** The information provided on this webpage is only a summary of the offer and may not contain all the information needed to determine if this offer is right for you. You should read the Prospectus in its entirety which can be downloaded in the Downloads section below as well as on the Project application page once you press the APPLY HERE button.
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EXPLAINER VIDEO
Product Summary
Summary
Monthly Baron is a product that allows investment from $1000 for a period 18 months with interest that is distributed monthly and principal is paid back at the end of the investment term. The investment objective is to generate consistent returns for investors through investing in a range of Real Estate related developments.
We aim to provide a 7% annual return with monthly distributions.
Investors in this offer holding Redeemable Preference shares will receive their entire expected Dividend and Principal before Ordinary shareholders receive any payments. In the case where the money is being used for real estate development, we will only invest in those funds which do not exceed 70% Loan to Valuation Ratio (LVR). And finally we will only invest in those funds which offer a liquidity event no more than 18 months after investing.
Security
A first mortgage security on the real estate assets against which the money is being lent.
Investor Distribution
Monthly distributions capped to a 7% annual return.
Investment Profile
Risks
Please refer to the prospectus for a detailed overview of the Specific and General risks.
7.1.1. LIQUIDITY
The Redeemable Preference Shares will not be listed on any stock exchange. As such, there is no secondary market to buy or sell Redeemable Preference Shares. Any investor who participates in this offer should carefully consider how this lack of liquidity during the expected term of 18 months will impact their investment objectives. 7.1.2. THE COMPANY MAY REDEEM AN INVESTMENT BY ISSUING A CALL AT ANY TIME
The Company plans to invest all the monies raised via this offer into a number of underlying funds as described in the Investment Mandate earlier. Some of these funds have a liquidity event every 3 months in which they give its investors the opportunity to exit by getting paid the principal and return due till date. The Company plans to pass this on to any of its investors who may be interested in achieving a liquidity by exiting before the expected term of 18 months. In case any of the investors are interested in exiting, then the Company will exercise the CALL option on their Redeemable Preference Shares. Investors should carefully consider the scenario where the money which was supposed to be invested for 18 months gets paid out sooner than expected and is unable to earn the expected return for the remainder of the term.
7.1.3. SCENARIOS WHERE DIVIDEND RETURN MAY BE REDUCED The Company is completely reliant on the performance of the funds which it invests in to deliver the target return to its investors who participate in this offer. If the funds which the Company invests in do not deliver the expected return then the ability of the Company to deliver the desired return will be adversely impacted.This may effectively lead to the redeemable preference shares to be on issue without the call being exercised beyond 18 months. If the Company determines that it is not possible to recover an investment loss by purely extending the term it may have to issue a CALL for repurchase of the redeemable preference shares for a value lower than what they were issued for.
7.1.5. REDEEMABLE PREFERENCE SHARES NOT GUARANTEED The Redeemable Preference Shares are not bank deposits. The repayment of the money you have invested or any particular rate of return is not guaranteed by the Company or its Directors. You may also lose some or all of your Principal Investment Amount. The Company will only be able to make dividend payments to Shareholders if it receives positive income from operations.
Target Returns
7% Annually - distributed monthly
Return Paid As
Monthly dividends (unfranked), to the investors nominated bank account.
Taxation
The Australian taxation laws are complex and hence the comments provided below are necessarily general in nature. Investors should be aware that they may be affected by changes in taxation laws or the interpretation of these laws as well as changes in the administrative practices of the revenue authorities. Investors should obtain and rely upon their own taxation advice.
TAXATION TREATMENT FOR REDEEMABLE PREFERENCE SHAREHOLDERS DIVIDENDS Dividends received by Ordinary Shareholders will be included in Shareholder’s assessable income. The income received will be treated as income on the basis that the Redeemable Preference Shares are debt interests for income tax purposes.
TAXATION TREATMENT OF REDEMPTION OR REPURCHASE VIA CALL Any amount received on redemption of the Redeemable Preference Shares that exceeds the Principal Investment Amount will be treated in a similar manner to an unfranked dividend and will be included in the Redeemable Preference Shareholder’s assessable income.
Product Profile
Duration
18 Months
Current Status
OPEN FOR INVESTMENT
Risk
All investments are subject to risk and there are a number of risks which can impact on the performance of your investment, should they occur. Investments may not perform as expected resulting in a loss of capital or income or a failure to meet your investment objectives.
Before you decide to invest, you should give consideration to the risk factors, as well as other information contained in the Prospectus.
How To Invest
| Bank | Westpac |
| Account Name | Baron Monthly Income Ltd |
| BSB | 033157 |
| Account No | 545982 |
| Reference | BMI |
* Note that this is a No Obligation Expression of interest, you get to review the Prospectus before making any decisions
Project FAQs
WHAT TYPE OF REAL ESTATE RELATED OPPORTUNITIES WILL WE INVEST IN?
Monthly Baron will operate in a fund of funds model. We will only invest in existing contributory or pooled mortgage funds that invest by taking a first mortgage security on the real estate assets against which the money is being lent.
WHEN DO I GET PAID MY MONTHLY INCOME?
The expected dividend date will be the 15th business day of each month.
ARE MY DIVIDENDS FRANKED?
No.
CAN I INVEST MORE THAN ONCE?
Yes, you can make multiple investments. Each will have a different start and end date for redemption purposes.
WHAT IS THE MONTHLY CUT OFF DATE FOR APPLICATIONS?
5pm on the 25th day of each month.