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Peet Yanchep Land Syndicate

No Current Peet Projects Available
Peet Yanchep Land Syndicate
Rebate 2.0%
Closing Date CLOSED
Minimum Investment $5,000 (thereafter increments of 1,000 units)
Investment Term Approximately 11 years
Research Lonsec  Recommended (Upper End)














THE PROJECT

Peet Yanchep Land Syndicate has been established to acquire and develop a residential project located approximately 50 kilometres north of the Perth Central Business District, within the established suburb of Yanchep. It is anticipated that the development of the 151 hectare site will commence in July 2011, with an anticipated yield of approximately 1,480 residential lots.

   
Product Disclosure Statement
Investor Presentation
Consulting Economist’s Report
Point Cook Media Coverage
Point Cook Qtrly Report Jun 2010
 

KEY FEATURES

Forecast IRR of 16% p.a. (pre tax and after all expenses)
Independent Research - Lonsec ("Upper Recommended")
Prime Location - A 151 hectare property zoned urban, located in the coastal suburb of Yanchep.
Lifestyle Development - The developed lots will appeal to a wide range of purchasers including first homebuyers, upgraders and golf enthusiasts, with all residents to benefit from the Property's 4.3 kilometres of golf course frontage.
Population Growth - Yanchep is located within the City of Wanneroo, which in 2008-2009 ranked as the third fastest growing metropolitan municipality in Western Australia (7.1%), whilst attracting the most number of new residents (9,500).
Experienced Manager - Peet Limited has 115 years of experience, and has a wealth of experience in Perth's northern corridor.
Offer Underwritten by Peet Limited
Minimum Investment - 5,000 units at $1.00 per unit, payable $0.75 on application and $0.25 on 15 September 2011.

THE LOCATION

Yanchep is an established market for residential lots with Jindowie (Australand) and Capricorn Village the major developments currently being marketed. Yanchep is an extension of the Alkimos-Eglinton release area which includes major developers such as Peet, LWP Property Group, LandCorp, Stockland and Delfin Lend Lease. Yanchep-Two Rocks is expected to house 155,000 residents by 2060. In addition, it is expected to provide employment for up to 55,000 people and establish a wide range of facilities including commercial, community, retail and tertiary education.

HOW TO INVEST

Investors are invited to apply for Units by completing and returning the Application Form along with their application monies as outlined in the Product Disclosure Statement. Applications for Units can only be made by completing the Application Form contained in the Product Disclosure Statement which is available above.

RISK FACTORS

Prospective investors should read the Product Disclosure Statement carefully and in its entirety and have regard to the risk factors set out in section 9 of the PDS before making an investment in the Syndicate. It is recommended that you consult a suitably qualified professional advisor to determine whether this investment is suitable for you.
INVESTMENT SUMMARY
 

Offer This is an Offer of 55 million $1.00 Units in Peet Yanchep Land Syndicate, payable as $0.75 per Unit on application and $0.25 per Unit on 15 September 2011.
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, known as Lot 609 Yanchep Beach Road, Yanchep.
Forecast IRR The Responsible Entity is forecasting an Investor IRR of 16.0% before tax and after payment of all fees and expenses.
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 12.1.10 of the PDS.
Responsible Entity Peet Limited is the Responsible Entity. It is a public company listed on the Australian Securities Exchange having a market capitalisation of approximately $600 million. Peet is an experienced fund manager and is currently managing 23 syndicates with an on-completion value of more than $3.5 billion (if sold at today’s prices). Additional information on the Responsible Entity and its Directors is detailed in section 10 of the PDS.
Development Manager Peet Development Management Pty Ltd is a wholly owned subsidiary of Peet Limited and is the Development Manager (Development Manager) for the Project. Peet is Australia’s largest ASX-listed specialist residential land developer, and is currently developing 70 projects throughout Australia with potential for approximately 34,200 lots with an estimated on completion value of $7.3 billion (if sold at today’s prices).
Syndicate Strategy The Property will be developed into a residential estate, with resulting lots to be sold for a profit.
Distribution Policy It is intended that distributions will be paid once the Syndicate has declared its maiden taxable profit and that all distributions will be fully franked, with the exception of the final distribution which will be franked to the extent of available franking credits.
Capital Return Policy The Responsible Entity will return capital to Unitholders regularly once settlements commence. The proceeds from the settlement of each lot contain a portion of Unitholders’ original capital enabling regular returns of capital to be made.

Distributions and capital returns will vary from period to period depending on the lot settlements achieved, annual profits generated, available franking credits and working capital requirements.
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 eleven years. 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.
Debt Facility Condition The Offer is conditional on the Responsible Entity obtaining a debt facility on substantially similar terms to those set out in section 12.1.9 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.
Underwritten The Offer is fully underwritten by Peet Limited, the terms of which are summarised in section 11.3 of the PDS.
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 cooling off period for this investment as the Syndicate is not a liquid managed investment scheme.
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 for a two-year debt facility of $35 million which will be used to fund the balance of the acquisition costs and to fund development of the Property, as well as a performance guarantee facility of $2 million. The maximum permitted loan-to-value ratio in the Indicative Terms Sheet is 50%. It is intended to finalise the loan documentation and have the loan facility in place prior to the Closing Date.
Valuation Policy Under the terms of the proposed debt facility, the Responsible Entity will be required to have the Property independently valued annually for mortgage security purposes in accordance with industry standards.
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.
Complaints The Responsible Entity has a complaints resolution procedure – please refer to section 10.6 of the PDS.
The Project The Project is the development, marketing and sale of residential lots that will be undertaken by the Syndicate.
The Property The Property is known as Lot 609 Yanchep Beach Road, Yanchep, encompassing approximately 151 hectares of land.
Zoning Zoned Urban under the Metropolitan Region Scheme and Urban Development under the provisions of the City of Wanneroo District Planning Scheme No. 2.
Value The value of the Property, assessed by CB Richard Ellis as at 5 September 2010 was $62 million (exclusive of GST). Please refer to the Independent Valuer’s Report in section 13 of the PDS.
Purchase of the Property The Syndicate has entered into an unconditional Contract of Sale for the purchase of the Property at a price of $62 million, exclusive of GST, with settlement due 10 January 2011. The Vendor has an option to bring the settlement of the Property forward to 17 December 2010.
Location 50 kilometres north of Perth’s Central Business District, and 25 kilometres north of the Joondalup Central Business District.
Lifestyle unique feature of the Property is its 4.3 kilometres of direct golf course frontage, and it is located only 3.5 kilometres from the Yanchep Lagoon swimming beach.
Access Enjoys easy access on to Marmion Avenue and will benefit from the future extensions of the Mitchell Freeway and northern metropolitan rail line, all of which will provide convenient access to the Perth CBD and northern metropolitan amenities.
Nearby Amenity Yanchep is an established coastal community of approximately 2,500 people which provides retail, education, recreation and community facilities.
Lot Yield 1,480 residential lots and a 6,200 square metre neighbourhood centre site.
Established Market Yanchep is an established market for residential lots with Jindowie (Australand) and Capricorn Village the major developments currently being marketed. Yanchep is an extension of the Alkimos – Eglinton release area which includes major developers such as Peet, LWP Property Group, LandCorp, Stockland and Delfin Lend Lease.
Planned Amenity Future residents will benefit from close proximity to the significant amenity proposed in the adjoining Yanchep City Centre, which will include regional grade commercial and retail amenities, civic and community facilities, a future train station and also a tertiary education facility and health campus.
Identified Growth Area Yanchep – Two Rocks is an identified growth area within the City of Wanneroo, which in 2008 - 2009 had the third fastest growth rate and the largest growth in population of any metropolitan municipality in Western Australia.

FREQUENTLY ASKED QUESTIONS

Am I investing in a company or a trust?
  Peet Yanchep Land Syndicate is an unlisted unit trust which has been registered with ASIC as a managed investment scheme. Investors will receive Units in the Syndicate and will be entitled to capital repayments throughout the life of the investment, and distributions once the Syndicate has generated taxable profits.

How often will distributions be paid?
It is intended that regular distributions will be paid to Unitholders once the Syndicate has made a taxable profit.

What is the tax status of distributions?
  The Syndicate will pay fully franked distributions to Unitholders, with the exception of the final distribution which will be franked to the extent of franking credits available.

What is the role of the Responsible Entity?
  The Responsible Entity is responsible for the operation and management of the Syndicate and must perform its role in accordance with its duties under the Corporations Act, the Constitution and the Compliance Plan.  In exercising its powers and duties, the Responsible Entity must act honestly, with care and diligence and in the best interests of Unitholders.  Where there is a conflict between its own interests and that of Unitholders, it must prefer the interests of Unitholders over its own.  The Responsible Entity has the power to appoint third parties to do anything that it is authorised to do in connection with the Syndicate.  However, the Responsible Entity remains liable for the acts of third parties, even where the third party acts fraudulently or outside the scope of its authority or engagement.  The Responsible Entity has delegated a number of aspects of the management of the Syndicate to related entities.  These arrangements are discussed in section 11 of the PDS.

Is there any recourse to investors? 
The Constitution provides that the liability of Unitholders is limited to their investment in the Syndicate, including any unpaid portion of their Units.

Will I receive regular updates on the progress of the Syndicate? 
Yes.  A report will be sent to all Unitholders each quarter.

What are the significant fees?

The following fees will be paid to Peet in respect to its services in the establishment of the Syndicate:

Underwriting Fee of 4.0% of the Equity Raised (payable October 2011); and
Capital Raising Facilitation Fee of 1.0% of the Equity Raised (payable December 2010).

The Development Manager will charge a GST exclusive Development Management Fee of 7.0% on the GST inclusive gross sales price of each lot sold within the Project.

The Sales Manager will charge a GST exclusive Sales Management Fee of 2.0% on the GST inclusive gross sales price of each lot sold within the Project.

The Development Manager is entitled to a performance fee, calculated as:
20% of all pre-tax profits which are in excess of 12% per annum of the equity raised by the Syndicate; plus
An additional 20% of all pre-tax profits which are in excess of 20% per annum of the equity raised by the Syndicate, averaged over the life of the Project on a simple interest basis.
These fees and other associated costs are further explained in section 6 of the PDS.

How often will the Property be valued? The Property will be valued annually, by a certified practising valuer who has experience in valuing similar properties.

Do I share in development profits? 
Yes.  The Responsible Entity undertakes the development of the Property on behalf of the Unitholders and any development profit is made on behalf of the Unitholders.

Will the estate have a builders’ display village?
  The development of the Subdivision Concept Plan for the Property has factored in the ability to incorporate a builders’ display village along the Yanchep Beach Road frontage.  The Development Manager believes that a display village will be attractive to the major project builders and will commence negotiations in early 2011.  Other display villages may also be planned for future stages.

Can the Syndicate hedge against interest rate increases?
  Yes.  The Responsible Entity will consider the opportunity to hedge against interest rate increases at the time of negotiating bank funding.






CHAIRMAN’S LETTER


Peet has a long and successful track record in providing and managing investments in land syndication and development.

I am pleased to offer you the opportunity to invest in our new project in the coastal suburb of Yanchep, Perth, Western Australia.

Peet Yanchep Land Syndicate (‘Syndicate’) is purchasing 151 hectares (‘Property’) in this fast growing coastal suburb. It is proposed to develop the Property into approximately 1,480 residential lots.


THE PROPERTY

The Property is located some 50 kilometres north of Perth’s Central Business District within the Yanchep - Two Rocks District Structure Plan area, which is expected to house 155,000 residents by 2060. Yanchep – Two Rocks is expected to provide employment for up to 55,000 people and establish a wide range of facilities including commercial, community, retail and tertiary education.

Yanchep is an established residential growth area within the City of Wanneroo, one of Australia’s fastest growing municipalities. The Property is zoned for residential development and planning of the residential estate is well underway.

The Property has 4.3 kilometres of frontage to the picturesque Sun City Country Club golf course and is only 3.5 kilometres from the Indian Ocean. Development of the estate is forecast to commence in July 2011.


PERTH’S NORTHERN CORRIDOR

Perth’s metropolitan northern corridor is one of the most sought after development areas in Perth. This region is one of the dominant residential sectors in Perth, and in the March 2010 quarter it sold more than double the lots of any other growth corridor. Peet has significant experience in this corridor including estates in Kinross and Carramar, as well as the 1,500 lot Burns Beach Estate and 2,750 lot Shorehaven at Alkimos which are currently being developed. Peet has also completed the Ocean Lagoon residential estate in Yanchep.


THE OFFER

The Syndicate will be structured as a registered managed investment scheme, managed by the Responsible Entity. It is intended that the Syndicate will operate as a trading trust for income tax purposes, and pay fully franked distributions.

The Offer is for 55 million Units at an issue price of $1.00 per Unit, payable as $0.75 per Unit on application and $0.25 per Unit on 15 September 2011. The Offer of Units will raise equity toward the cost of acquiring the Property and the cost of the Issue.

MANAGEMENT
Peet Development Management Pty Ltd, a wholly owned subsidiary of Peet, will be the development and marketing manager of the Project. Sales management of the Project will be undertaken by another wholly owned subsidiary of Peet, Peet Estates (WA) Pty Ltd.

Peet is one of Australia’s largest residential land syndicators. It currently manages 23 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 lot sales, fully franked distributions will be paid to Unitholders. Distributions and capital will be returned progressively as available funds, taxation legislation and the Corporations Act permit.

The Responsible Entity is forecasting an average compound return to investors of 16.0% per annum before tax. The first capital return is expected in October 2012 and the first distribution is expected to be paid in January 2015. Please refer to the Profit Forecast Assumptions and Profit Forecasts in section 7 of the PDS.


RISKS

Whilst Peet has managed many similar projects, there are risks associated with land development which may adversely impact on the Syndicate. Please refer to the risks highlighted in section 9 of the PDS.

The constitution of the Syndicate provides that the liability of Unitholders is limited to their investment in the Syndicate, including any unpaid portion of their Units.

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 of the PDS along with the sensitivity analysis and the risks in section 9 of the PDS. I recommend that you consult your financial advisor before making an investment decision.

The Syndicate provides an excellent opportunity to invest in the development, marketing and sale of a metropolitan residential land estate in Perth’s highly active northern coastal corridor. The Syndicate offers the prospect of strong profi t performance and distributions under proven management.

I commend this Offer to you and invite you to become a Unitholder of Peet Yanchep Land Syndicate.


Yours faithfully
Tony Lennon
Chairman
Peet Limited



Disclaimer
Units in Peet Yanchep Land Syndicate are issued by Peet Limited (ACN 008 665 834, AFSL 225 772).

Applications for units can only be made on an application form included within the Product Disclosure Statement (PDS) dated 20 August 2009. This information has been prepared without taking into account your objectives, financial situation or needs. Therefore, in deciding whether to acquire units in the Syndicate you should consider the PDS and consult a suitably qualified professional advisor to determine whether the project fits your objectives, financial situation and needs.

 


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