By reading this, I acknowledge that:
- only factual information is contained on this website and nothing is intended to be a recommendation or statement of opinion which influences me to make an investment decision;
- the information contained on this website is not financial product advice; and
- I will read any relevant Offer Document and obtain appropriate advice in relation to my investment objectives, financial situation and particular needs before making any financial decision.
We have placed some of the most commonly asked questions and answers regarding land syndicates below.
- Shares and units are collectively referred to as securities throughout this website
- Product disclosure statements and prospectuses are both referred to as offer documents throughout this website.
Does the reduction in the rate of income tax payable by certain corporate tax entities affect my investment?
Effective from 1 July 2016, there has been a reduction in the rate of income tax payable by certain corporate tax entities. For the 2017 financial year, a rate of 27.5% (instead of 30%) applies to corporate tax entities whose business turnover falls below a certain threshold. This turnover threshold increases over the next 2 years and will then be extended to all corporate tax entities by the 2024 income year.
The impact of these changes are that the corporate tax rate for a syndicate may vary between 27.5% or 30% based on its turnover in any given year. Further, these changes have also been extended to the amount a syndicate can frank a distribution paid to its investors. Depending on a syndicate’s prior year turnover, any fully franked dividend paid may have franking credits of 27.5% rather than 30%. As an investor, you may notice changes to your distribution statements along these lines.
We encourage you to seek your own independent advice on the impact of these changes to your personal tax position.
What is an offer document?
A prospectus or product disclosure statement is an offer document which details the development, the benefits and risks of the offer of securities in the syndicate.
A product disclosure statement is a document similar to a prospectus which is issued for a Peet Syndicate that is established in a Trust structure (managed investment scheme) as opposed to a Company structure.
Offer documents may contain independent expert reports, about the development, from economists, accountants, planners, engineers and valuers commissioned as part of the due diligence. View a sample offer document for a previous investment that is now closed.
Where are Peet's syndicate landholdings located?
Peet’s current retail syndicates have land holdings in Western Australia and Victoria.
How long do developments take?
The life of a development project varies from syndicate to syndicate depending on the size of the land holding, the process for gaining approvals to develop, the market and a range of other factors. These factors are fully detailed in the offer document for each syndicate.
How often are offers available in a Peet syndicate?
This will depend on Peet securing properties that are suitable for syndication.
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, Peet provides a forecast of future returns in the offer document – this forecast will be based on a number of assumptions that will be outline in the relevant offer document. It 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, and each offer document details anticipated risk factors for that project. 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 Peet Syndicate is appropriate for you.
What is the minimum amount I can invest?
$5,000 is generally the minimum.
Do I have to pay stamp duty or GST on my investment?
Can I invest in a Peet syndicate for my personal super fund?
There are many privately managed super funds that invest in Peet syndicates. However, before deciding to invest, we encourage you to consult your financial advisor to assess whether an investment in a Peet syndicate is appropriate for you.
How long is a syndicate open to investors?
The closing date for each syndicate offer is included in the offer document.
What does the term 'interest on subscription monies' mean as it appears in the offer document?
In the time between receiving your subscription funds and allotting you securities in the syndicate, we may pay interest on your funds.
Will my subscription be scaled, and what does that mean?
Where a Peet syndicate is popular and we have received applications for more securities than are available, applications are 'scaled' and security holders are not allotted as many securities as they may have applied for.
If your application is scaled, the excess application funds will be returned to you.
What if I want to sell my securities?
Each Peet syndicate is wound up at the completion of its project.
However, if you would like to sell your securities in a syndicate before the end of a project, Peet will put you in contact with potential buyers and you may then negotiate directly with them to dispose of your securities.