Summary
This product is likely to be appropriate for a consumer seeking regular income returns and with the potential for capital growth, to be used as generally a Satellite investment within a portfolio where the consumer has a medium or long term investment timeframe, low to medium risk/return profile (subject to the consumer’s intended product use as described under ‘Investment products and diversification’) and needs medium to long term access to capital.
Details
Consumer's investment objective
Capital Growth
In target market
Capital Preservation
Not in target market
Capital Guaranteed
Not in target market
Income Distribution
In target market
More Information:
The Fund is designed for investors looking for capital growth and regular income returns. It aims to build a diversified portfolio of residential property assets that provide relatively high, consistent and growing long-term income returns for investors with the potential for capital growth with a total return over time of at least 10% p.a. (net of fees and expenses and before tax).
Consumer's intended product use
Solution/Standalone - a large allocation (75-100% of portfolio)
Not in target market
Major Allocation - (50-75% of portfolio)
Core Component - a medium allocation (25-50% of portfolio)
Potentially in target market
Minor Allocation - (10-25% of portfolio)
Satellite - a small allocation (<10% of portfolio)
In target market
More Information:
The Fund invests in Australian residential property, with around 80% of investments to be in Sydney, Melbourne & Brisbane. The Fund aims for 90 – 100% of the properties
acquired or constructed to generate long term passive rental income, comprising of single family homes and duplexes in addition to small and large multi tenancy properties.
For investors with a low to medium risk and return profile, the Fund may be suitable for the target market as a satellite/small allocation component.
For investors with a high to very high risk and return profile, the Fund may be suitable for the target market as a satellite/small allocation up to a core portfolio component.
Investors seeking to invest greater than 50% of their total investable assets in the Fund (as a Solution/Standalone component) are not in the target market.
Consumer's investment timeframe
Short (<= 2 years)
Not in target market
Medium (>2 years)
In target market
Long (>8 years)
In target market
More Information:
The minimum suggested time frame for holding investments in the Fund is between 5 – 8 years (medium to long term investment) and is therefore likely to be appropriate for a
consumer who has a medium to long investment timeframe.
In the case of investors holding Deposit Builder Units, the minimum investment period is 2 years.
Investors holding Wholesale Units are able to withdraw their funds at the three-year anniversary of their allotment date, subject to providing a six-month notice period prior to
redemption.
Consumer's Risk (ability to bear loss) and Return Profile
Low - can tolerate up to 1 period of underperformance over 20 years
Potentially in target market
Medium - can tolerate up to 4 periods of underperformance over 20 years
In target market
High - can tolerate up to 6 periods of underperformance over 20 years
Potentially in target market
Very High - can tolerate over 6 periods of underperformance over 20 years
Potentially in target market
Extremely High - the investor seeks extremely high risk, speculative or complex products
More Information:
Residential property has historically had the lowest risk profile and yet highest returns of most major Australian asset classes over the 30 years ending March 2018.
However, there are risks involved in investing in the Fund, including:
- The Fund’s potential gearing ratio on average across the portfolio which will generally not exceed 50%,
- Significant falls in property values may have a negative impact on the Fund’s gearing ratio and changes in market conditions may impact the value of existing property assets and acquisitions of future properties, and
- The Fund is illiquid with limited opportunities for investors to withdraw capital. Investors with a low risk profile are potentially in the target market, if units in the Fund are held as a satellite/small portfolio component.
Investors with a medium risk and return profile are in the target market, if units in the Fund are held as a satellite/small portfolio component.
Investors with a high or very high risk and return profile are potentially in the target market if units in the Fund are held as a core portfolio component. Such investors are in the target market if units in the Fund are held as a satellite/small portfolio component.
Consumer's need to withdraw money
Daily
Not in target market
Weekly
Not in target market
Monthly
Not in target market
Quarterly
Not in target market
Yearly
Potentially in target market
More Information:
There is no current redemption facility available to any investors.
There will be an opportunity in November 2023 for investors to request a 100% redemption of their investment if total redemption requests are less than 30% of the Fund’s equity. In this event, 100% of investors’ redemption requests will be met. If total redemption requests are greater than 30% of the Fund’s equity, partial redemption requests will be met. Investors will have a further opportunity to fully realise their
investment in November 2028.
Investors must therefore be comfortable with a limited ability to redeem their interests from the Fund until November 2028, or otherwise not look to withdraw money from the Fund for the first two years of their investment if the investor holds Deposit Builder Units (subject to certain pre-conditions), or for three years as a holder of Wholesale Units (subject to providing a six-month notice period prior to redemption).
By November 2028, the Issuer will either have listed the Fund on the ASX, or within six months thereafter, subject to a vote of investors, implement another exit mechanism (such as winding up the Fund or providing a full redemption offer) allowing investors to fully realise their investment in the Fund.
*At any time, investors can transfer units in the Fund to another investor, subject to completing a transfer form and the Issuer’s approval. The Issuer does not guarantee that there will be an active buyer.