Aland Equity Group Executes Property Funding Deed for Chinnerys Development

Aland Equity Group (ASX: AEG) has executed a property funding deed over the 1,000-acre Chinnerys master-planned mixed residential development at Bungendore in New South Wales.

The deed replaces a heads of agreement announced in May and gives AEG long-term property funding rights over more than 3,000 mixed residential lots.

The Chinnerys project—the largest and most strategically significant asset in AEG’s property pipeline—sits within the Canberra-Bungendore growth corridor.

The arrangement remains subject to shareholder approval because the land is owned by an entity associated with AEG chair Alex Brinkmeyer.

Long-Term Funding Rights

The Chinnerys funding deed gives AEG subsidiary Aland Equity Land exclusive rights to facilitate financing for the acquisition and development of project stages through funds established by AEG.

The term runs for an initial 10 years, with an option for Aland Equity Land to extend the arrangement for a further 10 years.

The rights will be secured by mortgage, caveat, and an irrevocable power of attorney granted by the landowner.

AEG will issue 60 million shares to Mr Brinkmeyer as consideration for the rights, subject to the deed becoming unconditional and shareholders approving the transaction.

Fund Model Takes Shape

AEG will act solely as fund manager and potential co-investor, with all development execution to be handled by experienced external development groups outside the AEG group.

The structure allows AEG to co-invest in its funds, giving it exposure to both investment returns and investment management fees, with each residential stage acquisition price to be determined by an independent valuer using a methodology that incorporates a 30% gross profit margin for AEG funds.

Based on comparable Bungendore sales over the past five years, the margin equates to about $174,000 per lot, with an illustrative 100-lot fund showing potential value to the fund of $17.4 million.

“The Chinnerys funding deed is the most significant step in building out AEG’s property funds management business, giving us long-term funding rights over 3,200 residential lots within one of Australia’s most attractive regional growth corridors,” managing director David Nolan said.

“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."

Defence Demand Drivers

Situated immediately north of the established Elm Grove and Elmslea communities in Bungendore, Chinnerys is intended to deliver seniors living, build-to-rent, retail, and commercial developments in addition to the residential lots.

The site is located approximately 30 minutes from Canberra and about 15 kilometres from Headquarters Joint Operations Command, Australia’s primary military operational headquarters.

The broader Canberra region contains major defence and national security employers including Russell Offices, HMAS Harman, the Australian Defence Force Academy, and Royal Military College Duntroon.

AEG expects population growth, lifestyle migration from Canberra, constrained residential land supply, and continued defence investment to support long-term housing demand in the corridor.