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Rebate Offer
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0.50% (100%)
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Minimum Initial Investment
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$5,000
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Expected Close Date
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CLOSED
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Australian Unity Retirement Village Investment Notes - Series 3.3 offers investors an alternative to cash with the potential for a reliable income stream and capital security. The notes offer a fixed term investment with a fixed quarterly income payment with the initial investment returned in full at the Note's maturity date. The Notes seek to provide investors with:
- A competitive interest rate
- Regular and reliable income payments
- Capital security by way of an underlying investment in the operation of retirement villages
| Notes |
| Investment Terms |
Rate Offer*
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| 3 year term |
8.00% pa |
| 5 year term |
8.25% pa |
| 7 year term |
8.50% pa |
How are funds invested?
The Australian Unity group currently develops and operates retirement villages and aged care facilities in New South Wales and Victoria.
Australian Unity has in place a growth strategy which is underpinned by the rapidly rising demand for retirement villages and aged care facilities across Australia.
The underlying security is a mortgage over all units in the Australian Unity Retirement Village Trust #2 which owns these three retirement villages:
- Constitution Retirement Village, NSW
- Karagi Court Retirement Village, NSW
- Kiah Lodge, NSW
The Trust has no other borrowings and therefore investors have no competing debtors.
What safety nets are in place to protect investment in the Notes?
There are three extra layers of security for investors:
- Protecting your capital - covenant requiring the value of underlying security must be 1.1 times the value of total notes issued. Current value of Trust is $44.2 million representing an underlying security of 1.47 times therefore the value of the trust would need to fall by 25.4% before covenant is breached.
- Protecting your income - 30% excess cash buffer required on interest payments.
- Monitoring covenants - Appointment of an Independent Trustee to oversee covenants on behalf of investors. Should any covenants under the mortgage be breached, the Trustee can take control of all units in the Trust.
About Retirement Living Services
Australian Unity’s retirement living services group employs over 570 staff and has an enviable track record in the retirement living sector.
Australian Unity is a major provider of accommodation and related services to retirees, operating retirement villages and aged care facilities in 12 locations in New South Wales and in 4 locations in Victoria, offering 1,715 home units, 451 aged care beds and 53 community care places.
Whilst estimates vary, it is considered that retirement village living has penetrated only 5% of the over 65 age group. With the rapidly ageing baby boomer and far-reaching changes in the industry it is expected that retirement villages will see greater occupancy, and at a younger age.
The Notes are classified as ‘unsecured notes’ as repayment is not secured over land or tangible (real) property.
*The interest rate is fixed for the term of the note. Neither the interest rate on the Note, nor the repayment of capital is guaranteed.
| Fee Disclosure | | 2020 DIRECTINVEST will rebate 100% of the 0.50% upfront commission in the Australian Unity Retirement Village Investment Notes Series 3 as additional units in the first year. 2020 DIRECTINVEST may receive up to 0.40% trailing commission commencing the second year. This is paid by the fund manager and is NOT an additional charge to the investor. |
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