The law normally requires people who offer financial products to give information to investors before they invest. This requires those offering financial products to have disclosed information that is important for investors to make an informed decision. The usual rules do not apply to this offer if you are a person who comes within Schedule 1, clause 3(2)(a)-(c) or 3(3)(a)-(b)(ii) (inclusive) of the Financial Markets Conduct Act 2013. This includes where the amount invested upfront by the investor (plus any other investments the Investor has already made in the financial products) is $750,000 or more.
If you fall within Schedule 1, Clause 3 of the FMCA, as a result of this exclusion, you may not receive a complete and balanced set of information. You will also have fewer other legal protections for this investment. Investments of this kind are not suitable for retail investors. Ask questions, read all documents carefully, and seek independent financial advice before committing yourself.
The Erskine Owen Growth Fund aims to deliver above average returns of 20% + p.a. by acquiring properties, whether land, residential or commercial, with strong growth potential, and working to realise that potential through value-add activity and/or strategic hold +over the short to medium term.
Erskine Owen can point to a track record of adding significant value to properties, whether that be through judicial buy and hold, or active value add initiatives. The track record has been achieved through the collective experience and expertise of the Erskine Owen team and its advisors. In our opinion, investors can therefore take confidence from this when:
- committing to the fund before the first property has yet to be identified
- where the fund holds property, but gains are yet to be achieved or realised
- or where future properties are yet to be identified
The Statement of Investment Policies and Objectives (SIPO), combined with the Erskine Owen investment committee ensure that while the location and type of property targeted is relatively broad, there is laser like focus on value-add potential. The asset management and finance teams of Erskine Owen work closely together to carefully analyse potential property acquisitions before making proposals to the investment committee. The investment committee is comprised of a member of the Erskine Owen board of advisors, both directors and the heads of finance and asset management. We welcome you to meet the Erskine Owen team on site or via teleconference/ phone.
Like all investments, there is risk to this opportunity. Risk mitigation and return maximisation is pursued through the experience of Erskine Owen and its processes. Regardless, investors should carefully read the risks section of this document and seek independent financial and legal advice.
There are no regular returns forecast for this fund, given returns are more likely to be realised over the medium to long term. When a gain of at least 20% is achieved, the General Partner (GP) will generally look to realise that gain, unless there is a very strong case for a longer hold or further value add activity. The GP anticipates that distributions may be declared from the proceeds of the sale of each Property acquired by the Fund. Where distributions are declared, investors may be provided the opportunity to re-invest their returns back into the Fund (at the then-current Unit value), or to receive their returns in cash.
The lifetime of 10 years has been set in order to give investors certainty as to time frame. Though it should be noted that duration of the fund can be extended by 3 years.
The minimum investment amount is $250k, with additional investment in lots of $50k.
