|Specialist Residential Property Impact Fund (Fund)|
|Fund design and target market||The Fund is designed to:
• deliver quantifiable social impacts, as measured by the number of people with disabilities that are able to move from less suitable accommodation settings, and/or enjoy independent living for the first time as a result of the Fund’s investments; and
• provide stable long-term yield and the opportunity for long-range capital growth.
The Fund’s target market is wholesale and institutional investors that share the Fund’s impact objectives, and extends to retail investors (including self-managed superannuation funds) that also share those objectives and that:
• do not require access to their capital for a minimum of three (3) years from the date of investment and, if seeking the opportunity for capital appreciation (in addition to yield) have a minimum investment timeframe of 10 years; and
• have a high growth or aggressive risk profile and wish to allocate long-term capital to a higher risk investment like the Fund as part of their portfolio; or
• have a more moderate growth or balanced risk profile and wish to allocate some long-term capital to a higher risk investment like the Fund as a proportionate part of a larger portfolio; and
• understand and are comfortable with the fact that investments with higher targeted returns like that of the Fund come with higher risks, including the risks associated with illiquid specialised property assets (and other risks associated with the Fund) as detailed in the PDS.
The Fund’s design and target market details should not be considered personal advice. Your own personal circumstances will affect your decision about an investment in the Fund. Investors should not invest in the Fund unless they understand and are comfortable with, and have sought their own advice concerning, the risks associated with investing in the Fund.
|Minimum Investment||The minimum initial investment as a lump sum is $25,000.|
|Additional investments||If you already hold Units, you can make additional investments. The minimum additional investment (excluding distribution reinvestment) is $10,000.|
|Fund structure||The Fund is an unlisted Australian unit trust established by the Constitution. It is a managed investment scheme which has been registered with ASIC, ARSN 632 123 794.|
|Investment strategy and structure||The Fund has been established to provide Investors with exposure to a portfolio of Australian residential property assets with appropriate specialised design and construction attributes and inclusions to qualify for enrolment and operation in the Australian federal Government’s SDA scheme. The Fund adopts a conservative approach to capital management. Debt (if any) will range from 0-15% of the Fund’s gross assets at the time of borrowing, but at times the Fund may borrow up to a maximum of 25% of the Fund’s gross assets at the time of borrowing.
The Fund may invest via one or more wholly-owned sub-trusts including the Specialist Residential Property Trust (Sub-Trust), an Australian wholesale unlisted unit trust. The Sub-Trust may invest into underlying properties directly or indirectly.
|Target distribution rate||The Fund is seeking to make regular income distributions at a target net rate of 8.25% p.a. (pre-tax, net of all fees and costs).
Allowing for property assets not yet tenanted and inter-tenancy vacancy, the Fund targets a gross income of 12.25% p.a., before allowing for the costs associated with operating the Fund’s assets estimated at 1.75% p.a. (excluding depreciation and amortisation) and operating and management expenses of the Fund itself of 2.05% p.a. (inclusive of estimated Performance Fee) plus indirect costs of 0.20% p.a.
The Fund anticipates that the above assumptions will enable the Fund to reach its target distribution rate once capital is fully deployed, which the Fund expects will be when the Fund has been fully operational for at least 12 months. Please note that the Fund estimates that the distribution rate may range from 5.5% to 7.5% p.a. in the initial 12 months of operations of the Fund as initial acquisitions are completed and become income-producing, before increasing to and sustaining at the target rate.
No allowance is made for realised or unrealised capital gains or capital losses in these targets.
Please note, these net distribution rates are targets and not a forecast and the Fund may not be successful in achieving these distribution rates or any return on the Fund’s investments. No distributions or returns are guaranteed.
|Minimum investment term and timeframe||The minimum investment term for an investment in the Fund is three (3) years. If seeking the opportunity for capital appreciation (in addition to yield) those considering an investment should have a minimum investment timeframe of 10 years. Please note, the Fund is illiquid and there is no right for you to withdraw your investment.
The Fund aims to make routine withdrawal offers twice yearly (in February and July) only to those Investors who have held their respective Units for at least three (3) years. For initial Units, this is three (3) years from the date that you acquire the initial Units and includes any Units issued under a distribution reinvestment in connection with any Units you hold.
For any additional Units, this is three (3) years from the date that you acquire each tranche of additional Units, although the Fund may determine in its absolute discretion to include additional Units in a withdrawal offer if your initial Units have been held for at least three (3) years.
However, there are many factors which can affect our ability to make withdrawal offers and which may delay your opportunity to withdraw from the Fund. Any withdrawal offers must be made in accordance with the Constitution and the Corporations Act. The fund will make information available about any withdrawal offer at the Fund Documents section of this website.
|Distributions||Distributions, if any, will be paid quarterly (ending March, June, Sept and Dec each year), within fourteen (14) Business Days after the last day of each quarter once the Fund is fully operational. The Fund anticipates paying the first distribution following the end of the December 2019 quarter, however, no distributions or returns are guaranteed.|
|How to invest|
|Before investing please ensure you read this section of the website and also read the PDS and associated documents carefully and in full. If you choose to invest complete the application form available on this website or by contacting us on 02 9248 0480. Once your application is complete, send your application money to:
ORS Applications Account – SRPIF
|Key Fund details|
|Registration date||21 March 2019|
|Fund size and performance||The Fund is in initial start-up phase. The Fund’s goal is to grow the Fund to a circa $100M portfolio of around 150 properties over the first two years of the Fund’s operation. It intends to invest in a variety of SDA complying residential properties in Australian capital cities and key regional markets as it expands its portfolio. The Fund is intending to commence its investment with a portfolio of up to 24 properties in and around Brisbane. The Fund may not be successful in meeting this objective.
For the latest information on the Fund size and performance since inception, please go to the Updated Information section of this website. You should read this information before investing in the Fund. Alternatively, you can obtain this information free of charge by contacting our investor service team by phone on 02 9248 0480, or by email at firstname.lastname@example.org, or you can contact your investment adviser.
|Risk/return profile||High risk — The Fund will focus on specialised real property assets, with the potential for higher returns than lower risk investments, however, there is also the greater potential for below-average returns and/or loss of capital than lower risk investments. Investors should not invest in the Fund unless they understand and are comfortable with, and have sought their own advice concerning, the risks associated with investing in the Fund.|
|Risks||An investment in the Fund is subject to risks including but not limited to the following:
• liquidity risk
• property risk
• return risk
• related party and conflicts of interest risk
• diversification and concentration risk
|Unit pricing||The issue price of Units is determined under the Constitution by reference to the net asset value of the Fund pertaining to the relevant class of Units, and the number of Units on issue in that Unit class.|
|Unit pricing frequency||The market value and net asset value of the Fund are normally determined at least monthly using the market prices and Unit prices of the assets in which the Fund is invested.|
|What fees does the Fund pay?|
|Management costs of the Fund consisting of:||Estimated to be a total of 2.25% p.a. of the net asset value of the Fund. Consisting of the RE fees (including custodian, registry, administration fees and expenses recovery); Management fees; estimated Performance Fee; and Indirect costs, as set out below:|
|– RE fees and expense recoveries||Estimated to be 0.30% p.a. of the net asset value of the Fund.|
|– Management fees||1.5% p.a. of the net asset value of the Fund (calculated and payable monthly in arrears).|
|– Performance Fee||Estimated to be 0.25% p.a. of the net asset value of the Fund. Calculated as 20% of the amount by which the accumulated investment return of the Fund exceeds the accumulated return of the Benchmark during each year to 30 June.|
|– Indirect costs||Estimated to be 0.20% p.a. of the net asset value of the Fund|
|Benchmark||The greater of 6.0% and the Average Cost of Debt (if any) for the prior 12 months.|