Key Features
Offer Part A
The offer of Cash Units in the Fund at an issue price of $1.00 per Unit.
Offer Part B
The offer of Project Units in respect to a particular Project.
Fund
The Otan Property Fund – a registered managed investment scheme that provides Unitholders with the opportunity to invest in Projects.
Minimum Subscription
The minimum amount that you can subscribe to the Fund is $10,000 with any subsequent Subscriptions made in multiples of $1,000. A Part B PDS may specify a minimum investment in respect of a Project.
Project
A Project is either a Development Project or an Investment Project.
Cash Units
Units in the Fund that may be converted into Project Units or redeemed into cash. They have an issue price of $1.00 each.
Project Units
Units of a discrete class that relate to a specific Project. The first issue of Project Units will have an issue price of $1.00 each. Any subsequent issues of Project Units will be calculated in accordance with the Constitution and as set out in the Part B PDS. The value of Project Units may rise or fall, depending on the outcome of the Project. The terms of issue and conversion of Project Units are set out in the Part B PDS.
Costs of investing
The fees and costs of investing are set out in section 7. Fees and costs relating to a Project are set out in the relevant Part B PDS.
Responsible Entity
Otan is the Responsible Entity of the Fund. The Responsible Entity is responsible for the overall operation of the Fund. The obligations and entitlements of the Responsible Entity are set out in the Constitution. The Responsible Entity is entitled to fees and reimbursement of costs.
Manager
Pindan has been engaged under the Services Agreement to, among other things, manage and develop the Projects.
The Manager is entitled to the fees and reimbursement of costs.
Related party transactions
At the date of this Part A PDS, there are no transactions with related parties of Otan relating to the Fund that is not disclosed in this PDS. If a Project involves a transaction with a related party, this will be set out in the Part B PDS.
Cooling off period
Unitholders who make a Subscription to the Fund to acquire Cash Units have 14 days to change their minds and request return of their Subscriptions in accordance with the Corporations Act.
Returns – Cash Units
The funds from the subscription of Cash Units will be invested in fixed interest deposits and other financial products. Distributions are paid quarterly in arrears.
Returns – Project Units
Financial returns on a Project, including any capital gains, are paid by Distributions to the Project Unitholders of that Project. Distributions are paid by way of Cash Units in proportion to the Project Unitholders holding in the Project. Distributions may be paid during the life of a Project or after the Project is completed and wound-up. The sources of funds to pay Distributions are set out in the Part B PDS.
Risks
No investment is without risk. The significant foreseeable risks of investing in the Fund are set out in section 9.
Risks particular to each Project are set out in the Part B PDS.
Tax
Generally, Distributions are pre-tax and Unitholders pay tax according to their own tax positions. However, this will not be the case for Project Unitholders of a particular Project if the Project is taxed as a "public trading trust" (see section 10).
Limited liability
Unitholders have limited liability. See section 3.13 for a fuller description of the limitations on Unitholder liability.
Investment by Otan
Otan may invest in one or more Projects in its personal capacity.
Gearing
Gearing is the term used for borrowing to enhance investment returns. If there is gearing in a Project, the reasons for this, the details of the finance facility and the associated risks are set out in the Part B PDS. Any borrowings will be non-recourse to Unitholders.
Gearing ratio
If there is gearing in a Project, the gearing ratio is set out in the Part B PDS relating to that Project.
Interest cover
Interest cover is relevant to Investment Projects and, if there is gearing in an Investment Project, the interest cover is set out in the Part B PDS for that Project.
Maturity of loans
If there is gearing in a Project, the date of maturity or the forecast date of maturity of each loan is set out in the Part B PDS for that Project.
Portfolio diversification
The sources of investment returns from a Project and the sources and effects of risks to those returns are set out in the Part B PDS for that Project. A portfolio combining a Project with other Projects or investments with different sources of return and risk may have better risk–return characteristics than investment in only one Project.
Property valuation
Property valuation is carried out in accordance with the stated valuation policy. An abbreviated report from an independent property valuer is included in the Part B PDS for a Project and the full valuation report is available on request.
Complaints
Otan has established procedures for dealing with complaints and is a member of the Financial Ombudsman Service.
Statutory regulation
The Fund is a registered managed investment scheme, regulated under the Corporations Act.
Reporting
Financial reports are made available to Unitholders annually and half-yearly. More information may also be available on the Otan website.
Redemptions
Redemption of Cash Units is available, subject to conditions.
Project Units are not redeemed directly. At the end of a Project, Project Units are converted back to Cash Units. Unitholders may either redeem their Cash Units into cash or retain them to use to subscribe for Units in other Projects.
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