendore development
Aland Equity Group has executed a Property Funding Deed for the Chinnerys master-planned residential development in Bungendore, NSW, replacing the Heads of Agreement announced 19 May 2026 and converting preliminary terms into a binding arrangement. The property comprises approximately 1,000 acres with approximately 3,200 mixed residential lots, owned by an entity associated with AEG Chairman Alex Brinkmeyer.
The Deed provides long-term exclusive funding rights over the entire landholding under a 10 + 10 year term structure, secured by mortgage, caveat and power of attorney. Consideration for the funding rights is 60 million AEG shares, subject to shareholder approval under ASX Listing Rule 10.1.
This transforms AEG’s property funds management strategy from concept to contractual reality, securing a multi-decade pipeline of development opportunities with built-in profit margins.
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The 30% Development Margin explained
Independent valuers determine stage acquisition prices using a Residual Land Value formula. The critical feature: a fixed 30% gross profit margin (Development Margin) is incorporated into Fund acquisition pricing throughout the life of the developments.
Based on comparable sales over the last five years, this equates to $174,000 per lot. The illustrative example provided demonstrates how this works in practice: 100 lots at a market value of $580,000 per lot, with the Fund purchase price set at $406,000 per lot, delivering a $174,000 per lot Development Margin to the Fund.
| Item | Per Lot | 100 Lots |
|---|---|---|
| Market value (independent valuation) | $580,000 | — |
| Fund purchase price | $406,000 | $40,600,000 |
| Development Margin to Fund | $174,000 | $17,400,000 |
The locked-in margin structure means AEG Funds acquire lots at prices designed to deliver profit regardless of market fluctuations during the 20-year term.
How property funding deeds work
A Property Funding Deed is a contractual arrangement that grants AEG exclusive rights to facilitate the financing, acquisition and development of property stages through Funds it establishes. AEG acts solely as fund manager and co-investor — development execution is undertaken by experienced external development groups entirely outside the AEG corporate structure.
AEG may co-invest in its Funds up to 100%, participating in both investment returns and investment management fees. This creates a dual revenue stream model: management fees from fund operations plus direct investment returns from capital deployed.
The structure contrasts with traditional development models where value created through residential projects is generally retained at the project level. Under the Funding Deed arrangement, value is intended to be shared with AEG Funds to support their attractiveness to investors and facilitate the establishment of multiple development Funds over time.
The structure allows AEG to scale its funds management business without taking on direct development risk, while retaining optionality to participate in project upside through co-investment.
Canberra growth corridor positioning
Chinnerys is described as one of the largest remaining residential development opportunities within the Canberra-Bungendore growth corridor. The site is located approximately 30 minutes from Canberra, immediately north of the established Elm Grove and Elmslea communities.
A key feature is proximity to Headquarters Joint Operations Command (HQJOC), Australia’s primary military operational headquarters, located approximately 15 kilometres from the project. Chinnerys represents the closest residential land to HQJOC. The broader Canberra region contains one of Australia’s largest concentrations of defence and national security employment, including Russell Offices (ADF Headquarters), HMAS Harman, the Australian Defence Force Academy and Royal Military College Duntroon.
The company believes demand for new residential housing within the region is supported by:
- Continued population growth within the Canberra region
- Lifestyle migration from Canberra to surrounding regional centres
- Limited availability of new residential land supply
- Significant government and defence employment within commuting distance
- Continued investment in defence, national security and technology capability
Defence and government employment concentration, combined with limited land supply, positions Chinnerys to benefit from structural demand tailwinds over its 20-year development horizon.
Development timeline and rezoning status
A current rezoning application covers approximately 300+ acres expected to yield over 1,200 mixed residential lots. The remainder of the land has been master planned and may yield up to an additional 2,000 lots based on future zoning and property size.
The project is intended to deliver residential lots together with seniors living, build-to-rent, retail and commercial development. The site benefits from strong transport connectivity, established community infrastructure and proximity to major employment centres.
The Funding Deed has substantially similar terms to the Cowra Property Funding Deed announced 19 May 2026. Under the Deed, AE Landco (a subsidiary of AEG) has discretion to determine the nature, extent, timing, design and titling arrangements for development of the land. The Landowner must cooperate with and support development approval processes and cannot engage third parties in relation to competing development proposals during the term.
The Cowra Property Funding Deed was the first binding arrangement in AEG’s pipeline, establishing the Residual Land Value pricing methodology and the 10 + 10 year exclusivity structure that the Chinnerys deed now replicates across a substantially larger landholding.
Management commentary
David Nolan, Managing Director
“The Chinnerys Funding Deed is the most significant step in building out AEG’s property funds management business, giving AEG long-term funding rights over 3,200 residential lots within one of Australia’s most attractive regional growth corridors. Importantly, the acquisition price for all 3,200 lots incorporates a 30% gross profit margin for AEG Funds, which equates to approximately $174,000 per lot based on recent comparable sales. AEG has the opportunity to co-invest in its Funds up to 100%, capturing both investment returns and investment management fees. Together, these arrangements provide AEG with a scalable funds management model supported by a long-term pipeline of development opportunities and the ability to participate directly in project returns through co-investment.”
Alex Brinkmeyer, Chairman
“These arrangements reflect a long-term commitment to building a significant ASX-listed property funds management business. Historically, value created through residential development projects would generally be retained at the project level. Under this structure, value is intended to be shared with the AEG Funds to support their attractiveness to investors and facilitate the establishment of multiple development Funds over time. I believe the long-term value created through a successful property funds management business has the potential to exceed the value that would otherwise be realised through a traditional development model. As AEG’s largest shareholder, my interests are directly aligned with those of all shareholders and focused on building long-term value through the growth of the Company.”
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What comes next
The Funding Deed is conditional on required ASX and shareholder approvals under ASX Listing Rule 10.1. A general meeting will be held at a later date for shareholder approval.
Upon the Deed becoming unconditional, AEG will issue 60 million shares to Share Star Holdings Pty Limited, an entity associated with Mr. Brinkmeyer, as consideration for the funding rights granted. AEG can begin facilitating Fund acquisitions of development stages once approvals are in place, with stage acquisition prices determined by an independent valuer at the time each stage is acquired.
Shareholder approval represents the key near-term catalyst. Once approved, AEG will have secured its cornerstone asset pipeline and can begin deploying the funds management model across the 3,200-lot development programme.
For investors wanting to see how Chinnerys fits within AEG’s broader platform, our full explainer on AEG’s 4,200-lot pipeline covers the three-fee revenue model, the Equity Story distribution channel, and the combined pipeline across NSW and ACT growth corridors.
Ready to Explore How AEG’s Funds Management Model Could Deliver Long-Term Returns?
Aland Equity Group has secured exclusive funding rights over 3,200 residential lots with a locked-in 30% development margin, potentially generating $174,000 per lot for its Funds across a 20-year term. The company’s dual revenue model combines investment management fees with direct co-investment returns, creating a scalable platform underpinned by a contractually secured pipeline.
To access detailed investor presentations, corporate updates and the full strategic roadmap behind AEG’s property funds management business, visit the Aland Equity Group investor centre. Stay informed on shareholder approval timelines, Fund establishment progress and deployment across the Chinnerys and Cowra projects.