Who can invest in PFM Funds?
PFM funds are currently limited to wholesale, professional and sophisticated investors
How to Apply
- Review PFM’s Part 1 Information Memorandum
- Review PFM's Supplementary IM (Part 2) relevant to the selected real property and associated Sub-Fund you wish to invest in
- Review PFM’s web site experience and management team
- Seek out independent financial and investment advice
Once these steps are completed, applying for an investment in one of PFM Property Opportunities Funds is easy:
- Download the relevant Information Memorandum, which will include your relevant Investment Funds Application Form located at the rear of your Information Memorandum
- Complete the Supplementary (Part 2 IM) application
- Mail or email to PFM: email@example.com
- Complete PFM’s hard copy applications contained in the rear of PFM's Information Memorandum and Supplementary IM Part 2 relevant to the selected real property and associated Sub-Fund and submit your completed forms to:
One Registry Services Pty Limited
Level 11, 20 Hunter Street
Sydney, NSW, 2000
Or calling if you need assistance on +61 3 9618 6888 or emailing us at firstname.lastname@example.org
How do Syndicates work?
Syndication offers small and large investors the chance to participate in the ownership and development of a parcel of land, earmarked for future residential development.
The process is as follows:
- PFM identifies a strategically located parcel of land and assesses the opportunity.
- PFM establishes a syndicate company or trust ("syndicate').
- PFM then negotiates with the vendor/s and completes the purchase of the land parcel by the syndicate.
- PFM then appoints independent experts including:
All are commissioned as part of the rigorous due diligence process detailed in the prospectus or product disclosure statement.
- The offer is made to investors through an Information Memorandum, Prospectus or Product Disclosure Statement.
- Registered investors will receive an offer document, complete the application (if they wish to invest) and then receive their investment/shares/Unit holding allocation based upon the dollars invested, as a proportion of shares in the holding company offered.
- PFM then appoints the project development team who oversee and manage the entire development process.
- The project team then seek to obtain the required planning and development approvals.
- Stage one construction commences and the first lots are released for sale.
- Construction and sale of lots continue in staged releases throughout the life of the project.
- Investors/Shareholders/Security holders are kept informed on the progress of the development through regular updates.
- Investor profits emerge through ongoing property sales, in the form of dividends/distributions which are paid to investors and capital is also returned progressively, as funds, taxation legislation and legislation permit.
- When the development is completed, the syndicate is wound up and final dividends and returns of capital are made to security holders.
How long do residential property developments take?
Residential development project can vary from syndicate to syndicate depending on the land zoning, the size of the land holding, the process for gaining approvals to develop, the market and a range of other factors.
What sort of returns can I expect?
Returns vary according to a number of factors including the performance of the property market at the time of development. Wherever possible, PFM provides a forecast of future returns in the offer document – however, this is not always possible in some longer-term projects where the development start date is not certain. If a forecast cannot be provided, prospective investors will be able to refer to the benefits and risks associated with the project detailed in the offer document.
Are there any risks?
There are risks associated with any land development, these will be detailed within the offer document .
- Interest Rates
- Zoning & Town Planning requirements
- Legislation requirements
- Cultural Heritage Overlays
- Investigations into surrounding flora and fauna
Please read the offer document carefully. Before deciding to invest, we encourage you to consult your financial advisor to assess whether an investment in a PFM Syndicate is appropriate for you.
What is the minimum investment?
As PFM offers are only current available to Wholesale, Professional and Sophisticated investors, the current minimum investment is $100,000.
Do I have to pay stamp duty or GST on my investment?
Can I invest in a property syndicate with my SMSF fund?
Yes, however, before deciding to invest, we encourage you to consult your financial advisor and/or accountants to assess whether an investment in a property syndicate is appropriate for your SMSF.
Can I sell or transfer my interests/shares in a property syndication?
Generally property syndicates are illiquid investments which means it is not possible to transfer or sell your shares before the property development is completed. However, PFM will work with investors to put them in contact with other investors who may wish to purchase their share/unit holding.
What returns can I expect?
Syndicate returns can vary from development to development according to the performance of each development. There are many factors, such as interest rates, sales rates, costs, town planning etc that can all impact the performance of the investment, particularly market conditions in the property market at the time of development.
PFM will provide investors indicative guides as to potential project returns within the offer document, but this will also outline the potential risks as well.
Generally property syndicate investors start to realise a return on their investments once development profits emerge from the project as sales revenue starts to overtake development expenses. These profits are progressively returned to investors in the form of distributions or dividends of income and capital, and continue until the final lots are settled and the syndicate is wound up.