Application for Units
PORT MACQUARIE OFFER 20 Lot Land Subdivision
- Stage 1: 20 Lot Subdivision
- DA obtained for 35 Lots in Dec 2018
- 12-18 Month Project Term
- Targeted Return 20%
Example: existing Investors In the project that choose to roll their funds over into this new offer:
Michael invested $100,000 in Diamond Unit Trust (Offer 1).
Michael will get $130,000 back which is his $100,000 capital invested plus $30,000 (30%) fixed dividend return accrued from offer 1.
Michael, now wishes to roll over his funds into the Diamond Unit Trust Offer 2.
Michael wants to add an additional $50,000 to the $130,000 roll over amount.
PROCESS
On reviewing the official ASIC offer documents, Michael can now exchange his Unit Certificate in offer 1 for a new unit certificate in this offer and in the same trust undertaking the project to the value of $130,000 i.e. he exchanged one unit for a new unit.
Michael also adds $50,000 to the new offer.
The new offer includes a targeted fixed dividend return of 20%.
On completion of stage 1 of the land subdivision (sale of 20 Lots) the funds paid to Michael would look as follows:
OFFER 1: $100,000 + 30% = $130,000
OFFER 2: $130,000 + $50,000 = $180,000
Dividend of 20% paid: $180,000 + $36,000 = $216,000
Actual return over 24 months if funds rolled over:
56% on original $100,000 rolled over
KEY REASONS TO ROLL OVER FUNDS
- DA approved at time of roll over so risks reduced.
- Site increased in value since recent DA approval
- Location is a high demand location not caught up in Sydney/Melbourne market sentiment.
- Investors get paid out sooner as each individual lot sells (no waiting for all to sell to share in profit).
- Investors paid first before the developer (common unit holder) so any profit downgrade may not impact investor returns. Note, if bank debt used then investor returns sit behind bank repayment.
- Existing investors get priority access to this offer.
