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| Feature |
Summary |
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Manager
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Social Investment Australia Limited
ACN 127 962 976; AFS licence 339844
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Objectives
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The dual objectives of the Fund are:
To provide Investors with a market related financial return through investment in commercial property occupied by selected CSOs. Financial return consists of quarterly distributions (which may be tax advantaged) and the potential for capital growth.
To provide selected CSOs with long term leases over suitable commercial property. This provides CSOs with security of tenure, confidence to expand or increase the depth of service delivery programs, a professional and socially minded landlord and an option to acquire the property prior to the end of the Fund term.
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| Investment process |
The Fund will acquire real estate applied to a commercial purpose in the social sector located within Australia which meet the Fund’s investment criteria, and to lease those properties to tenants approved under the Forester’s Community Asset Building appraisal process.
The Manager systematically evaluates compliance with Socially Responsible Investment (SRI) standards including social, ethical, governance, environmental and labour rights.
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| Tenancies |
Properties will be leased to selected CSOs approved under the Foresters Community Asset Building appraisal process. Leases will generally be for a three year term, with two three year option terms.
One of the key social objectives of the Fund is to assist the tenants to become financially sustainable through the Community Asset Building process. Accordingly, the Fund will grant tenants a right to acquire the property they are leasing under an option agreement and Foresters will assist tenants in developing a structured acquisition plan.
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Closing Date
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The Offer closed successfully on 31 March 2011. The Fund is not open for new investment.
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Term of Investment
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The Fund term is seven years. The Manager intends to make a recommendation to investors as to the continuation of the Fund term and exit strategies for investors in the Fund on or before 30 September 2017.
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Liquidity of investment
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An investment in the Fund should be considered a long term investment as there is no established secondary market or redemption facility for Units in the Fund. |
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Target distribution
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The Manager will target a distribution rate of 5.5% per annum (however, note this is a target, not a forecast).
Distributions will be paid quarterly, within 10 business days from the end of each quarter (ending 30 June, 30 September, 31 December and 31 March).
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Fund type
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Wholesale.
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Borrowings
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The Manager intends to arrange for the Fund to enter into Loan Facilities, with a target loan to value gearing ratio for the Fund of 35%. The maximum allowable loan to value gearing ratio is 40%. |
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