FAQ

FAQ

Q: "How do I invest with OzProp?"

A: You may either:

Contact OzProp by email or call us on +27 (0)83 603 3333 (international) or +61 (0)402 01 9527 (Australia) to request a copy of the relevant Information Memorandum. Alternatively Register online.

Applications can only be made on an application form attached to an Information Memorandum and must be accompanied by a cheque or funds transfer in Australian Dollars.

Q: "Am I allowed to invest with OzProp?"

A: You will generally need to be a wholesale investor. Although OzProp's activities are done under the auspices of ASIC licensed company, OzProp Capital (Pty) Ltd, OzProp does not operate a registered managed investment scheme. One impact is that only wholesale clients (as defined in the Corporations Act) can invest.

Your investing entity will be classified as a wholesale investor if you or your entity (if you are in control of the entity) meets the criteria in the categories listed below. However, if you do not fall into one of these categories, OzProp may still have some ability to assist you, so please do contact us.

To qualify, an investor must satisfy one of the following:-

a. The investor is a wholesale client for the purposes of section 761G of the Corporations Act, in that:
i. The price payable by the investor for its units is a minimum amount of $500,000.00; or
ii. The Units are acquired by the investor for use in connection with a business that is not a small business (as defined in section 761G(12) of the Corporations Act);

b. The investor is a wholesale client for the purposes of section 761G of the Corporations Act, in that the Units are not acquired for use in connection with a business and the investor has given to the provider of the Units, before the issue of the Units, a copy of a certificate Given within the preceding 24 months by a qualified accountant (as defined in section 9 of the Corporations Act) that states that the investor;

c. The investor has net assets of at least $2,500,000.00;

d. The investor had a gross income for each of the 2 financial years immediately prior to subscribing for units of at least $250,000.00 a year;

e. The investor is a professional investor, as defined in the Corporations Act;

f. The investor is otherwise deemed to be a wholesale client for the purposes of the Corporations Act;

g. The investor is a sophisticated investor in respect of whom the requirements of section 761GA of the Corporations Act have been satisfied; or

h. The investor has applied for units in response to a personal offer made to the applicant as part of a small scale offering in accordance with section 1012E of the Corporations Act.

Q: "What is "control?"

A: "Control" means you have the capacity to determine the outcome of decisions about the company or trust's financial and operating policies of the investing entity.

The practical influence you can exert (rather than the rights you can enforce) is the issue to be considered and any practice or pattern of behaviour affecting the company or trust's financial or operating policies is to be taken into account (even if it involves a breach of an agreement or a breach of trust).

However you do not control a company or trust merely because you and a third entity jointly have the capacity to determine the outcome of decisions about the company or trust's financial and operating policies.

Q: "If I am a retail investor, can I still invest with OzProp?"

A: OzProp can accept a limited number of applications in addition to the categories noted above.
In addition to this, many OzProp investors meet the wholesale investor test because they combine the assets or income with that of their super funds. See the accountant's certificate and discuss this with your accountant.

Q: "What is the minimum amount I can invest with OzProp?"

A: OzProp’s income-focused investments will accept investments from A$50 000 upwards. The minimum for value-add opportunities differ from project to project but will always have a minimum of A$100 000.

Q: "Who Manages my Investment?"

OzProp Capital (Pty) Ltd, is an associated company that has entered into a service agreement with OzProp to issue units, monitor all processes and ensure that all steps surrounding your investments comply with ASIC regulations.

It has been granted an Australian Securities Investment Commission (ASIC) license to issue investment products to wholesale investors. Its directors and executives, as well as their management practices, are subject to ASIC regulations. It also carries appropriate professional indemnity insurance as required by ASIC.

OzProp Pty Ltd is the asset manager under a Management Services Agreement with AGPL.

OzProp’s role is:

GSED Pty Ltd is an associated company that may enter into a service agreement with the funds OzProp manages to provide leasing and management of individual properties. This includes:

  • Financial Management
  • Lease Management
  • Building Management

The directors and management of the above companies are experienced in the operation and management of property trusts, as well as a wide variety of other relevant disciplines, including the development and coordination of leasing campaigns, property refurbishment and marketing. Their expertise will be used to maximise the performance of your investment.

Q: "How is income distributed?"

A: It is the responsibility of the trustee of each Real Estate Investment Trust to distribute net income from the property in accordance with the investment strategy of each Real Estate Investment Trust.

Each Real Estate Investment Trust has entered (or will enter) in an agreement with the trust and AGPL to provide administration services to the trusts and will authorise the distribution of each Investor's share of the cash available for distribution according to the number of units that the investor holds in the trust.

Generally distributions will only be made to investors if there is sufficient cash, including sufficient funds to meet future expenses, after taking into account future expected income.

Q: "Can Superannuation Funds invest?"

A: Each trust is structured as a unit trust. Complying and self-managed superannuation funds can participate.

Q: "What is the nature of the investment?"

A: Each investor effectively becomes a part owner of the property. The trust manager will hold the property for and on behalf of each investor in accordance with their individual interest. Issues relating to a trust will be voted on by investors as provided for in the Constitution. Voting rights will be proportional to the amount of each investor's interest.

By completing and sending an application form to the manager, you are agreeing to be bound by the Constitution and the acknowledgements contained within the offer document.

Q: "What are non-recourse borrowings?"

A: All borrowings on behalf of a trust are secured solely against trust property (non-recourse to investors). This means that you have no financial or other commitment beyond your subscription.

Q: "What is tax advantaged income?"

A: Where the property is eligible for significant tax deductions based on building allowances, plant and equipment depreciation, amortisation, and interest and finance costs of borrowing, further deductions are available for the amortised costs of the offer. The total amount of deductions claimed for depreciation and building allowances will reduce the cost base of the property.

Q: "What is the role of the Trustee?"

A: The trustee's role is to ensure investor's interests are being protected at all times. In general terms, the trustee's role is to hold all the assets and bank accounts of the trust, on behalf of the investors.

Q: "How do I get paid?"

A: All rental income and expenses of each investment trusts is received and paid by the specific investment trusts bank accounts that hold the property. The investment trusts, after paying all expenses (including bank interest etc.), distribute available income to the unit holders on a quarterly basis.

Each investor will rank for distribution of income in proportion to the income entitlement for that number of units owned by each investor.

Q: "When will I receive updates on my investment?"

A: You will be kept aware of the status of your investment with bi-annual newsletters.

Q: "Does OzProp have a liquidity mechanism?"

A: There is no secondary market for units in our trusts, i.e. investments have no buy-back facility. Investor's capital is invested for the life of the fund or until the trust makes capital return to investors as a result of an asset management activity.

Q: "Can I sell my investment?"

A: Investors may exit earlier by the independent sale of their units to a third party and should contact OzProp to assist with the relevant documentation.

Q: "How long is the investment for?"

A: Generally, the term of a trust is structured to be between five to seven years before being wound up depending on the nature of the investment. However each real estate investment trust has its own investment timeline. There is no minimum period - should an opportunity arise to sell the property(s) prior to this time, the trust will be wound up accordingly.