We are a specialist real estate investment firm
OzProp’s focus lies predominantly on the East Coast in the states of Queensland and New South Wales
Please read through our FAQ to get answers to some of your more pressing real estate investing questions.
If you have any additional questions, please don’t hesitate to give us a call. We will be happy to continue the conversation.
A. You may either:
Contact OzProp by email on admin@ozprop.com.au, call us on +61 (0)402 01 9527 (Australia) or +27 (0)83 603 3333 (International) 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.
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 operates an unregistered managed investment scheme. As a consequence 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 contact us.
To qualify, an investor must satisfy one of the following:
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
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.
A. OzProp’s income-focused investments will accept investments from A$50,000 upwards.
The minimum for value-add opportunities differs from project to project but will always have a minimum of A$100,000.
A. OzProp Capital (Pty) Ltd (OCPL) 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 Holdings Pty Ltd is the asset manager under a Management Services Agreement with OCPL.
OzProp Holdings role is:
– Acquisition
– Due diligence
– Asset management
– Implementation of the investment strategy
– Provide administration services
– Provide financial reporting
– Manage the exit strategy
AUS CPM 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:
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.
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) into an agreement with OCPL to provide it with administration services and to 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.
A. Each trust is structured as a unit trust. Complying and self-managed superannuation funds can participate.
A. Each investor effectively becomes a part owner of the property by being allocated units in the unit trust. The trustee/ 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.
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.
A. Where the property is eligible for 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.
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.
A. All rental income and expenses of each investment trust is received and paid by the specific investment trust’s segregated 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.
A. You will be kept aware of the status of your investment with bi-annual newsletters.
A. There is no formal 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.
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.
A. Generally, the term of a trust is structured to be between 5 and 7 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.