Charter Hall Direct Sydney Olympic Park Fund

Fund Overview

The Charter Hall Direct Sydney Olympic Park Fund (Fund) is a single asset, closed end unlisted real estate fund.

Fund Type The Fund is a single asset, closed end unlisted real estate fund.
Investment Strategy

7 Murray Rose Ave, Sydney Olympic Park (Asset), a 5,931 square metre commercial office building comprising five levels of office space and ground floor retail, and two levels of basement carparking. The Fund is forecast to provide:

1: a distribution yield of 9.25 per cent in FY181; and
2: the potential for capital growth through active asset management.

Key Financial Information

Distributions Forecast distribution yield to Unitholders is 9.25 per cent in FY191.
Distribution Payments Quarterly
Tax Deferred Distributions Distributions are anticipated to include a tax deferred component.
NTA The Fund’s NTA value per unit as at 30 June 2018 was $1.64. Excluding the negative impact of accounting for the hedging the Fund has in place, the Fund’s NTA value per unit remains at $1.64.
Gearing The Fund’s gearing ratio as at 30 June 2018 is 38.1 per cent.
1 – Based on the Issue price of $1.00 per Unit. Distributions are not guaranteed. For further information, please refer to Section 6 of the PDS.

Fund Term

Fund Term – Timeframe and Liquidity

On 29 November 2017, Unitholders overwhelmingly voted in favour to extend the Fund Term by three years to December 2020.

Due to the illiquid nature of the Fund, Unitholders will not have a right to redeem their interest in the Fund during the Fund Term.

Our Board

Grant Hodgetts
Non-Executive Chairman
BA, Assoc Dip Val, AAPI, MAICD
Greg Paramor AO
Non-Executive Director
FAPI, FAICD, FRICS
Ross Strang
Non-Executive Director
LLB (HONS), MAICD
Adrian Harrington
Head of Capital & Product Development
B.SC (HONS), FFINSA, GAICD

Our Executives

Ben Dodwell
Head of Diversified Development
BA (I.D.), Grad. Dip. App. Fin. SIA, DIP PROP FIN, MAICD
Adrian Harrington
Head of Capital & Product Development
B.SC (HONS), FFINSA, GAICD
Travis Butcher
General Manager, Finance - Diversified
B.Acc, CA, Grad. Dip. AFI SIA
Scott Martin
Head of Finance - Diversified
B.Com, CA
Mark Stewien
Head of Legal - Diversified
LL.B, BCom (Finance)

Asset Overview

The six level 5,931 square metre commercial building comprises five levels of office space and ground floor retail, and two levels of basement car parking (the Asset). The Asset has been designed to provide a modern and flexible work environment with outstanding environmental credentials. The Asset was completed in November 2012.

Thales Australia, part of the Thales Group, a leading international electronics and systems group serving the defence, aerospace, space, security, and transport markets has leased 5,230 square metres (100 per cent) of the office space, 42 square metres of the retail space and 47 car spaces for their new Australian headquarters. For more information on Thales Australia visit their website at www.thalesgroup.com.

The 701 square metres of ground floor retail space is 100 percent leased to a bike shop (231 square metres), a coffee shop (69 square metres), Thales Australia (42 square metres) for a substation, a medical/dental centre (119 square metres) a Vietnamese Restaurant (155 square metres) and a Wellness Centre (85 square metres).

The building has a 5 star NABERS Energy Base Building rating.

Investor Centre

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Distributions & NTA

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AMIT

What is an Attribution Managed Investment Trust (AMIT)?

An AMIT is a managed investment trust that has chosen to apply the AMIT regime. Managed investment trusts include most listed trusts and other widely held trusts.

What is the AMIT regime?

The Tax Laws Amendment (New Tax System for Managed Investment Trusts) Act 2016 (the Act), which establishes a tax system for managed investment trusts (MITs), received Royal Assent on 5 May 2016. The rules apply from 1 July 2016.

Prior to the commencement of the AMIT regime, family trusts and large managed investment trusts were subject to the same set of tax laws. Many aspects of these laws were uncertain and difficult for managed investment trusts to apply in practice and resulted in unnecessary administration costs.

The AMIT regime provides a specific set of rules that are intended to provide greater flexibility in the operation of an AMIT’s tax affairs and to reduce administration costs.

Under the AMIT Regime, unitholders are taxed on the taxable income that is “attributed” to them by a Fund on a “fair and reasonable” basis.  Under this approach a Fund can attribute an amount of taxable income to unitholders that is greater than the cash paid.

The AMIT regime will not change the overall manner in which the Fund’s income is taxed or change the way in which investors complete their tax return. Consistent with the previous trust taxation regime:

  • the Fund itself will not be subject to tax;
  • an Australian resident unitholder will include their share of the Fund’s taxable income in their assessable income for the year to which the income relates (not the year in which it is received);
  • withholding tax will be deducted from distributions to non-resident unitholders;
  • investors will include the different components of their share of the Fund’s taxable income in the tax return labels; and
  • where cash distributed to unitholders is greater than their share of the net income of the Fund, the unitholder is required to reduce their cost base in the units of the Fund.

At this stage, Folkestone Funds Management Limited intends to continue with its current distribution policy and will attribute a Fund’s taxable income in the same manner as under the previous trust taxation regime which is in proportion to the cash distributed to each unitholder.

Why is the Fund electing to opt-in to the AMIT Regime?

Folkestone Funds Management Limited has decided to elect for the AMIT Regime to apply to the Fund commencing from 1 July 2017 for the following reasons:

  • elimination of a number of areas of uncertainty in the existing laws;
  • tax status of Fund – The AMIT Regime deems the Fund to be a “fixed trust” providing certainty to the Fund to be eligible for certain tax concessions, such as the ability to recoup carried forward trust tax losses;
  • prescriptive treatment of under or over-distributions of taxable income (“overs” or “unders”) of a Fund which will reduce the requirement to amend prior year tax returns previously lodged; and
  • prevention of double taxation – The AMIT Regime provides the ability to make upward cost base adjustments to Fund units where cash distributions are less than the taxable income attributed to unitholders. In the absence of this, unitholders may be taxed twice on certain amounts attributed to them.

When does the AMIT regime start?

Managed investment trusts can choose to be AMITs with effect from the year ended 30 June 2016 or any later year.  The Fund has elected to become an AMIT from 1 July 2017. The Fund will be an AMIT for all subsequent years as the election is irrevocable.

Tax Components

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Reports and Publications

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Frequently Asked Questions

1. How much are my Distributions?

http://folkestone.com.au/sydney-olympic-park/ Distributions & NTA

2. Where can I find the Fund's NTA unit price?

http://folkestone.com.au/sydney-olympic-park/ Distributions & NTA

3. How do I invest?

The Fund is a closed end fund not open for new subscriptions.

4. Is there a Redemption Facility for the Fund?

No redemption facility is available.

5. Can I sell my Units in the Fund?

A Unitholder can transfer Units in the Fund to another person by providing the Responsible Entity with a completed standard transfer form signed by both the transferor and the transferee. The Responsible Entity reserves the right to decline transfer requests in its absolute discretion including when a transfer is not completed correctly, is not stamped or if any one Unitholder would hold more than 20.0 per cent of Units. Tax implications could be associated with the transfer of Units. Unitholders should discuss their circumstances with their professional adviser before requesting a transfer.

6. How much is the distribution?

Forecast annualised distribution for the period 1 July 2016 to 30 June 2017 is forecast to be 9.25% p.a. Distributions are not guaranteed.

7. When are distributions paid?

Distributions are paid quarterly for the periods ending 31 March, 30 June, 30 September and 31 December.

8. How do I have payments paid directly to my bank or building society?

To receive your distribution payments by direct credit into your bank or financial institution account, or to change previously advised account details, you must provide written advice to the Unit Registry. In some cases, this advice can be provided online. Please refer to the Unit Registry for more details.

9. How do I change my investment details (e.g. name, address, method of payment, etc)?

To make changes to your investment details, written advice must be forwarded to the Unit Registry. In some cases, this advice can be provided online. Please refer to the Unit Registry for more details

10. How can I get another copy of my holding statement?

Send your written request for a duplicate statement to the Unit Registry. Please include the following information:

Full name of the registered Unitholder
Unitholder NumberName of the Issuer
The registered address of the Unitholder
Number of units held
Signature of the registered Unitholder

Please note that a charge may be levied for this service.

11. How can I give notification of my Tax File Number (TFN)?

Advice of TFNs can be given in writing to the Unit Registry or lodged online via the Unit Registry’s website. You can download a TFN notification form from the Unit Registry’s website. You may choose not to provide your TFN, however if you do not provide your TFN your distribution will be taxed at the highest marginal rate.

12. When will I receive updates on my investment?

If you invest directly into the Fund, and not via an IDPS, master trust or wrap account, the Responsible Entity will provide you with a:

– Confirmation Statement – specifying details relating to your investment or redemption; Regular Reporting – a quarterly report updating the Fund’s operations and updates on major activities about the Fund;

– Distribution Statement – a quarterly distribution statement detailing the distribution amount, payment date; Annual Report and Audited Accounts – an annual report and audited accounts for each 12 month period ending 30 June; and

– Tax Statement – an annual tax statement setting out the Fund’s tax position each year.

The regular reporting including the Annual Reports and Audited Accounts will be available on Folkestone’s website (www.folkestone.com.au/) and will be sent electronically to you if you have elected to receive it via email. Hard copies of these reports will not be sent out unless you have requested on the Application Form or in writing to us.

13. Where can I get an Annual Report for The Fund?

Go to the Reports and Publications section of this website where they are available in electronic format

14. How can I choose to receive or no longer receive the Annual Report?

This can be requested by writing to the Unit Registry.

15. How do I contact the Unit Registry?

The Unit Registry’s contact details are as follows:

Boardroom Pty Limited
GPO Box 3993, Sydney NSW 2001
Telephone: 1300 737 760
Facsimile: 1300 653 459

Email: enquiries@boardroomlimited.com.au
Website: http://www.boardroomlimited.au/

16. When will I receive my annual tax statement?

A tax statement for the tax year to 30 June is mailed to all Unitholders who have held an investment in the Fund during that financial year. The tax statements are typically mailed out six to eight weeks after 30 June each year.

The tax statement summarises the distributions paid during the year and includes information required to complete your annual tax return such as the tax advantaged component of the distribution.

17. Does the Fund hold an Annual General Meeting?

The Fund is not required to hold an Annual General Meeting unless it chooses to do so.

18. How do I contact the Manager?

Go to the Contact Us component of this web page or use the details below:

Folkestone Funds Management Limited
Level 14, 357 Collins Street, Melbourne, Vic 3000

Telephone: +61 3 9046 9946
Fax: +61 3 9046 9999

19. How can I log on to view information of my holding in the Fund?

Please visit: https://www.boardroomlimited.com.au – InvestorServe

20. Do I have to tell you when I change financial advisers?

You are not obliged to advise us when you change financial advisers, however to ensure that your adviser is able to obtain information regarding your investment, it is best that you do notify us.

A letter confirming your new adviser’s details, signed by all security holders should be sent to the Unit Registry.

21. How should I deal with a deceased estate?

To change the holding into the name of the estate a certified copy of the death certificate and will or probate (if required) will need to be sent to Investor Services to be noted on the register.

Please contact our Unit Registry for further information on administering a deceased estate.

22. Disclaimer

The information contained on this webpage is of a general nature only and does not constitute financial product advice. This webpage has been prepared without taking account of any person’s objectives, financial situation or needs. Because of that, each person should, before acting on this webpage, consider its appropriateness, having regard to their own objectives, financial situation and needs. You should consult a professional investment adviser before making any decision regarding a financial product. This is not an offer to invest in the Folkestone Real Estate Income Fund at Wollongong. Investment in the Fund can only be made by completing the application form for the Fund within the Fund’s Product Disclosure Statement (PDS). None of FLK, FFM or any of their respective associates, related entities or directors guarantee the performance of the Fund or the repayment of monies invested.

Registry Login

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