Aurelia Residences — Exit Strategy
The primary exit mechanism is the progressive sale of all 180 residential units through the sales strategy outlined in Section 7. This approach maximises the total proceeds realised by capturing the full retail premium on each unit. Based on the sales velocity…
Section 14 · Business Plan
Exit Strategy
The primary exit mechanism is the progressive sale of all 180 residential units through the sales strategy outlined in Section 7. This approach maximises the total proceeds realised by capturing the full retail premium on each unit. Based on the sales velocity…
Delivered through phased unit sales, with refinancing and portfolio-sale options, on a 24–30% levered IRR.
14.1 Primary Exit: Individual Unit Sales
The primary exit mechanism is the progressive sale of all 180 residential units through the sales strategy outlined in Section 7. This approach maximises the total proceeds realised by capturing the full retail premium on each unit. Based on the sales velocity projections, ARD anticipates achieving 100% sell-out within 48–54 months of project inception, with 80%+ of units transferred by Month 42.
14.2 Secondary Exit: Bulk Disposal
In the event that individual sales velocity declines below projected levels, ARD retains the option to negotiate bulk disposal of remaining units (typically 15–25 unsold units) to institutional investors, real estate investment trusts, or corporate housing portfolios. Bulk disposals typically occur at a discount of 8–12% to individual retail pricing but provide certainty of cash realisation and accelerated exit timeline.
14.3 Alternative Exit: Rental Portfolio Conversion
ARD may elect to convert a portion of unsold units into a long-term rental portfolio, either self-managed or contributed to a listed or unlisted REIT structure. This alternative is attractive if rental yields exceed 7.5% net and capital appreciation fundamentals remain strong. The retained rental portfolio of 15–20 units referenced in Section 6 provides a foundation for this strategy.
14.4 Exit Timeline & Return Distribution
Investor returns will be distributed progressively as unit sales proceeds are received, with the following projected distribution schedule:
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Month 30–36: Initial capital return distributions commence as construction-phase sales close.
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Month 36–42: Accelerated distributions as post-completion sales at premium pricing generate substantial cash flows.
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Month 42–48: Final distributions including profit participation and carried interest, subject to the waterfall structure.
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Month 48–54: Wind-down of project SPV; final reconciliation and residual distributions.
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