FREQUENTLY ASKED QUESTIONS
We can quickly and easily answer all your questions
Here are some common questions our investors have asked us.
WHAT IS BEING OFFERED?
Private investors are being offered a direct investment with the property development company, with the aim of preserving capital and sharing in potential development returns.
There will be a capital raising by way of developers equity, primary bank funding and committed investor’s equity.
The land has been secured as well as the development approval for a modern, freehold strata commercial building in a prime location in South Melbourne
WHO IS THE DEVELOPER?
The developer is Perri Projects Proprietary Limited, a specialist private Australian property developer with currently more than AU$2 billion of properties around Australia either being developed or in the pipeline.
The principal's of Aurient have over 10 years of experience working directly with Perri and its management across a spectrum of projects in sectors including residential and commercial in Melbourne, Sydney and Brisbane.
- WHY DID AURIENT INVESTMENT PARTNERS SELECT THIS DEVELOPMENT AS A INVESTMENT OPPORTUNITY?
n order to select this investment, Aurient has undertaken in excess of 12 months of market analysis of Australia’s key property market sectors and geographies.
For this investment we have chosen to target the Melbourne Commercial office market, particularly in South Melbourne, a prime location.
Aurient has extensive experience in this location, it’s principals having being involved with projects in this area for the past 20 years.
WHAT IS AURIENT INVESTMENT PARTNERS ROLE IN THE DEVELOPMENT?
Aurient has been conducting extensive research, due diligence and market investigations in regards to this project.
Aurient will be acting as the major capital raiser of private investor’s equity, and will monitor, advise, and report to investors on the progress of the development,
In addition, Aurient will be making a capital contribution in line with other investors, and sharing in the upside and risks.
Aurient will receive an Investment Management fee equivalent to 1% of invested capital per annum payable 12 monthly in advance for its services to the investors. .
WILL AURIENT OVERSEE THE DEVELOPMENT, MONITOR THE PROGRESS AND REPORT TO ME?
Yes, as part as it's on-going service to it's clients, Aurient Investment Partners will undertake this role on behalf of its capital invested clients.
This will involve quarterly progress updates on major milestones and metrics, regular site inspections a bi-annual investor update presentation.
Aurient will be participating in a monthly Project Control Group Meeting with the developer and key stakeholders, and will be in regular contact with its development partner as the project progresses. In addition, Aurient will be consulting to the developer on the sales and marketing of the off-plan offices.
CAN A FOREIGN PERSON INVEST?
Yes, there are no restrictions on Foreign Buyers, and also, no application needs to be made, and no fee paid, to the Australian FIRB.
HOW LONG IS THE INVESTMENT?
Unlike REIT’s and Property Funds, or buying your own individual property, this is not a “buy and hold “ strategy. You are taking part in the development itself, with the aim of sharing in the developers upside. Therefore it is intended to be fully completed and profits returned, within 28 months of commencement.
WHAT CURRENCY IS THE INVESTMENT MADE IN?
Australian dollars. It is your responsibility to convert to the Aussie dollar when investing, and your returns will also be paid in Aussie dollars.
WHAT HAPPENS IF the AU$ GOES UP AFTER I INVEST?
You make your investment in Australian dollars. All development costs and profits are in Australian dollars.
If the dollar is higher at the end of the term, you could also benefit from windfall gains directly from the currency movement dpending upon your home currency.
WHAT IS THE REQUIRED AMOUNT OF INVESTMENT?
Total required amount of investment offered to private investors is approx. AU$8 million. After that has been raised, there is no further funding required. Minimum investment is set at AU$350,000.
CAN I INVEST AFTER MY INITIAL INVESTMENT?
Yes, but only providing there is still allocation of capital available.
HOW LONG IS THE INVESTMENT?
There is no fixed timeframe but the estimated term of the investment period is expected to be approx. 24-30 month.
CAN I GET OUT EARLY IF I NEED TO?
The joint-venture is wound up upon the sale of the final strata units and therefore you cannot withdraw during the investment term. However, if you would like to sell before the end, you may arrange for your own private sale of your investment, however, some terms and conditions may apply.
DO I HAVE TO PAY CAPITAL GAINS TAX, LAND TAX OR TAX ON RENTAL ON MY INVESTMENT?
DO I HAVE TO ORGANISE AN AUSTRALIAN TAX RETURN?
IS THERE A TRACK RECORD?
The developer has a proven performance track record of success .
Previous performance has resulted in investors averaging 23.2% as at 31 December 2019, across a portfolio of properties ranging from both residential to commercial projects, some of which were low rise and some high rise.
WHAT ARE THE RISKS?
All property development investments carry risks. There is a risk mitigation document available which you should study and understand before making any commitment.
WHAT ARE THE AUSTRALIAN TAXES I HAVE TO PAY?
The developer pays all taxes in Australia out of the development profits before repayment of capital and before any profit distributions to investors are made.
Therefore, there should be no Australian taxes payable by individual investors, and no Australian tax return is required to be lodged by foreign investors
Of course, all investors should seek their own individual tax advize depending upon their personal situation.
IS THE TARGETTED 15% IRR REALISTIC?
Based on the developer’s track record, and the location and potential demand for this property, we believe this is achievable.
CAN I INVEST THROUGH MY FINANCIAL PLANNER?
No. This is structured for a direct investment and no fees are payable to financial planners for referring clients.
HOW TO MOVE FORWARD TO THE NEXT STEP?
You may register for more information on this website, and this will give you access to all the password protected pages, including more a detailed FAQ, and an application form to make an investment.