Your questions answered
An unlisted property fund is a form of direct property investment that provides investors the opportunity to gain access to commercial property assets through an investment in a fund.
Unlisted property funds are privately held and aren't listed on a secondary (public) market in the same was as REITs.
Quanta investment opportunities are restricted to wholesale/sophisticated or professional investors.
ASIC defines a Wholesale Investor as (you must meet at least ONE of the following criteria):
(a) persons who have earned a gross income of at least $250,000 in each of the last two financial years (as confirmed by an accountant - 24 month validity); or
(b) persons who have net assets of at least $2.5 million (as confirmed by an accountant - 24 month validity); or
(c) persons who invest a minimum of $500,000.
ASIC defines a Professional Investor as (you must meet at least ONE of the following criteria):
(a) financial services licensees; or
(b) trustees of a superannuation fund, approved deposit fund, pooled superannuation trust or public sector superannuation scheme within the meaning of the Superannuation Industry (Supervision) Act 1993 (Cth) and the fund, trust or scheme has net assets of at least $10 million; or
(c) a person who has or controls gross assets of at least $10 million; or
(d) listed entities and their related bodies corporate; or
(e) foreign entities that, if established or incorporated in Australia, would be covered by any of the above.
Investments at Quanta start from $50,000 (offer dependent).
Under the Corporations Act 2001, a person can be considered a wholesale investor if they pass one of the following tests:
Sophisticated Investor Test
There are three measures where you can qualify as a wholesale investor and these are that you and the entities you control:
- Make a single investment in the offer of at least $500 000 or
- have net assets of at least $2.5 million; or
- gross income for each of the last two financial years of at least $250,000 per annum, as confirmed by a qualified accountant.
- Have or control gross assets of at least $10 million or more
Professional Investor Test
To qualify as a professional investor you or entity must have:
- Have or control of gross assets of at least $10 million or more; or
- have and Australian Financial License (ASFL),
Experienced Investor Test
To qualify as a sophisticated investor through the experienced investor test the AFSL licensee is satisfied on reasonable grounds as described on Section s761GA of the Corporations Act 2001 (Cth.) the investor has previous experience in investing in the offer that allows them to assess:
- the merits of the offer
- the value of the product
- the risks involved in accepting the offer
- their own information needs
- the adequacy of the information given by the person making the offer
Passing any of the above tests will qualify you as a wholesale investor. Even though you are eligible as a wholesale investor, you need to make sure you do have a complete understanding of all details related to the financial investment product when making investments.
A unit trust is a form of collective investment constituted under a trust deed. A unit trust pools investors' money into a single fund, which is managed by a fund manager. Unit trusts offer access to a wide range of investments, and depending on the trust, it may invest in securities such as shares, bonds, gilts, and also properties, mortgage and cash equivalents. Those investing in the trust own "units" whose price is called the "net asset value" (NAV). The number of these units is not fixed and when more is invested in a unit trust (by investors opening accounts or adding to their accounts), more units are created.
- An open-ended fund is an investment fund that continues to grow by buying additional properties to provide greater investment diversity and does not have a defined termination date.
- Illiquidity - The lack of liquidity means that it may be challenging for investors to sell their units or access their investment equity with certainty.
- Invests in one or more real estate asset, providing investors with a high level of transparency and choice in which assets they invest in.
- Investors commit capital for a fixed period of time, typically ranging from 5 to 10 years.
- Provides improved liquidity and certainty around exit.
NABERS, the National Australian Built Environment Rating System, is an initiative by the government of Australia to measure and compare the environmental performance of Australian buildings and tenancies in the form of a star rating from zero to six.
There are NABERS rating tools for commercial office buildings to measure greenhouse gas emissions, energy efficiency, water efficiency, waste efficiency and indoor environment quality.
WALE, or Weighted Average Lease Expiry, is a metric used in commercial real estate to measure the average length of leases for a property or portfolio of properties. It is a crucial metric for investors and property owners to understand, as it provides insight into the stability and cash flow of their investments