Frequently Asked Questions

 

$25,000 with minimum increments of $5,000 thereafter.

Yes, however, before deciding to invest, we encourage you to consult your financial advisor to assess whether any investment decision is appropriate for you.

Can I borrow to invest in a Custodian Land syndicate?
Yes, however, before deciding to invest, we encourage you to consult your financial advisor to assess whether any investment decision is appropriate for you.

Yes, however, before deciding to invest, we encourage you to consult your financial advisor to assess whether any investment decision is appropriate for you.

A prospectus is an offer document lodged with ASIC under the Corporations Act which details the development, the benefits and risks of the offer of shares in the syndicate company. The prospectus may also contain independent expert reports on the project from accountants, planners, engineers and valuers.

Custodian Land has issued it’s third prospectus for the offer of shares in Custodian Sunbury Syndicate Limited. Click here to download your copy of the prospectus.

Each special purpose vehicle enters a management agreement with Custodian Land in which Custodian Land agrees to provide project management services. Custodian Land has subcontracted those duties to JLF whom is a leading property development and marketing group.

The management agreement so far as it relates to the Sunbury Syndicate is discussed on pages 24-27 of the prospectus for Custodian Sunbury Syndicate Limited.

Details of each property are contained in the prospectus for each offer.

The property to be purchased and developed by Custodian Sunbury Syndicate Limited is situated at 345 Riddell Road, Sunbury, Victoria and is described as Lot D on Plan of Subdivision 547196D and having Certificate of Title Volume 11121 Folio 500.

Sunbury is approximately 35 kilometres north-west from the Melbourne CBD and comprises a satellite township of 104.9km2.

The property is located in close proximity to a range of services including public transport, retail and recreational spaces as well as a range of employment opportunities.

Further details on the property and locality are detailed on pages 8 to 10 of the prospectus for Custodian Sunbury Syndicate Limited with a plan of the location of the property in relation to its surrounds provided on page 9.

The valuation of each property by an Independent Valuer is disclosed in the prospectus for each offer.

An extract or précis of the report by the Independent Valuer is annexed to the prospectus for each offer and a copy of the full valuation report is available on request.

The property to be purchased and developed by Custodian Sunbury Syndicate Limited has been valued by the independent valuer at $11,000,000.

An extract of the report by the Independent Valuer commences on page 46 of the prospectus for the issue of shares in Custodian Sunbury Syndicate Limited.

Custodian Sunbury Syndicate Limited is purchasing the property for $9,500,000 with settlement due on 30 September 2010.

The purchase price represents a 13.63% discount to valuation.

See page 10 of the prospectus for the Sunbury Syndicate for further details in relation to the purchase arrangements for that property.

Custodian Land is dedicated to providing high quality development opportunities to investors seeking the benefits of residential property investment.

Significant resources have been committed to ensuring investment opportunities are sourced and executed to provide the best possible outcome for investors.

It is intended that the Sunbury Syndicate will develop 246 lots (including one medium density lot) in four stages.

A copy of the concept plan for the Sunbury Syndicate forms page 12 of the prospectus for that offer.

The life of a project varies depending on the size of the land holding, approvals to develop and a range of other factors. These factors are fully detailed in each syndicate prospectus.

In the case of the Sunbury Syndicate the land is the subject of two current planning permits.

Further, the Consulting Town Planner for the Sunbury Syndicate has confirmed in their report commencing on page 77 of the prospectus for the issue of shares in Custodian Sunbury Syndicate Limited that the development activities can commence once a few minor matters are attended to.

As such the Company intends to commence development of the property shortly after settlement of the land purchase.

See page 11 of the prospectus for Custodian Sunbury Syndicate Limited for further details.

Whilst each of the properties the subject of our syndicates are well placed for urban development, are well located, provide underlying security and there is the prospect of profitable developments, there are risks associated with any land development.

The risks with each project are fully detailed in each syndicate prospectus. In the prospectus for the Sunbury Syndicate the risks are detailed on pages 21 to 23 of the prospectus.

One of the potential risks is that the Company may have difficulty marketing and selling the allotments to be developed.

As a commitment to ensuring the success of the Sunbury project the JLF Corporation Pty Ltd (“JLF”) has agreed to enter a referral agreement making JLF contractually responsible for the sale of 110 of the allotments to be developed.

Further details of the nature and effect of the referral agreement entered with JLF are outlined on page 27 of the prospectus for the issue of shares in Custodian Sunbury Syndicate Limited.

Returns will vary according to a number of factors including the performance of the property market at the time of the development of a project. Wherever possible, Custodian Land will provide a forecast of future returns in the prospectus – however, this is not always possible in some longer-term projects where a development's start date is not certain.

As a commitment to the success of the Sunbury project, Custodian Land has agreed to not receive a performance bonus until the investors receive an equivalent return of 15% per annum of their capital invested.

Once that is achieved then any remaining pre-tax profits from the carrying out of the project will be paid 40% to Custodian Land as a performance fee and 60% to the investors.

This is discussed in more detail on page 26 of the Prospectus for the issue of shares in Custodian Sunbury Syndicate Limited.

In that prospectus the Directors have also prepared a forecast (see page 30) and distribution statement (see page 31) which indicates a grossed up distribution yield of 51.4% over the forecast period.

The financial information detailed in the prospectus (including the forecast and distribution statement) was reviewed by the Investigating Accountant.

The closing date for each syndicate is detailed in the prospectus document. However, it's worth noting that any syndicate may close early. An investor does not become a shareholder in a special purpose vehicle until their properly completed application form is received together with their subscription monies and shares are allotted.

What does the term used in the prospectus 'interest on subscription monies' mean?
In the time between receiving your subscription money and allotting you shares in a special purpose vehicle, we will pay interest on your funds. Once the shares have been allotted, the next payment to investors will be in the form of a capital return or dividend.

Each Custodian Land syndicate will be wound up at the completion of the project, with excess funds and any profits returned to shareholders. However, if you would like to sell your shares in a syndicate before the end of a project, Custodian Land will put you in contact with potential buyers and you may then negotiate directly with them to dispose of your shares.

Because of the way in which our investors realise their returns, our syndicates typically suit those investors who have a medium to long-term horizon as the investment should be considered illiquid.