Centuria Healthcare Property Fund – Frequently asked questions

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. 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.

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.

The Fund is an open-ended fund that will have a limited quarterly withdrawal facility available to investors. The Withdrawal Price applicable is the Unit Price on the last Business Day of the quarter less any applicable Sell Spread and is generally 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 or realisation of the Fund’s A-REITs.

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

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 55%. If the value of the Fund’s assets fall and look-through Gearing increases above this level, the Manager of the Fund will implement a strategy to restore the level of look-through Gearing to 55% or below. The Manager has a target look-through Gearing level of between 35%-49%.

The Fund’s valuation policy is for the direct properties of the Fund to be independently valued at least once every 24 months. However independent valuations are required within two months if the Manager of the Fund believes a Property is likely to be subject to a material increase or decrease in value (i.e. greater than 5%). Where an independent valuation has not been done, a Director’s valuation is carried out every 6 months.

Management fee: 0.80% per annum of the Fund’s Gross Asset Value. When the Fund invests in an underlying fund managed by the Manager of the Fund or a related entity that is already charging management fees, the Manager of the Fund does not take another fee that exceeds a total look-through fee of 0.80% per annum.
Expenses of the Fund (excluding Abnormal Expenses): capped at 0.35% p.a. of the Fund’s Gross Asset Value.
Performance fee: 20% of the outperformance of the Fund above a total return benchmark of 8.00% per annum (pre-tax, net of fees)
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 excludes any agent’s fee paid by the Fund.
Sale fee:up to 0.50% of the sale price of any Property in which the Fund has a direct or Indirect Interest.

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.

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.

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.

Centuria Investor Services Team
1800 182 257

For international investors
Phone: +61 2 9290 9600

Email: Property.Enquiry@CenturiaInvestor.com.au

Fax:     +61 2 9279 0664

Mail:    GPO Box 3993, Sydney NSW 2001

Investors:
https://centuriainvestor.com.au

If you have not yet registered yourself for access to the Centuria Investor website, please contact our Investor Services Team via Property.Enquiry@CenturiaInvestor.com.au OR phone us on 1800 182 257.

Financial Advisers:
https://www.adviserserve.com.au

Please contact our Investor Services Team via Adviser.Enquiry@CenturiaInvestor.com.au OR phone us on 1800 182 257.

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. If you are an investor, please contact us via Property.Enquiry@CenturiaInvestor.com.au OR phone our team on 1800 182 257. If you are an adviser, please contact our Investor Services Team via Adviser.Enquiry@CenturiaInvestor.com.au OR phone us on 1800 182 257