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Peet Werribee Land Syndicate

No Current Peet Projects Available
Peet Werribee Land Syndicate
Cash Rebate 2.00% (incl GST)
Closing Date CLOSED
Minimum Investment $5,000 (thereafter increments of 1,000 units)
Investment Term Approximately 7 years
Research PIR Research   

CHAIRMAN’S LETTER

Dear Investor

The Peet Group has a long track record in setting up and managing investments in land syndicates and developments.

I am pleased to release the latest syndicate offering which provides the opportunity for investors to invest in the western growth corridor of Melbourne. Recent Victorian syndicates launched by Peet since the Global Financial Crisis are selling well and performing ahead of their respective PDS forecasts.

 

   
Product Disclosure Statement
Consulting Economist Report
Consulting Engineer Report 
Consulting Town Planner Report 
Independent Valuation 
Investigating Accountant Report  
 

 

The Peet Werribee Land Syndicate will purchase an 86 hectare parcel of land from Peet for $31.05 million (excluding GST). This acquisition is in line with the independent valuation for the site.

THE PROPERTY
The Property is located on Black Forest Road, Werribee and is approximately 33 kilometres west of the Melbourne CBD.

The Property is well located with respect to existing amenity, including schools, railway station, retail and public open space.

The Property has an approved precinct structure plan in place and a planning permit for part of the Property, subject to conditions, has been issued. Sales and construction are forecast to commence in April and May 2016 respectively and it is anticipated that the Syndicate will develop, sell and settle approximately 900 lots over the next seven years.

THE OFFER
The Syndicate is structured as a unit trust and registered managed investment scheme, managed by Peet Funds Management Limited as the Responsible Entity.

The Offer is for 25 million $1.00 Units, payable $0.70 per unit on Application with the balance $0.30 per unit payable in June 2017. The Offer will raise $25.0 million in equity which will be put towards the acquisition of the land. The remainder of the land payments will be funded through a debt facility.

Peet intends on acquiring up to 20% of the Units in the Syndicate unless the Offer is oversubscribed.

Settlement of the land will be in July 2016 with an initial land payment of $18.63 million and the final land payment of $12.42 million will be payable in June 2017.

MANAGEMENT

The Peet Group is one of Australia’s largest residential land syndicators. It currently manages 24 retail and wholesale syndicates on behalf of its many investors.

Peet is committed to environmental excellence and sustainability and has been awarded for setting benchmarks within these fields. The industry recognition and awards Peet has received in recent years are testament to the quality of the land estates and communities it creates.

RETURNS
It is intended that as profits emerge from the settlement of lots, the Syndicate will pay fully franked distributions to Unitholders. Capital returns will also be paid on a progressive basis. The payment of distributions and capital returns will be subject to available funds, taxation legislation and the Corporations Act.

The Responsible Entity is forecasting an Internal Rate of Return (IRR) of 15.5% per annum before tax but after all fees. The first capital return is expected in January 2018 and the first distribution is expected to be paid in January 2019. Please refer to the profit forecast assumptions and profit forecasts in section 7.

RISKS
While the Peet Group has managed many similar projects, there are risks associated with any business enterprise and this Property which may adversely impact on the Syndicate. Please refer to the risks highlighted in section 9.

The Product Disclosure Statement (PDS) contains important information about the Offer and it should be read in its entirety. The forecast financial information is presented in section 7 along with the sensitivity analysis and the risks in section 9. We recommend that you consult your financial adviser before making an investment decision.

Yours faithfully
Tony Lennon
Chairman
Peet Limited

INVESTMENT SUMMARY
 
Offer This is an Offer of 25 million $1.00 Units, payable in instalments, in the Peet Werribee Land Syndicate.
First Instalment The First Instalment of $0.70 per Unit is payable on application.
Final Instalment The Final Instalment of $0.30 per Unit is due on 15 June 2017.
Minimum Investment  All applications must be for a minimum of 5,000 Units and thereafter in increments of 1,000 Units.
Asset The Responsible Entity, on behalf of the Syndicate, will purchase the Property located at 383 Black Forest Road, Werribee, Victoria.
Investor IRR The Responsible Entity is forecasting an Investor IRR of 15.5% per annum before tax and after payment of all fees and expenses. Investors should refer to the profit forecast assumptions in section 7 and the risks in section 9 of the PDS.
Investment Risks There are risks associated with investment in the Syndicate – refer to section 9 of the PDS.
Taxation Implications General information about the taxation implications of investing in the Syndicate is set out in section 12.1.12 of the PDS.
Responsible Entity Peet Funds Management Limited is the Responsible Entity. It is a wholly owned subsidiary of Peet Limited, a public company listed on the Australian Securities Exchange.

Peet is an experienced fund manager and is currently managing 24 retail and wholesale syndicates with an on-completion value of more than $7.1 billion (if sold at today’s prices). Additional information on Peet and the Responsible Entity is detailed in sections 2 and 10 of the PDS.
Development Manager Peet Development Management Pty Ltd is a wholly owned subsidiary of Peet and is the Development Manager for the Project.

Peet is Australia’s largest ASX listed specialist residential land developer and is developing estates throughout Australia with potential for approximately 48,000 lots with an estimated on-completion value of approximately $12 billion (if sold at today's prices).
Syndicate Strategy The Property will be developed into a residential estate, with resulting lots intended to be sold for a profit.
Distribution Policy It is intended that distributions will be paid regularly to Unitholders once lots have commenced settling, subject to:
 
  • the Syndicate having made taxable profits;
  • franking credits being available to enable distributions to be fully franked; and
  • ongoing working capital requirements of the Syndicate.

    Distributions are not guaranteed and Unitholders will not be able to reinvest the distributions for additional Units.
  • Capital Return Policy The Responsible Entity proposes to return capital to Unitholders regularly once settlement of the lots commence, subject to:
     
  • ongoing working capital requirements of the Syndicate;
  • requirements of tax legislation; and
  • financier’s consent.
  • Redemptions No redemption or liquidity facility is offered by the Responsible Entity.
    Term of the Syndicate The life of the Syndicate is estimated to be approximately seven years from the Issue of the Units to final lot settlement. Following the settlement of all subdivided lots within the Property, the Responsible Entity will seek to wind-up the Syndicate in accordance with the Syndicate’s Constitution and the Corporations Act with any remaining profits and capital returned to Unitholders.
    Sales Manager Peet Estates (VIC) Pty Ltd is a wholly owned subsidiary of Peet and is the Sales Manager for the Project.
    Tax Status The Syndicate is a managed investment scheme that is a trading trust. Accordingly, the Syndicate will pay tax at the corporate rate (currently 30%) on taxable profits derived. The Responsible Entity will not distribute any profits prior to the Syndicate’s first payment of tax following its first taxable profit. All distributions, with the exception of the final distribution and returns of capital, will be fully franked.
    Borrowing Strategy The Syndicate will utilise a debt facility to partly fund the acquisition of the Property and to fund development of Stage 1, with the intention to fund future stages through a combination of working capital and debt. The debt facility will be repaid progressively during the life of the Project from proceeds received from the sale of the residential lots.
    Liquidity It is not intended that Units be listed on a securities exchange, therefore Units should be considered illiquid. Investors do not have any withdrawal rights as the Syndicate is not a liquid managed investment scheme. Investors may, subject to the laws of Australia and the Constitution, sell or transfer their Units.
    Cooling Off Period There is no traditional cooling off period for this investment as the Syndicate is not a liquid managed investment scheme. However, an applicant is able to withdraw their application up until the Equity Raising Condition is satisfied.
    Tax Status The Syndicate is a managed investment scheme that is intended to operate as a trading trust. Accordingly, the Syndicate will pay tax at the corporate rate (currently 30%) on taxable profits derived. The Responsible Entity will not pay distributions prior to the Syndicate’s first payment of tax following its first taxable profit. All distributions, with the exception of the final distribution and returns of capital, will be fully franked.
    Borrowing Strategy It is intended to partially debt fund the acquisition of the Property and to fully debt fund the development of Stage 1. Development of future stages will be funded through a combination of working capital and debt. The debt facility will be repaid progressively during the life of the Project from proceeds received from the sale of the residential lots.
    Debt Facility The Responsible Entity has received an indicative terms sheet from an Australian bank for a three year multi-option facility. It is intended to finalise the facility agreement prior to the Closing Date. The key terms of the debt facility are detailed in section 12.1.11 of the PDS.
    Debt Facility Condition The Offer is conditional on the Responsible Entity obtaining a debt facility on substantially similar, or better, terms to those set out in section 12.1.11 of the PDS prior to the Closing Date. If the Debt Facility Condition is not satisfied, the Responsible Entity will return the subscription monies to subscribers as soon as practicable after the Closing Date. Interest will be payable on the subscription monies refunded – please refer to section 12.1.4 of the PDS.
    Valuation Policy The Responsible Entity will have the Property independently valued at least annually. Please refer to section 1.4 and 12.1.7 of the PDS for further details.
    Voting Rights At a meeting of Unitholders, each Unitholder may cast one vote on a show of hands and one vote for each Unit held on a poll.
    Equity Raising Condition The purchase of the Property is conditional upon the Responsible Entity receiving applications for 25 million Units through the Offer. Peet intends to subscribe for 5 million Units or 20% of the Offer. Where there are subscriptions for more than 25 million Units, Peet’s subscription will be scaled back.

    If the Equity Raising Condition is not satisfied, the Responsible Entity will return the subscription monies to subscribers as soon as practicable after the Closing Date. Interest will be payable on the subscription monies refunded – please refer to section 12.1.4 of the PDS.
    Complaints The Responsible Entity has a complaints resolution procedure - please refer to section 10.5 of the PDS.

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

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