|
|
IPO Open Offers
|
Broker to the Issue |
 |
|
|
Key Indicative Dates
|
|
Offer Summary
|
| Offer Opens: |
August 12, 2001 |
| Offer Closes: |
Open ended, pending minimum subscription being met by 30 September 2001,
up to 27 August 2002 |
|
|
| Application price: |
$1.00 per unit |
| Listing: |
The units will not be ASX listed |
| Minimum Application: |
10,000 ($10,000) and then in multiples of 1,000 ($1,000) |
| Units on Offer: |
6.82 million units, to raise up to $6.82 million |
| Minimum Subscription: |
$4,000,000. Applicant monies returned if full after 30 September
2001 if minimum amount not is not achieved |
|
High projected yield of 10.5% in year 1, growing to 12.8% in year 5.
Forecast first year tax advantage is 81%.
Each property has a secure 20 year lease to Primelife.
Independent Property Investment Research has given the Trust overall investment ratings of AA, AA- and A+.
No entry fees.
Income paid monthly.
The objective of the Trust is to distribute monthly income from the properties under management to Unit Holders and to maintain and accrue its real capital value.
PRACPT is inviting investors to apply for $6.82 million of units which will be applied to the trusts borrowings to purchase 3 properties from Primelife Corporation (PLC):
- Heathglen Retirement Village, Werribee, VIC - 114 2 bedroom units, and 37 supported residential service (SRS) apartments - valuation $7,000,000.
- Cumberland View Nursing Home, Wheelers Hill, VIC - 30 bed purpose built high care nursing home - valuation $3,000,000
- Riverwood Hostel, Albury, NSW - Resident funded retirement village incorporating 27 serviced apartments (the trust is acquiring the licensed hostel as well as the management rights of the adjoining retirement village) - valuation $3.5 million.
- The Trust will purchase entitlements to annual fees from the three aged care facilities. The 3 properties are expected to yield 10.5% in year 1 increasing to 12.8% by year 5 with significant tax advantage. Income is paid monthly.
The manager intends to grow the trust through acquisition to provide greater geographic diversification and diversity within the designated asset class.
Note that the trust is unlisted and therefore likely to be illiquid in the short term. There is unlikely to be a secondary
market for these Units, and therefore there are no rights for the Unit Holders to require the units to be purchased by the
Responsible Entity.
PRACPT is being established to be a public property unit trust dedicated to the specific asset class of property used for
retirement and aged care.
State Trustees Limited, on behalf of the Trust, will hold the properties on behalf of unit holders. APCHL is licensed by
ASIC as the Responsible Entity (RE). The RE is responsible for the proper promotion and management of the trust as well as
the selection of the properties and preparing the prospectus. The Trust has been registered by ASIC as a Managed Investment
Scheme.
Directors:
John Deans, 66. (Chairman and Non Executive Director)
Forty years financial services experience primarily with the NAB in senior roles including Regional Responsible Entity for Victoria and WA, Senior Vice President (New York) and Indonesian Representative. Other roles include project leader for the Australian Bankers Association for Asian banking relations and a role helping with the implementation of bank lending controls at the Indigenous National Bank of Vanuatu.
William Lionel Lewski, 44 (Managing Director)
Over 20 years experience as the principle of a public accounting practice (as a CPA) as well as a consultant for a range of business providing property, syndication and management services. Experience in the aged care industry has been gained as the sole director of a government registered approved provider under the Aged Care Act of 1997.
Cedric Richard Palmer Beck, 57 (Non Executive Director)
Career in property industry including Colliers Jardine (WA), LJ Hooker Australia and as a past councillor of the Property Council of Australia. Other experience includes a national corporate governance practice with KPMG, Wealthpoint Funds Management and directorships in 5 public companies.
Kinsman Samuel Jacques (Non executive Director)
Property experience primarily in commercial and retail property management. Ten years with 7 Eleven as Victorian Development Responsible Entity for leasing of 7 Eleven convenience stores. Currently National Manager of Urbis T Property.
Mark Frederick Butler, 41 (Non Executive Director)
Extensive experience in the management of commercial properties. Joint founder of Butler & Company undertaking commercial, residential and rural sales, acquisition and management.
|
Property Acquisition
|
$13,500,00
|
|
Establishment and acquisition costs and fees
|
$1,138,250
|
|
Stamp Duty and legals on acquisition
|
$266,000
|
|
Working Capital
|
$15,750
|
|
|
|
|
TOTAL
|
$14,920,000
|
|
Financial Forecasts and Projections
|
|
|
9 months to June 2002
|
year to June 2003
|
year to June 2004
|
year to June 2005
|
year to June 2006
|
|
Property Income
|
$ 1,038,750
|
$ 1,426,550
|
$ 1,469,347
|
$ 1,513,427
|
$ 1,558,830
|
|
Interest on surplus cash
|
$ 3,292
|
$ 3,435
|
$ 3,581
|
$ 3,733
|
$ 3,888
|
|
Total
|
$ 1,042,042
|
$ 1,429,985
|
$ 1,472,928
|
$ 1,517,160
|
$ 1,562,718
|
|
|
|
|
|
|
|
|
less:
|
|
|
|
|
|
|
Interest
|
$ 425,250
|
$ 567,000
|
$ 567,000
|
$ 567,000
|
$ 567,000
|
|
Management Fees
|
$ 66,863
|
$ 91,825
|
$ 94,579
|
$ 97,417
|
$ 100,339
|
|
Audit Fees
|
$ 7,500
|
$ 10,000
|
$ 10,000
|
$ 10,000
|
$ 10,000
|
|
Custodian
|
$ 7,500
|
$ 10,000
|
$ 10,000
|
$ 10,000
|
$ 10,000
|
|
Total Expenses
|
$ 507,113
|
$ 678,825
|
$ 681,579
|
$ 684,417
|
$ 687,339
|
|
|
|
|
|
|
|
|
Cash Available for distribution
|
$ 534,929
|
$ 751,160
|
$ 791,349
|
$ 832,743
|
$ 875,379
|
|
Units on Issue (millions)
|
6.82
|
6.82
|
6.82
|
6.82
|
6.82
|
|
Distribution (cents per unit)
|
$ 0.078
|
$ 0.110
|
$ 0.116
|
$ 0.122
|
$ 0.128
|
|
Return on Equity (annualised %)
|
10.5%
|
11.0%
|
11.6%
|
12.2%
|
12.8%
|
|
|
|
|
|
|
|
|
Tax Advantage Calculation
|
|
|
|
|
|
|
Cash available for distribution
|
$ 534,929
|
$ 751,160
|
$ 791,349
|
$ 832,743
|
$ 875,379
|
|
|
|
|
|
|
|
|
less:
|
|
|
|
|
|
|
Depreciation Allowances
|
$ 203,700
|
$ 270,300
|
$ 263,000
|
$ 257,800
|
$ 253,900
|
|
Capital Establishment Costs
|
$ 227,650
|
$ 227,650
|
$ 227,650
|
$ 227,650
|
$ 227,650
|
|
Total Tax Allowances
|
$ 431,350
|
$ 497,950
|
$ 490,650
|
$ 485,450
|
$ 481,550
|
|
Taxable Income
|
$ 103,579
|
$ 253,210
|
$ 300,699
|
$ 347,293
|
$ 393,829
|
|
Percentage of income that is Tax free
/ Tax deferred
|
81%
|
66%
|
62%
|
58%
|
55%
|
| Contact Information at Sanford Securities |
Please contact your relationship manager or a Sanford Customer Service Officer
E-mail : ipo@sanford.com.au
Telephone: 1300 360 896
|
View a printable version of
this document
Disclaimer: This
commentary reflects the writer's opinion and no recommendation is
intended. The writer and their associates may hold shares directly
or indirectly in the companies discussed above.
This report has no regard to the investment objectives, financial
situation or particular needs of any specific recipient. This
report must not be regarded by recipients as a substitute for the
exercise of their own judgement. The report is published for
informational purposes solely and is not to be construed as a
solicitation or an offer to buy or sell any securities. This report
is based on information obtained from sources believed to be
reliable but not guaranteed as being accurate, nor is it a complete
statement or summary of the securities or any other matter referred
to in the report. Any opinions expressed in this report may change
without notice and Sanford Securities Limited ("Sanford") is not
obliged to update or keep current the information contained herein.
Sanford and/or its directors, officers and employees may have or
have had interests, and may at anytime make purchases and/or sales
as principal or agent in the securities referred to in this
report.
Sanford
accepts no liability at all for any loss or damage of any kind
howsoever arising out of the use of all or any part of this
report.
|
|
44.5 
