Centuria Diversified Property Fund – Frequently Asked Questions

 

1. How do I apply for units in the Fund?

To apply to become an Investor you should read the Product Disclosure Statement (PDS) in its entirety. Applications can be then made via the post or through our online application website. For full details on how to apply please download or request a hardcopy PDS and follow the instructions. The minimum investment for units in the Fund is $10,000. Applications will be processed on a daily basis and unit confirmations will be sent thereafter.

 

2. When are distributions paid and can they be reinvested?

It is intended that the Fund will pay distributions to investors on a monthly basis. Distributions will usually be paid into Investor’s bank accounts by the 10th day of the following month.

Investors will have the opportunity to participate in a distribution reinvestment plan (DRP) enabling them to reinvest some or all of their distributions as additional units in the Fund.

Please refer to Section 3 of the PDS for further details on the Fund’s distribution and DRP policies.

 

3. Can I withdraw my units in the Fund?

The Fund is an open-ended fund that will generally have a monthly withdrawal facility available to investors. The withdrawal price applicable will be the Unit Price on the last Business Day of the month and will generally be paid by the 21st day of the following month. Withdrawals from the Fund may be scaled back, delayed or suspended in certain circumstances, including where the Fund has insufficient liquidity. It is expected that withdrawals requests will be satisfied from the Fund’s cash and/or realisation of the Fund’s listed A-REIT investments.

Please refer to Section 3 of the PDS for further details on the Fund’s withdrawal facility.

 

4. What is the Fund’s gearing policy?

The Fund may borrow to acquire direct Property assets. The Fund may also invest in funds that are already geared. Gearing on a look-through basis will not exceed 50%. If the value of the Fund’s assets fall and look through gearing increases above this level the Manager will implement a strategy to restore the level of gearing to 50% or below. The Manager has a target look-through gearing level of between 25% – 35%.

 

5. What is the Fund’s valuation policy?

Centuria will have the direct Properties held by the Fund valued at least once every 12 months. If the Manager believes that a Property has had a significant valuation movement an updated valuation will be obtained within two months of identification of the change in price. Indirect investments in funds in which Centuria or another member of the Centuria Group is the responsible entity will be accounted for by the Fund at their current valuation, as provided by the relevant fund manager.

 

6. What are the forecast fees and expenses for the Fund?

Management fee: 0.80% p.a. of the gross asset value of the Fund. When the Fund invests in an underlying fund managed by Centuria that is already charging management fees, Centuria will not take another fee that exceeds a total look-through fee of 0.80% p.a.
Expenses of the fund: estimated to be 0.15% p.a. of the Fund’s gross assets.

Performance fee: 20% of the outperformance above a composite benchmark reflecting the Fund’s intended portfolio composition.
Establishment and placement fee: up to 2% of the total acquisition price of any property asset in which the Fund acquires a direct or indirect interest (multiplied by the Fund’s percentage of beneficial interest in that property). This fee will not apply when the Fund invests into another unlisted property syndicate where an acquisition fee of 2% or more has already been charged unless the underlying investment fund has recovered its initial acquisition costs or the relevant Units in the Fund have been purchased at a discount to NTA.

Sale fee: up to 1% of the sale price of any Property in which the Fund has a direct or indirect interest (multiplied by the Fund’s percentage of beneficial interest in that property).

 

7. When will I receive an annual tax statement to complete my tax return?

The Fund will issue annual tax statements, providing a full breakdown of all distributions for the financial year. It is anticipated that the tax statements will be sent to investors by early September each year. Investors should wait to receive this statement before lodging their tax return. Please contact your tax advisor should you have any questions on the information contained within this statement.

 

8. What are tax deferred distributions?

Tax deferred distributions are generally available when the Fund’s distributable income is greater than its taxable income. This arises as the Fund is able to offset the distributable income against items such as depreciation on plant and equipment, capital allowances on the building structure, interest and costs during construction or refurbishment periods, and costs of raising equity.

Tax deferred distributions are generally non-taxable when received by investors and, as a result, are not included in your tax return for the year. However, the amount received reduces the cost base of your units in the fund, meaning that the amount is assessed as part of the capital gain when you eventually sell/withdraw your units.

As a result of tax deferred distributions you have greater access to your distributions when they are paid, as well as being able to take advantage of capital gains tax concessions when you hold the units for more than 12 months.

 

9. What is a Weighted Average Lease Expiry (WALE)?

The WALE is a commonly used term when looking at commercial property investments. It is the way of measuring the average time period in which all leases within a property, or portfolio, will expire. The WALE is calculated across all the tenants in a property and is weighted by either the tenant’s lettable area or the tenant’s income against the total combined area or income of the other tenants. A higher WALE indicates limited short to medium term vacancies, with a shorter WALE indicating possible multiple vacancies in the short to medium term.

 

10. Who do I speak to about my investment in the Fund?

Contact Centuria Investor Services Team
1300 113 548

For international investors
Phone: +61 2 8823 2585

Email: investor.services@centuria.com.au

Fax:     +61 2 8624 4794

Mail:    GPO Box 804, Melbourne VIC 3001

 

11. How can I obtain historical statements, such as tax statements, distributions statements and/or transaction statements?

All current and historical Tax, Distribution and or Periodic Statements are available to you on our Investor and Adviser Web Portals. Access to the portals are as follows:

Investors:
https://fundservices.centuria.com.au/ofs2.web/public/login/CPF/INVESTOR

Financial Advisors:
https://fundservices.centuria.com.au/ofs2.web/public/login/CPF/ADVISER

If you have not yet registered yourself for access to our Web Portals, please request a registration code from our Investor Services Team via investor.services@centuria.com.au OR phone our team on 1300 113 548.

 

12. Can I transfer my holding to another entity or person?

Yes, a transfer takes place when you decide to sell all or part of your investment to another person or entity. A transfer is a change of ownership of units within the same fund. Please seek financial advice.

Please note that when a transfer takes place, our registry treats this as a new holding, even if it is a simple name change with the same trustees or company directors. Therefore all banking details, tax file numbers, Australian business numbers (ABNs) and adviser details will need to be provided on the new transfer form.

If you have any questions in relation to the transfer of your units, or wish to receive a transfer form, please do not hesitate to contact our Investor Services Team via investor.services@centuria.com.au OR phone our team on 1300 113 548.