ZANK Property Fund

INTRODUCTION

ZANK Property Fund*

The Fund is an unlisted unregistered open-ended managed investment scheme structured as a unit trust. The Fund provides Investors with an opportunity to acquire Units in the Fund which entitles them to returns generated by the Fund.

The Trustee may issue different unit classes. The different unit classes may have different rights and obligations including the amount of any distribution.

The objective of the ZANK Property Fund is to provide Investors with a stable return through investments in matured property markets. Property investments will be diversified by industry and geographical location with investments being primarily located in Australia and China.

STRATEGY

As at the date of this IM, the Fund offers two distinct unit classes:

• Equity Unit Class

The Equity Unit Class has been established to provide equity funding, indirectly through special purpose companies or trusts, for commercial property primarily located in Australia and China.

Investments will be concentrated in properties deemed undervalued by the Investment Manager. These properties may include but are not limited to half complete development projects, developments under distress, high yield purpose-built properties and any other properties the Investment Manager deems fit to invest in for the benefit of the Fund.

• Debt Unit Class

The Debt Unit Class will provide junior debt to the special purpose vehicles the Equity Unit Class invests in. Senior debt will be provided primarily by traditional banks.

Target Return**

The Investment Manager is targeting the following returns:

Please note the above target returns are before tax and are only a target and not guaranteed.

STRUCTURE

The Fund is an unlisted unregistered managed investment scheme structured as a unit trust and established by a Trust Deed dated 1st March 2020 which regulates the relationship between the Trustee and Investors.

The Trustee has appointed ZANK & Company Pty. Ltd. as the Fund’s Investment Manager, having responsibility for, among other things, marketing the Fund and managing the Fund’s investments.
The monies contributed by Investors as Application Money will be pooled and invested in accordance with the Investment Strategy detailed in sections 3 and 4 of IM.

The following diagram illustrates the structure of the Fund and relevant parties involved:

DISTRIBUTIONS

For the Debt Unit Class, distributions are expected to be paid to Investors nominated bank accounts as at the end of each calendar month, payable within 10 Business Days of the end of each month, subject to the Trustee’s discretion to pay distributions sooner.

Distributions to Investors in the Debt Unit Class will take into account the number of Units held each day within any distribution period.

For the Equity Unit Class, distributions are expected to be paid to Investors nominated bank accounts as at the end of each calendar quarter, payable within 10 Business Days of the end of each quarter, subject to the Trustee’s discretion to pay distributions sooner.

Distributions to Investors in the Equity Unit Class will take into account the number Units held by the Investor at the time the distribution is calculated.

The Trustee reserves the right to make distributions more frequently in its absolute discretion.

The Trustee may also decide not to distribute amounts which it reasonably considers necessary required to meet any outgoings or liabilities (actual or contingent) in respect of the Fund including any amounts required for tax withholdings. Taxes paid or withheld that are allocable to one or more Investors will be deemed to have been distributed to such Investors for the purposes of determining the above calculations.

RISK

It is important that you read and consider the risks associated with and investment in the Fund before deciding whether to invest. For example, distributions or capital returns are not guaranteed.

Further details regarding the risks associated with investing in the Fund are included in Section 7 of this IM.

* As we are a whole sale fund all our products are available for wholesale clients only.
** This is a target return only and is not a forecast or a guaranteed return. There is a risk that you may lose some or all of your capital invested. Indicative rate of return based on historic data of the past performance of the fund. Please note past performance may not be indicative of future performance.