PROPERTY INVESTMENT PRINCIPLES
Australia China Investment Fund Pty Ltd (ACIF) has significant experience in the Australian property market, and provides investors with some unique investment opportunities with developers who have a proven track record.
As Investment Manager, ACIF, conducts due diligence on property investments, and always focuses on quality returns to the investor without compromising securities where possible.
Typical ACIF Fund features for property type investments include:
- Most investments will be secured debt, paying fixed interest income
- No investment will have a term longer than 4 years
- No single investment will normally exceed AUS $30,000,000 although the Investment Manager may vary this general term where it is considered appropriate
- Where practical, no single investment will comprise more than 50% of the relevant Fund
- Investments may only be made after developers receive government planning permission or where there is other security available
- Investments may be made only after a detailed investigation and approval by the Investment Committee
- Where possible additional security by way of corporate and/or personal guarantees will be sought
INFRASTRUCTURE INVESTMENT PRINCIPLES
ACIF has designed some special purpose infrastructure investments that aim to generate both attractive income and capital growth provisions. Such investments provide investors with some unique and exclusive investment opportunities and allow investors to choose from mezzanine finance loans, real estate, as well as direct infrastructure investments.
As for property investments, ACIF, conducts due diligence on infrastructure investments, and always focuses on quality returns to the investor without compromising securities where possible.
Typical ACIF Fund features for infrastructure type investments include:
- investments will be equity or debt-based
- the investment must have an Internal Rate of Return (IRR) over the life of the project in excess of 15% for equity or 9.5% paid quarterly for debt based investment types
- investments in equity are likely to have a term of 7 to 10 years, while investments in debt more typically have a term of between 2.5 to 4 years
- no single investment will exceed AUS $30,000,000 although the Investment Manager may vary this general term where it is considered appropriate
- investments may only be made once all planning and environmental permits are in place or where there is other security available
- investments may be made only after a detailed investigation and approval by the Investment Committee
INVESTMENT DECISION COMMITTEE
ACIF has established an Investment Decision Committee (Investment Committee) which if required will be supported by a team of, or reports from, independent consultants. Potential investment projects will be submitted to the Investment Committee after a detailed investigation, and project investments will be made when 80% of the members of the Investment Committee vote in favour of the investment.
FUNDS INVESTMENT ORIENTATION
Most of the investment opportunities for the ACIF Funds are expected to arise directly or indirectly within the Australian real estate industry or within the infrastructure sector of the Australian economy. These industries are attractive at the present time because of low interest rates, a strong economy, high population growth, and favourable government policy treatment.
All ACIF Funds are structured as unit trusts, and governed by, Australian Law. ACIF Funds have multiple unit classes which can relate to different sub-funds or certain investments. ACIF Funds will normally operate as open-ended funds and remain open to new investors.