FAQ
WHAT IS THE MINIMUM INVESTMENT?
$25,000 with minimum increments of $5,000 thereafter.
CAN I INVEST IN A CUSTODIAN LAND SYNDICATE THROUGH MY SELF-MANAGED SUPERANNUATION FUND?
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.
WHAT IS A PROSPECTUS?
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 its fourth Prospectus for the offer of shares in Custodian Pimpama Rivers Syndicate Limited. Click here to download your copy of the Prospectus.
WHO MANAGES THE DEVELOPMENTS?
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, a leading property development and marketing group.
The management agreement so far as it relates to the Custodian Pimpama Rivers Syndicate Limited is discussed on pages 34 to 37 of the Prospectus Custodian Pimpama Rivers Syndicate Limited.
WHERE ARE THE PROPERTIES?
Details of each property are contained in the prospectus for each offer.
The property to be purchased and developed by Custodian Pimpama Rivers Syndicate Limited is situated at 12 Reedmans Road, Ormeau, Queensland and is described as that part of lots 512 on SP126991, 123 on SP149453, 514 on SP149453 and 518 on SP159469 being Management Lot one, Management Lot two and Management Lot four.
Ormeau is situated 40 kilometres from the Brisbane CBD and 30 kilometres from Surfers Paradise in the Brisbane-Gold Coast growth corridor.
The Property is well serviced by a strong road network both north to Brisbane and the Sunshine Coast and south to the Gold Coast by the M1 Motorway. In addition, the locality is serviced by the Brisbane to Gold Coast electric train.
Ormeau is within the fastest growing region on the Gold Coast and one of the fastest in the State of Queensland.
A large amount of residential and commercial development is currently taking place and/or is proposed within this immediate and surrounding area.
Existing retail and commercial services include Brygon Reserve Shopping Centre, Coomera Shopping Centre, Upper Coomera Village, Coomera City Centre and the proposed extension of the Homemaker Centre and establishment of the Coomera Town Centre.
Further details on the property and locality are detailed on pages 19 to 21 of the prospectus for Custodian Pimpama Rivers Syndicate Limited with a plan of the location of the property in relation to its surrounds provided on page 20.
WHAT IS THE VALUE OF THE PROPERTIES?
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 Pimpama Rivers Syndicate Limited has been valued by the independent valuer at $13,500,000.
An extract of the report by the Independent Valuer commences on page 56 of the prospectus for the issue of shares in Custodian Pimpama Rivers Syndicate Limited.
Custodian Pimpama Rivers Syndicate Limited is purchasing the property for $12,000,000.
See page 22 of the prospectus for the Pimpama Rivers Syndicate for further details in relation to the purchase arrangements for that property.
HOW IS THE PROPERTY INTENDED TO BE DEVELOPED?
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 Pimpama Rivers Syndicate will develop 232 lots in seven stages. A copy of the concept plan for the Pimpama Rivers Syndicate forms page 24 of the prospectus for that offer.
HOW LONG DO THE DEVELOPMENTS TAKE?
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 Pimpama Rivers Syndicate the property is well advanced through the planning process as a development permit has been granted for the reconfiguration of the property in accordance with the concept plan.
With the property in the appropriate residential A zone and a development permit having been granted to reconfigure the property into 232 allotments, it should not take a significant amount of time to have the property ready for construction.
Based on the consulting engineer's report and the likely time frames for engineering plan approvals, it is anticipated that the construction works for the first stages of the project could commence during April 2012.
See page 23 of the prospectus for Custodian Pimpama Rivers Syndicate Limited for further details.
WHAT IF THE ALLOTMENTS TO BE DEVELOPED CANNOT BE SOLD?
Whilst each of the properties that are 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 Pimpama Rivers Syndicate the risks are detailed on pages 30 to 33 of the prospectus.
WHAT SORT OF RETURNS CAN I EXPECT?
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 the development start date is not certain.
As a commitment to the success of the Pimpama Rivers project, Custodian Land has agreed to not receive a performance bonus until the investors receive an equivalent return of 12.5 per cent 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 10 per cent to Custodian Land as a performance fee and 90 per cent to the investors.
This is discussed in more detail on page 36 of the Prospectus for the issue of shares in Custodian Pimpama Rivers Syndicate Limited.
In that prospectus the Directors have also prepared a forecast (see page 38) and distribution statement (see page 39) which indicates a grossed up distribution yield of 34.7 per cent over the forecast period.
The financial information detailed in the prospectus (including the forecast and distribution statement) was reviewed by the Investigating Accountant.
HOW LONG IS A SYNDICATE OPEN TO INVESTORS?
The closing date for each syndicate is detailed in the Prospectus document. However, it is 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 IF I WANT TO SELL MY SHARES?
What if I want to sell my shares? 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.
