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Opus Income & Capital Fund No.21 - Offer No.2

CLOSED

Opus Property Trusts are different from LPTs

Reports of market volatility in the Listed Property Trust (LPT) sector have focussed attention on the security of debt financing streams and interest rate hedging strategies across the property sector.

To clarify the situation for Opus investors, they provide the following information:

Security of debt financing stream 
Opus Capital Group operates wholly within the domestic Australian market, with a deliberate focus on the robust eastern seaboard commercial office market (no exposure to US property market).
Debt funding for Opus property funds is provided exclusively by a panel of domestic banks, who understand Opus’ business and the quality of fund assets (no offshore financing).
Opus’ funding is long-term senior bank debt (on average five years, to 2012).

 

 
Product Disclosure Statement
Lonsec Research Offer No1
Lonsec Research Offer No2
PIR Research Offer No1

Security of interest rate range
Opus has a hedging policy in place to ensure interest rates remain within a range that allows them to continue to achieve their targeted distributions.

Property fundamentals
Active management is an important part of the Opus Investment Philosophy. Opus continues to achieve targeted distributions across its portfolio. Some of the factors contributing to this track record include: 

selection of quality commercial buildings
rental income supported by strong lease covenants
distributions to investors are based on the rental income earned by the assets (no form of capital support).

The Australian commercial property market continues to perform strongly, and investors in their funds continue to benefit from regular monthly income with capital growth potential.

The Opportunity

The opportunity exists to invest in a portfolio of complimentary assets benefiting from well considered diversification, achieved through various geographic locations, property sector types and a range of tenants, including government, national and local businesses with a diverse lease expiry profile.

Investment Criteria
The foundation asset of the Fund is Zurich House located at the Gold Coast. Only assets that satisfy the Opus Investment Criteria including the potential to sustain the Minimum Targeted Distribution of 8.75 cents per Unit and also have potential for capital growth will be included.

Established Property Selection Criteria
Opus Capital has a history of identifying and evaluating property investment opportunities, with a portfolio of development assets, together with passive holdings of office, industrial and retail property, in excess of $450 million.

The Opus Income & Capital Fund No. 21 - Offer No. 2 structure incorporates the same standards of investment selection as other Opus Property Trusts. The Opus Investment Committee will regulate asset selection activities to ensure they are compliant with the Opus Investment Philosophy and Fund Strategy.

Rigorous Investment Processes
Stringent asset management processes underpin the performance of assets. Systems designed by Opus Capital provide quality management information necessary to monitor the performance of assets against benchmarks.

The fee structure of the Fund fosters active management and aligns our management objectives with your best interests. This alignment is essential for a fund focused on capital preservation and growth as well as income generation.

Investment Strategy
Our geographic bias will be toward capital and regional cities along the eastern seaboard of Australia. The focus will be on a clear understanding of local economy drivers and the potential for a location to leverage value from capital infrastructure investment by government or the private sector.
 

Distribution to Investors: The minimum Targeted Distribution is 8.75 cents per Unit p.a. *
Distributions are paid monthly.
Investment Strategy:
Build a diversified portfolio with quality properties meeting the Opus Investment Criteria, providing regular tax-advantaged income and maximising the capital growth potential of the portfolio.
Fund Structure: This unlisted, open-ended Fund is an ASIC-registered managed investment scheme. The Custodian is the Public Trustee of Queensland (the Custodian). The Responsible Entity is Opus Capital Limited (the Manager or Opus Capital).
Issue Price: The Issue Price will be calculated and published on the Opus Capital website, www.opusaustralia.com, on a daily basis.
Alignment of Interests: The Fund’s Constitution is written to ensure the alignment of the interests of Investors and the objectives of the Manager, with the fees payable to the Manager being predominantly based on performance.
Investment Period:
The Manager will present to Investors the alternatives for the future of the Fund within four years from the issue date of this Offer. The alternatives may include continuing the Fund in its present form, applying to list on an exchange, or winding up the Fund.
Withdrawal Mechanism: Investors will have the opportunity to withdraw from the Fund by means of periodic withdrawal offers made by the Manager in accordance with the Constitution and section 601KB of the Corporations Act. Further details are provided in the section headed Additional Information.
Reinvestment Option: Investors may opt to reinvest distributions by advising the Manager. The Manager reserves the right to suspend this option at its absolute discretion.
Investment Criteria: The Fund will only acquire assets which meet the Opus Investment Criteria and demonstrate the ability to benefit the Fund and contribute to meeting the Targeted Distribution.
* Warning: This is a Targeted Distribution only and is not guaranteed by the Manager. There is a risk in placing undue reliance on the Targeted Distribution rate. Prospective investors should review the Targeted Distribution in conjunction with the Risk Factors set out in the PDS and the assumptions on which the Targeted Distribution is based. The Key Forecast Assumptions are set out in the Financial Information section of the PDS.
 
Tax-Advantaged Income: Capital allowances for structure, plant and equipment and the writing off over time of capital raising and borrowing costs mean a significant portion of the distributions paid to Investors is tax-advantaged. *
Diversified Portfolio: A Fund focus is the risk mitigation benefits provided by a property portfolio diversified by geographic location, property type, tenant industry and lease expiry profile.
Eligible Investors: The investment vehicle is a unit trust, allowing for participation by all types of investors, including self managed superannuation funds.
Minimum Application Amount: $10,000 with further increments of $1,000 or above. The Manager reserves the right to adjust these amounts from time to time.
Fund Equity: Under this Offer, the Manager will seek to raise an additional $100 million (Maximum Subscription for this PDS) and accept $5 million in over subscriptions for the Fund. Further capital raising offers may be made by the Manager in the future.
Borrowings: Fund assets will be geared. Targeted gearing ratio is 40% – 60% LVR across the portfolio. Refer to Additional Information for further details of the Borrowings.
Unit Pricing: Investors will share in any increase in the Net Value of the assets of the Fund, following revaluation of the Portfolio Properties, through re-pricing of the Units.
Taxation: Investors should seek their own advice on the implications of this structure within their overall particular taxation position.
Subscription Monies: Prior to monthly allotment of Units, all Investor Subscriptions will receive interest at cash management rates less bank fees.
* These deductions will reduce the cost base of Properties upon sale. Refer to Taxation Matters.

The Opportunity
You are offered the opportunity to become a part owner of a growing commercial property portfolio, actively managed in accordance with the Opus Investment Philosophy and designed to provide Investors with strong, regular, tax-advantaged distributions and the right to share in the capital growth prospects of the Portfolio.

The Portfolio currently consists of Zurich House on the Gold Coast, Cairns Corporate Tower, Cairns, the Mulgrave Commercial Building in Melbourne and 437 St Kilda Road, Melbourne. With the proceeds of this Offer, the Fund will acquire additional properties that meet the Opus Investment Criteria and demonstrate an ability to contribute to the Fund’s objectives.

The Offer
Investors are invited to subscribe for Units in the Opus Income & Capital Fund No. 21, thereby joining the Existing Investors, who currently hold Units in the Fund.

Minimum Investment
You may apply for a minimum of $10,000 worth of Units or greater, in increments of $1,000 or more.

Issue Price
Under this Offer, Units will be issued at a price calculated by the Manager and the unit price will be published on the Opus Capital website www.opusaustralia.com.

Investment Return
The objective of the Fund is to maximise total return to Investors through monthly distributions, taxation benefits and capital growth, if any.

The Investment Manager
Opus Capital Limited is a specialist funds management company, licensed by the Australian Securities and Investments Commission (ASIC) to act as the responsible entity for a range of managed investment schemes.

Opus Capital are recognised for their commitment to the Opus Investment Philosophy and their values-based business culture - creating wealth through an exhaustive asset selection process, professional management and defined Capital Profit and Exit Strategies.

Opus Capital's vision is to be recognised as a leading investment manager with a reputation for sound, profitable decisions based on an uncompromising investment philosophy.

Business Culture
An investor-centric focus is inherent in the Opus Capital business culture and gains expression through its rigorous asset selection criteria, active asset management, high standards of corporate governance, and performance-based fee structures.

The Credentials of Opus Capital
Opus Capital has a proven history of identifying and acquiring premium property investments featuring secure income streams which deliver regular tax advantaged returns. The Opus Capital name is synonymous with property investments that deliver higher investment returns generated by capital growth.

Therefore, part of the property feasibility study for each acquisition includes detailed consideration of the exit strategy and hence, how potential for capital profit may be realised at a future date.

Through the sale of a series of assets from among its 14 investment funds, Opus Capital has delivered to its investors capital profits ranging from 30% to 71%.* These outcomes demonstrate Opus Capital’s relentless focus on total return to investors.

Building the Fund
Opus Capital evaluates numerous Australian property investment opportunities each year. Many of these opportunities are quality commercial properties falling into the range of $10 million to $50 million. Typically these properties are multi-tenanted, require active management and therefore generally have a greater potential to add value and hence, capital growth. These properties fall outside the reach of most private investors.

* Warning: Past performance is not a guaranteed indicator of future performance.


Opus Income & Capital Fund No.21 - Rebate
Amount
Invested (excl GST)
Cash
Rebate
Units
Invested
$10,000 plus 3.25% na


Simply download an Investment Brochure/PDS above. It’s that easy!
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