Q: "How do I invest in a GDI Trust?"
A: You may either:
Call GDI Property Group Pty Limited direct on (02) 9223 4222 to request a copy of the relevant Information Memorandum or Product Disclosure Statement.
Register online to receive a copy of the relevant Information Memorandum or Product Disclosure Statement.
Contact your Financial Adviser about a GDI Property Trust.
Applications can only be made on an Application Form attached to an Information Memorandum or Product Disclosure Statement and must be accompanied by a cheque in Australian Dollars.
Q: "Am I allowed to invest in a GDI Property Trust?"
A: You will generally need to be a wholesale client
Although GDI Information Memorandum’s are documents, GDI Trusts are generally not a registered managed investment scheme. One impact is that only wholesale clients (as the Corporations Act defines this) can invest.
Your investing entity will be classified as a wholesale investor if you (if you are in control of the entity) or the entity meets the criteria in the categories listed below.
If you don’t fall into one of these categories, we may still have some ability to accept you, so please contact us.
The main categories
| 1. The investor has an accountant’s certificate that shows that they have net assets of at least $2.5 million or gross income for each of the last two financial years of at least $250,000. The certificate must not be more than 2 years old. |
and in calculating the $2.5 million or $250,000 the investor can include the net assets or gross income (as relevant) of any company or trust it controls.
See below for the meaning of “control”. |
| 2. The investor is a company or trust controlled by someone who has an accountant’s certificate as mentioned in number 1 |
See below for the meaning of “control”. See Accountant’s Certificate |
| 3. The investor is a person considered by their adviser to have the requisite previous experience |
See the Adviser’s Certificate |
| 4. Invest at least $500,000 at one time (excluding superannuation monies) |
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| 5. The Trustee considers the investor to have requisite experience to invest in the Trust |
(a) The Trustee must be satisfied on reasonable grounds, that the client has previous experience in using financial services and investing in financial products that allows the client to assess:
(i) the merits of the Trust;
(ii) the value of the units in the Trust;
(iii) the risks associated with holding units in the Trust;
(iv) the client's own information needs; and
(v) the adequacy of the information given by the Trustee;
(b) The Trustee must give the client before or at the time when the units are issued, a written statement of the Trustee’s reasons for being satisfied as stated above.
(c) The client must sign a written statement, before or at the time when the product or service is provided, acknowledging that the Trustee:
(i) has not provided the client a Product Disclosure Statement or any other document that would normally be required to be given to a retail client; and
(ii) has no other obligations towards the client that would apply if the client were a retail client. |
| 6. Invest at least $500,000 together with an “associate” at one time (excluding superannuation monies) |
Reasons the investor and someone else can be associated include:
- the other person is a trustee of a trust in relation to which the investor benefits or is capable of benefiting the other person is a person with whom the investor is acting in concert, or proposes to act concert, in respect of the investment
- the other person is a person with whom the investor is, or is proposing to become, associated, whether formally or informally, in any other way in respect of the investment
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| 7. The investor and a body corporate which the investor wholly owns and controls together invest at least $500,000 in aggregate |
See below for the meaning of “control”. |
| 8. The investor is a business which is not a small business |
A small business is one that employs less than 100 employees if the business is or includes the manufacture of goods, or otherwise is a business which employs less than 20 people. |
| 9. The investor is a subsidiary or holding company of another body corporate which is a wholesale investor |
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| 10. The investor is a financial services licensee |
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| 11. Investor is the trustee of a superannuation fund with net assets of at least $10 million |
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| 12. The investor controls at least $10 million |
Including any amount held by an associate or under a trust that the investor manages. |
Q: "What is "control?"
A: “Control” means you have the capacity to determine the outcome of decisions about the company or trust’s financial and operating policies of the investing entity.
The practical influence you can exert (rather than the rights you can enforce) is the issue to be considered and any practice or pattern of behaviour affecting the company or Trust’s financial or operating policies is to be taken into account (even if it involves a breach of an agreement or a breach of trust).
However you do not control a company or trust merely because you and a third entity jointly have the capacity to determine the outcome of decisions about the company or Trust’s financial and operating policies.
If you have the capacity to influence decisions about the company or Trust’s financial and operating policies and are under a legal obligation to exercise that capacity for the benefit of someone other than the your members, you are taken not to control the company or trust.
Q: "If I am a retail investor, can I invest in a GDI Trust?"
A: We have some ability to accept a limited number of applications in addition to the categories noted above. Contact us.
In addition to this, many of our investors meet the wholesale investor test because they combine the assets or income with that of their super funds. See the Accountant’s Certificate and speak to your accountant.
Q: "Who Manages my Investment?"
A: Your investment is in the hands of property industry professionals. GDI Funds Management Limited, its directors and executives, and their management practices, are subject to the scrutiny of ASIC and independent research houses. GDI Funds Management Limited holds an Australian Financial Services License, authorising it to manage this type of investment. GDI also carries appropriate professional indemnity insurance, as required by ASIC.
The directors and management of GDI Property Group Pty Limited are experienced in the operation and management of property trusts, as well as a wide variety of other relevant disciplines, including the development and coordination of leasing campaigns, property refurbishment and marketing. We will use this expertise to maximise the performance of your investment.
Q: "How is income distributed?"
A: It is the responsibility of GDI Property Group Pty Limited, to distribute net income from the Property. GDI Property Group Pty Limited will cause the deposit of the net income direct into a bank account maintained and operated by GDI. GDI will pay all expenses including mortgage interest and management fees out of that account, at the direction of GDI Property Group Pty Limited.
GDI Property Group Pty Limited will authorise the distribution of each Investor's share of the cash available for distribution according to the number of Units which the Investor holds in the Trust within 21 days after the end of each month. Distributions will only be made to investors if there is sufficient cash, including sufficient funds to meet future expenses, after taking into account future expected income.
Q: "Can Superannuation Funds Invest?"
A: Each Trust is structured as a unit trust. Complying and self managed superannuation funds can participate in each Offer. GDI Property Group Pty Limited expects each Trust will be a widely held trust pursuant to Subdivision C of Division 1 of the Superannuation Industry (Supervision) Act 1993 and will thus be an allowable investment for trustees of superannuation funds.
Q: "What is the nature of the Investment?"
A: Each Investor effectively becomes a part-owner of the Property, as the Trust Manager, at the direction of GDI Property Group Pty Limited, will hold the Property for and on behalf of each investor in accordance with their individual interest.
Issues relating to a Trust will be voted on by Investors as provided for in the Constitution. Voting rights will be proportional to the amount of each Investor's interest.
By completing and sending an Application Form to the Manager, you are agreeing to be bound by the Constitution and the acknowledgements contained within the Offer Document.
Q: "What are non-recourse Borrowings?"
A: All borrowings on behalf of a Trust are secured solely against Trust property (non-recourse to investors). This means that you have no financial or other commitment beyond your subscription.
Q: "What is tax advantaged Income?"
A: Where the Property is eligible for significant tax deductions based on building allowances, plant and equipment depreciation, and the amortisation of the costs of borrowing, further deductions are available for the amortised costs of the Offer. The total amount of deductions claimed for depreciation and building allowances will reduce the cost base of the Property.
Q: "What is the role of the Trustee?"
A: The trustee's role is to ensure investor's interests are being protected at all times. In general terms, the trustee's role is to separately hold all the assets, including the title deed of the property and bank accounts of the trust, on behalf of the investors.
Q: "How do I get paid?"
A: GDI Property Group Pty Limited will arrange for the collection of all rental income payable or receivable in respect of the Trust and pay it into an account opened and maintained by the Custodian. The Manager will arrange for the payment of all expenses of the Trust out of the account operated by the Trustee.
Each investor will rank for distribution of income at the end of each month in proportion to the income entitlement for that number of Units owned by each Investor.
Q: "When will I receive updates on my Investment?"
A: You will be kept aware of the status of your Investment with quarterly income statements and other periodic reports.
Q: "Do I receive an Annual Tax Statement?"
A: GDI Property Group Limited will send all investors in each Trust an annual tax statement within three months of the end of each financial year.
Q: "Can I sell my Investment?"
A: Investors may exit earlier by the independent sale of their Units to a third party and should contact GDI Property Group Pty Limited to assist with the relevant documentation.
Q: "How long is the Investment for?"
A: Generally, the term of a Trust is structured to be between 4 to 9 years before being wound up depending on the nature of the investment. However, there is no minimum period - should an opportunity arise to sell the Property(s) prior to this time, the Trust will be wound up accordingly.
Q: "Change of Investor details"
A: During the term of the Trust, Investors must inform GDI Property Group Pty Limited of any change to the details originally submitted on their Application Form. Any such change must be requested in writing and signed by all parties who signed the original Application Form. In order to assist with this process, refer to the Change of Investor Details form on our website.
Q: "How do I lodge a complaint?"
A: GDI Funds Management Limited operates a complaints and dispute resolution system in accordance with ASIC guidelines. Initially, a complaint may be directed to GDI Funds Management Limited. We will acknowledge the matter in writing forthwith and respond with a determination of the matter raised within 30 days. Should the complaint not be resolved to the satisfaction of the Investor at this stage, the Investor may refer the matter to the external complaints resolution service to which GDI Funds Management Limited subscribes. Contact details for the service can be obtained from GDI Funds Management Limited.
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