Primewest Property Income Fund
Primewest have added a new dimension to our investment offering with our first open-ended, unlisted fund – Primewest Property Income Fund (PPIF), open to wholesale investors.
The fund has been established to provide investors with a more flexible investment product where Investors can, subject to liquidity, cash in their investment on a monthly basis. It will also provide unitholders with stable monthly income with the potential for capital growth. PPIF aims to achieve this by investing in a diversified and growing portfolio of commercial property assets located in Australia.
Forecast Distribution 5.5%*pa
Target Gearing 35-50%
Target WALE 5-year
Reinvestment Plan Yes
Minimum Investment $50,000
The fund will maintain a small exposure to cash, listed real estate trusts and other cash like products to provide unitholders with the opportunity to redeem units through a limited liquidity facility each month, whereby a nominated percentage of the fund’s net asset value will be made available to fund redemptions.
The Fund aims to provide Investors with monthly income
The Fund aims to achieve long term capital growth
The Fund will include a diverse national portfolio of quality office, industrial & logistics, healthcare, social infrastructure and retail assets
The Fund allows for withdrawals at designated intervals, subject to Fund liquidity
Primewest is pleased to confirm three quality Childcare seed assets for PPIF. The seed assets are now under unconditional contracts following a comprehensive due diligence process. We are extremely satisfied with the quality of the seed Childcare Portfolio and expect to settle the properties in mid January, with distributions to commence in February 2021.
These assets are:
- In QLD, SA and WA
- Have 15 – 20 year leases
- Are operated by ASX Listed or reputable privately owned operators with substantial national operations
- Are brand new builds currently under development, or recently refurbished to a very high standard
- Have between 87 and 122 childcare spaces available
*Primewest Management Ltd ABN 63 091 415 833 (Primewest Management or Trustee) is the Responsible Entity of Primewest Property Income Fund ARSN 645 597 404 (Fund). Before making an investment in relation to the Fund, it is important you read the Information Memorandum (IM) dated 26 November 2020. The IM is issued by Primewest Management and is available from www.primewest.biz/propertyincomefund or by calling (08) 9321 7133. Applications for units in the Fund can only be made on the application form accompanying the IM.
The information included on this website has been prepared without taking into account your objectives, financial situation or needs. Before making an investment decision, you should consider the IM and consult your financial adviser or other professional advisers to determine whether the Fund suits your objectives, financial situations or needs.
If you acquire units in the Fund, then Primewest Management and its related parties may receive fees from the Fund. Those fees are disclosed in the IM.
Any investment, including an investment in the Fund, is subject to risk. If a risk eventuates, then it may result in reduced distributions and/or a loss of some or all of your capital invested. The IM includes further examples of some of the key risks of an investment in the Fund.
Past performance is not indicative of future performance. Any forward-looking statements on this website are provided as a general guide only and subject to the risks and assumptions set out in the IM. Neither capital growth, distributions or tax consequences are guaranteed.
Units in the Fund are issued at a unit price determined in accordance with Primewest Management’s unit pricing policy (Policy). The Policy has been prepared in accordance with the Australian Securities and Investments Commission (ASIC) and the Australian Prudential Regulation Authority (APRA) Unit Pricing: Guide to Good Practice.
1 How do I invest in the PPIF
Please download the IM.
You can apply via https://investor.automic.com.au/#/w/PPIF (recommended) or alternatively, you can apply using the Application Form contained in the IM and post to Automic Group, Level 5, 126 Phillip Street Sydney NSW 2000.
2 How do I access the Investor Website (https://investor.automic.com.au/#/home)
Access the Investor website. You will need to register and create your login details. To login to Automic website you will need your Investment Reference and password. To obtain your Investor Number or password, please contact the Automic Investor Services Team on 1300 943 885.
3 My login is not working – who do I contact?
Please contact Automic Investor Services Team on 1300 943 885 or via email firstname.lastname@example.org
4 How do I change my address, bank account or adviser details?
You can manage any changes to your details via InvestorOnline facility (https://investor.automic.com.au/#/home).
5 What can I access in the Investor Website (Automic)
The Investor website contains all the relevant information regarding your investment, including your Unit Holding, Unit Values, Distribution Statements, Tax Statements, Annual Reports withdrawal forms and all other correspondence.
6 How are distributions paid?
Any distribution payable will be deposited monthly, directly into your nominated bank account.
7 When will I receive updates on my investment?
Each Investor receives monthly distribution statements (found online).
8 Can I sell my investment?
Primewests open-ended property Fund, offers Investors the opportunity to withdraw their investment monthly, on a limited basis, subject to the terms outlined in the Information Memorandum (IM).
9 Can I transfer my units?
You can transfer your units in PPIF Fund via an off-market transfer with another investing entity. In order to complete a transfer please read the transfer form available from our Automic Investor website for detailed instructions. Primewest cannot guarantee or facilitate the transfer of units.
10 Copies or originals?
The Application form asks you to send us certain documents. Please send us certified copies, not originals. We will keep what you send to us.
11 Certified documents
You must have someone certify the copies you send to us. The following people can certify documents.
- a Justice of the Peace
- a Notary public (for the purposes of the Statutory Declaration Regulations 1993)
- an agent of the Australian Postal Corporation who is in charge of an office supplying postal services to the public
- a permanent employee of the Australian Postal Corporation with 2 or more years of continuous service who is employed in an office supplying postal services to the public
- an officer with, or authorised representative of, a holder of an Australian financial services licence, having 2 or more continuous years of service with one or more licensees
- an officer with 2 or more continuous years of service with one or more financial institutions (for the purposes of the Statutory Declaration Regulations 1993)
- a finance company officer with 2 or more continuous years of service with one or more finance companies (for the purposes of the Statutory Declaration Regulations 1993)
- a member of the Institute of Chartered Accountants in Australia, CPA Australia or the National Institute of Accountants with 2 or more years of continuous membership
- a person who is enrolled on the roll of the Supreme Court of a State or Territory, or the High Court of Australia, as a legal practitioner (however described)
- a Judge of a court
- a magistrate
- a chief executive officer of a Commonwealth court
- a registrar or deputy registrar of a court
- a Police officer
- an Australian consular officer or an Australian diplomatic officer (within the meaning of the Consular Fees Act 1955).
12 What should the person certifying write?
“I [name] of [address] being [capacity e.g. Justice of the Peace] certify this and the following [x] pages as a true copy of the original document.” The first page should be signed, and subsequent pages initialed, by the person certifying your documents and include the date of certification and contact details.
13 What is Weighted Average Lease Expiry (WALE)
A Weighted Average Lease Expiry (WALE) represents the average time period when all leases in a property will expire and is an indication of the security of future income streams to investors. It is calculated using the rental income from each lease but weighted by the amount of income or space within the asset.
14 What is an open-ended unlisted fund?
Unlisted Funds issue you with units in a trust. They are not quoted on the Australian Stock exchange, or any exchange for that matter, and they cannot be traded on the ASX at any time.
Open-ended means that investors can continually top up their investments at any time and the property Fund can continue to issue units to Investors. The Fund can then acquire new properties to diversify the portfolio.
It does not have a set term, which means it can continue to grow over a longer duration. Units typically should not fluctuate the same as a listed Real Estate Fund.
15 What are the benefits of investing in an open-ended unlisted fund?
The benefits of investing in an open-ended unlisted fund includes:
Income paid monthly
Growth – by investing in a varied portfolio of assets, this allows us to aim at achieving long term capital growth.
Diversification – The strategy for the Fun is to build a diverse portfolio of assets across office, industrial, healthcare, social infrastructure, and retail property assets.
Liquidity – Although property is normally a long-term investment, the greatest benefit of this type of Fund is the opportunity to withdraw part of your investment at select intervals (subject to liquidity as per the IM).
16 What are the risks of investing in an open-ended unlisted fund?
Property Investment Risks can include:
Values and sale prices – the ongoing value of a property is influenced by many factors including supply, demand, rentals, lease terms, government regulation and legislation, property markets, and of course economic conditions.
Revenue – a fund’s income will be largely dependent upon tenants paying rent in accordance with lease terms. We have a leasing team whose job it is to ensure properties always remain tenanted.
Acquisitions – The fund manager will seek to progressively acquire a diversified portfolio of commercial property assets for the Fund. Our highly experienced Asset Management Team will ensure that all acquisitions will be made thoughtfully.
Capital expenditure – Capital Expenditure will be required to maintain an asset within the portfolio. Primewest Funds typically have an allowance for capital expenditure.
Environmental – Property income or valuations of the Properties within the fund could be adversely affected by the discovery of an environmental contamination. Your asset managers role is to ensure the property is always correctly looked after, environmental inspections are carried out in our due diligence procedures prior to purchase.
Development – Development of properties can be very profitable but not without risk. Your manager is there to ensure all risks are minimized.
Fund Investment Risks can include:
Liquidity – Investors can request a withdrawal of their investment in the Fund. While the manager intends to offer the Limited Monthly Withdrawal Facility – it is under no obligation to do so. There may be circumstances where the Fund manager is not able to offer the Limited Monthly Withdrawal Facility or offer a Periodic Liquidity Event.
Debt – The Fund will have debt. Debt will magnify the effect of any movements in the value of the Property.
Interest rates – Interest rates on debt and deposit facilities may rise and fall. Changes in interest rates can affect distributions positively