AUSTRALIA CHINA INVESTMENT FUND
The following information is provided as a summary only of the terms and conditions of the Australia China Investment Fund (Fund).
The Information Memorandum (IM) for the Fund details all the terms and conditions associated with an investment in the Fund. For further information please download the complete IM for the Fund which is published and available for download via the Trustee's website at: www.vascofm.com
The objective of the Fund is to generate an attractive income return through providing loans to residential and commercial property developers and through direct property Project interests, and through providing loans to other Projects including infrastructure. The Fund may make investments, via loans or other real estate and infrastructure related investments, with related parties of the Investment Manager.
The target rate of return for the Fund is 7.5% per annum (after Fund fees and expenses).
KEY FEATURES OF THE FUND
This Fund offers investors:
- an investment and a management team with a proven track record in financing, real estate investment and funds management;
- an opportunity to invest (indirectly) in real estate and infrastructure investment opportunities that may not otherwise be publicly available; and
- a strategy to invest in real estate and infrastructure projects with significant growth potential as well as other related opportunities such as the provision of loan funds.
KEY INVESTMENT GUIDELINES
Fund investments may take the form of:
- Direct equity investments into real property;
Strategic investments in real estate Projects (which may include other real estate investment trusts and earn-ins to joint ventures);
Mezzanine or other debt instruments secured by mortgages over real estate and where possible borrower guarantees;
- Strategic investments in infrastructure Projects (which may include investment trusts); and
- Government bonds and bank deposits.
FUND INVESTMENT PROCESS
The investment process that will be adopted by the Investment Manager in assessing and making Investments for the Fund will involve the following phases:
- Investment origination and evaluation
- Approval of investment proposal
- Deal execution
ACIF is an active manager and as such, the performance and progress of all investments will be closely monitored and managed post acquisition.
Due to the natures of the Fund's investments, you should consider and investment in the Fund as an illiquid investment. The Trustee does not guarantee that investors will be able to withdraw from the Fund during the term of the Fund. Subject to available liquidity and the Trustee's discretion, Investors may be able to withdraw from the Fund after the minimum investment Term, being 4-years, or such lessor or greater time as the Trustee may determine in its absolute discretion.
All investments involve varying degrees of risk. While there are many factors that may impact on the performance of any investment, certain risk factors should be considered. For more detailed information as to risk factors please refer to the Fund IM.
There are a range of fees associated with an investment in the Fund including management fees and trustee fees. For more detailed information on fees please refer to the Fund IM.