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Property fundamentals
Active management is an important part of the Opus
Investment Philosophy. Opus continues to achieve targeted
distributions across its portfolio. Some of the factors
contributing to this track record include:
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selection of quality
commercial buildings |
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rental income
supported by strong lease covenants |
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distributions to
investors are based on the rental income earned by
the assets (no form of capital support). |
The Australian commercial
property market continues to perform strongly, and investors
in their funds continue to benefit from regular monthly income
with capital growth potential.
The opportunity
The opportunity exists to invest in a portfolio of
complimentary assets benefiting from well considered
diversification, achieved through various geographic
locations, property sector types and a range of tenants,
including government, national and local businesses with a
diverse lease expiry profile.
Investment Criteria
The foundation asset of the Fund is Zurich House
located at the Gold Coast. Only assets that satisfy the Opus
Investment Criteria including the potential to sustain the
Minimum Targeted Distribution of 8.75 cents per Unit and
also have potential for capital growth will be included.
Established Property Selection
Criteria
Opus Capital has a history of identifying and evaluating
property investment opportunities, with a portfolio of
development assets, together with passive holdings of
office, industrial and retail property, in excess of $450
million.
The Opus Income & Capital Fund No. 21 - Offer No. 2
structure incorporates the same standards of investment
selection as other Opus Property Trusts. The Opus Investment
Committee will regulate asset selection activities to ensure
they are compliant with the Opus Investment Philosophy and
Fund Strategy.
Rigorous Investment Processes
Stringent asset management processes underpin the
performance of assets. Systems designed by Opus Capital
provide quality management information necessary to monitor
the performance of assets against benchmarks.
The fee structure of the Fund fosters active management and
aligns our management objectives with your best interests.
This alignment is essential for a fund focused on capital
preservation and growth as well as income generation.
Investment Strategy
Our geographic bias will be toward capital and regional
cities along the eastern seaboard of Australia. The focus
will be on a clear understanding of local economy drivers
and the potential for a location to leverage value from
capital infrastructure investment by government or the
private sector.
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Distribution to Investors: |
The minimum Targeted Distribution is
8.75 cents per Unit p.a. *
Distributions are paid monthly. |
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Investment Strategy: |
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Build a diversified portfolio with
quality properties meeting the Opus Investment
Criteria, providing regular tax-advantaged income
and maximising the capital growth potential of the
portfolio. |
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Fund Structure: |
This unlisted, open-ended Fund is an
ASIC-registered managed investment scheme. The
Custodian is the Public Trustee of Queensland (the
Custodian). The Responsible Entity is Opus Capital
Limited (the Manager or Opus Capital). |
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Issue Price: |
The
Issue Price will be calculated and published on the
Opus Capital website, www.opusaustralia.com, on a
daily basis. |
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Alignment of Interests: |
The
Fund’s Constitution is written to ensure the
alignment of the interests of Investors and the
objectives of the Manager, with the fees payable to
the Manager being predominantly based on
performance. |
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Investment Period: |
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The Manager will present to
Investors the alternatives for the future of the
Fund within four years from the issue date of this
Offer. The alternatives may include continuing the
Fund in its present form, applying to list on an
exchange, or winding up the Fund. |
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Withdrawal Mechanism: |
Investors will have the opportunity to withdraw from
the Fund by means of periodic withdrawal offers made
by the Manager in accordance with the Constitution
and section 601KB of the Corporations Act. Further
details are provided in the section headed
Additional Information. |
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Reinvestment Option: |
Investors may opt to reinvest distributions by
advising the Manager. The Manager reserves the right
to suspend this option at its absolute discretion. |
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Investment Criteria: |
The Fund will only acquire assets
which meet the Opus Investment Criteria and
demonstrate the ability to benefit the Fund and
contribute to meeting the Targeted Distribution.
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* Warning: This is
a Targeted Distribution only and is not guaranteed
by the Manager. There is a risk in placing undue
reliance on the Targeted Distribution rate.
Prospective investors should review the Targeted
Distribution in conjunction with the Risk Factors
set out in the PDS and the assumptions on which the
Targeted Distribution is based. The Key Forecast
Assumptions are set out in the Financial Information
section of the PDS.
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Tax-Advantaged
Income: |
Capital allowances for structure,
plant and equipment and the writing off over time of
capital raising and borrowing costs mean a
significant portion of the distributions paid to
Investors is tax-advantaged. * |
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Diversified
Portfolio: |
A Fund focus is the risk mitigation
benefits provided by a property portfolio
diversified by geographic location, property type,
tenant industry and lease expiry profile.
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Eligible Investors: |
The investment vehicle is a unit
trust, allowing for participation by all types of
investors, including self managed superannuation
funds. |
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Minimum Application
Amount: |
$10,000 with further increments of
$1,000 or above. The Manager reserves the right to
adjust these amounts from time to time. |
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Fund Equity: |
Under this Offer, the Manager will
seek to raise an additional $100 million (Maximum
Subscription for this PDS) and accept $5 million in
over subscriptions for the Fund. Further capital
raising offers may be made by the Manager in the
future. |
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Borrowings: |
Fund assets will be geared. Targeted
gearing ratio is 40% – 60% LVR across the portfolio.
Refer to Additional Information for further details
of the Borrowings. |
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Unit Pricing: |
Investors will share in any increase
in the Net Value of the assets of the Fund,
following revaluation of the Portfolio Properties,
through re-pricing of the Units. |
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Taxation: |
Investors should seek their own
advice on the implications of this structure within
their overall particular taxation position.
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Subscription Monies: |
Prior to monthly allotment of Units,
all Investor Subscriptions will receive interest at
cash management rates less bank fees. |
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* These deductions will reduce the
cost base of Properties upon sale. Refer to Taxation
Matters. |
The Opportunity
You are offered the opportunity to become a part owner
of a growing commercial property portfolio, actively managed
in accordance with the Opus Investment Philosophy and
designed to provide Investors with strong, regular,
tax-advantaged distributions and the right to share in the
capital growth prospects of the Portfolio.
The Portfolio currently consists of Zurich House on the Gold
Coast, Cairns Corporate Tower, Cairns, the Mulgrave
Commercial Building in Melbourne and 437 St Kilda Road,
Melbourne. With the proceeds of this Offer, the Fund will
acquire additional properties that meet the Opus Investment
Criteria and demonstrate an ability to contribute to the
Fund’s objectives.
The Offer
Investors are invited to subscribe for Units in the Opus
Income & Capital Fund No. 21, thereby joining the Existing
Investors, who currently hold Units in the Fund.
Minimum Investment
You may apply for a minimum of $10,000 worth of Units or
greater, in increments of $1,000 or more.
Issue Price
Under this Offer, Units will be issued at a price
calculated by the Manager and the unit price will be
published on the Opus Capital website
www.opusaustralia.com.
Investment Return
The objective of the Fund is to maximise total return to
Investors through monthly distributions, taxation benefits
and capital growth, if any.
The Investment Manager
Opus Capital Limited is a specialist funds management
company, licensed by the Australian Securities and
Investments Commission (ASIC) to act as the responsible
entity for a range of managed investment schemes.
Opus Capital are recognised for their commitment to the Opus
Investment Philosophy and their values-based business
culture - creating wealth through an exhaustive asset
selection process, professional management and defined
Capital Profit and Exit Strategies.
Opus Capital's vision is to be recognised as a leading
investment manager with a reputation for sound, profitable
decisions based on an uncompromising investment philosophy.
Business Culture
An investor-centric focus is inherent in the Opus
Capital business culture and gains expression through its
rigorous asset selection criteria, active asset management,
high standards of corporate governance, and
performance-based fee structures.
The Credentials of Opus Capital
Opus Capital has a proven history of identifying and
acquiring premium property investments featuring secure
income streams which deliver regular tax advantaged returns.
The Opus Capital name is synonymous with property
investments that deliver higher investment returns generated
by capital growth.
Therefore, part of the property feasibility study for each
acquisition includes detailed consideration of the exit
strategy and hence, how potential for capital profit may be
realised at a future date.
Through the sale of a series of assets from among its 14
investment funds, Opus Capital has delivered to its
investors capital profits ranging from 30% to 71%.* These
outcomes demonstrate Opus Capital’s relentless focus on
total return to investors.
Building the Fund
Opus Capital evaluates numerous Australian property
investment opportunities each year. Many of these
opportunities are quality commercial properties falling into
the range of $10 million to $50 million. Typically these
properties are multi-tenanted, require active management and
therefore generally have a greater potential to add value
and hence, capital growth. These properties fall outside the
reach of most private investors.
* Warning: Past performance is not a guaranteed indicator of
future performance. |
