Services and Fees

Services and Fees 2017-12-04T16:58:20+00:00

FUND I

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FUND II

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FUND III

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FSREC FUND I FEES

ONGOING COSTS OF THE FUND

Responsible Entity Fee

Walsh & Company Investment Limited, as Responsible Entity of the Fund, is responsible for establishing the Fund’s compliance plan and procedures and monitoring against regulatory and legislative requirements, the issuance of disclosure documents, the appointment and monitoring of external service providers to the Fund and overall administration of the Fund.

The Responsible Entity Fee is 0.08% per annum (exclusive of GST), calculated on the gross asset value of the Fund and payable monthly in advance.

Fund Manager Fee

Walsh & Company Asset Management Pty Limited, as Fund Manager of the Fund, is responsible for the daily administration of the Fund, which includes providing or procuring the provision of services including company secretarial functions, maintaining the management and statutory accounts, administrative support services and providing investor relations services to the Fund.

The Fund Manager Fee is 0.69% per annum (exclusive of GST), calculated on the gross asset value of the Fund and payable monthly in arrears.

ONGOING COSTS OF THE TRUST

Trustee Fee

Walsh & Company Investment Services Pty Limited in its capacity as Trustee of Australian Property Opportunities Trust, a wholly owned subsidiary of the Fund, is responsible for overall management of the Trust and its assets.

The Trustee Fee is 0.10% per annum (exclusive of GST), calculated on the gross asset value of the Trust, payable monthly.

Property Manager Fee

Fort Street Real Estate Capital Pty Limited acts as Property Manager of the Trust and is responsible for managing and maintaining the property portfolio of the Trust, optimising tenancy profile and maximising returns.

The Property Manager Fee is 3.00% per annum (exclusive of GST), payable monthly calculated on the gross income value of the Trust.

Acquisition Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, is responsible for sourcing, undertaking due diligence investigations and recommending property acquisitions to the Trustee. The Investment Manager receives an Acquisition Fee of 1.25% (exclusive of GST) on the purchase price (excluding acquisition costs) of assets acquired by the Trust. This fee is included in the acquisition cost of investment properties. The Acquisition Fee is payable to the Investment Manager upon transfer of title to the Trust.

Disposal Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, acts as an advisor on the sale of underlying Trust assets. The Investment Manager receives a Disposal Fee of 1.00% (exclusive of GST) of the net proceeds of the sale of any property of the Trust, the sale of any units in the Trust, the redemption of any units in the Trust by the transfer of assets other than cash, or the distribution in specie of the capital of the Trust (but not payable unless the net proceeds exceed the aggregate of the acquisition costs and capital costs for the relevant asset less, in the case of units in the Trust, any capital distributed in respect of that asset). The Disposal Fee is payable to the Investment Manager upon transfer of title from the Trust.

Performance Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, is entitled for 20% (exclusive of GST) of the portion of the outperformance of the Trust over an IRR of 10% (Hurdle Rate) to the Fund.

The performance fee will only be paid following the Fund’s actual receipt of all invested capital in the Trust and an investment return equal to the Hurdle Rate, through distribution of income and capital from the Trust.

OTHER EXPENSES

The fees and costs associated with the administration of the Fund and the Trust, which are to be reimbursed to the Responsible Entity by the Fund and to the Trustee by the Trust including registry fees, tax, custodian, accounting and audit fees. These expenses are payable directly out of the assets of the Fund or the Trust.

FSREC FUND II FEES

ONGOING COSTS OF THE FUND

Responsible Entity Fee

Walsh & Company Investment Limited, as Responsible Entity of the Fund, is responsible for establishing the Fund’s compliance plan and procedures and monitoring against regulatory and legislative requirements, the issuance of disclosure documents, the appointment and monitoring of external service providers to the Fund and overall administration of the Fund.

The Responsible Entity Fee is 0.08% per annum (exclusive of GST), calculated on the gross asset value of the Fund and payable monthly in advance.

Fund Manager Fee

Walsh & Company Asset Management Pty Limited, as Fund Manager of the Fund, is responsible for the daily administration of the Fund, which includes providing or procuring the provision of services including company secretarial functions, maintaining the management and statutory accounts, administrative support services and providing investor relations services to the Fund.

The Fund Manager Fee is 0.69% per annum (exclusive of GST), calculated on the gross asset value of the Fund and payable monthly in arrears.

ONGOING COSTS OF THE TRUST

Trustee Fee

Walsh & Company Investment Services Pty Limited in its capacity as Trustee of Australian Property Opportunities Trust, a wholly owned subsidiary of the Fund, is responsible for overall management of the Trust and its assets.

The Trustee Fee is 0.10% per annum (exclusive of GST), calculated on the gross asset value of the Trust, payable monthly.

Property Manager Fee

Fort Street Real Estate Capital Pty Limited acts as Property Manager of the Trust and is responsible for managing and maintaining the property portfolio of the Trust, optimising tenancy profile and maximising returns.

The Property Manager Fee is 3.00% per annum (exclusive of GST), payable monthly calculated on the gross income value of the Trust.

Acquisition Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, is responsible for sourcing, undertaking due diligence investigations and recommending property acquisitions to the Trustee. The Investment Manager receives an Acquisition Fee of 1.25% (exclusive of GST) on the purchase price (excluding acquisition costs) of assets acquired by the Trust. This fee is included in the acquisition cost of investment properties. The Acquisition Fee is payable to the Investment Manager upon transfer of title to the Trust.

Disposal Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, acts as an advisor on the sale of underlying Trust assets. The Investment Manager receives a Disposal Fee of 1.00% (exclusive of GST) of the net proceeds of the sale of any property of the Trust, the sale of any units in the Trust, the redemption of any units in the Trust by the transfer of assets other than cash, or the distribution in specie of the capital of the Trust (but not payable unless the net proceeds exceed the aggregate of the acquisition costs and capital costs for the relevant asset less, in the case of units in the Trust, any capital distributed in respect of that asset). The Disposal Fee is payable to the Investment Manager upon transfer of title from the Trust.

Performance Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, is entitled for 20% (exclusive of GST) of the portion of the outperformance of the Trust over an IRR of 10% (Hurdle Rate) to the Fund.

The performance fee will only be paid following the Fund’s actual receipt of all invested capital in the Trust and an investment return equal to the Hurdle Rate, through distribution of income and capital from the Trust.

OTHER EXPENSES

The fees and costs associated with the administration of the Fund and the Trust, which are to be reimbursed to the Responsible Entity by the Fund and to the Trustee by the Trust including registry fees, tax, custodian, accounting and audit fees. These expenses are payable directly out of the assets of the Fund or the Trust.

FSREC FUND III FEES

ONGOING COSTS OF THE FUND

Responsible Entity Fee

Walsh & Company Investment Limited, as Responsible Entity of the Fund, is responsible for establishing the Fund’s compliance plan and procedures and monitoring against regulatory and legislative requirements, the issuance of disclosure documents, the appointment and monitoring of external service providers to the Fund and overall administration of the Fund.

The Responsible Entity Fee is 0.08% per annum (exclusive of GST), calculated on the gross asset value of the Fund and payable monthly.

ONGOING COSTS OF THE TRUST

Trustee Fee

Walsh & Company Asset Management Pty Limited in its capacity as Trustee of Australian Property Opportunities Trust III, a wholly owned subsidiary of the Fund, is responsible for overall management of the Trust and its assets.

The Trustee Fee is 0.10% per annum (exclusive of GST), calculated on the gross asset value of the Trust Group (but excluding the value of any inter-group balances), payable monthly.

Investment Management Fee

Fort Street Real Estate Capital Pty Limited, as Investment Manager of the Trust, is responsible for sourcing, assessing and approving or directing property acquisitions and disposals to the Trustee.

The Investment Management Fee is 0.69% per annum (exclusive of GST), calculated on the gross asset value of the Fund and the Trust Group (but excluding the value of any inter-group balances).

Property Manager Fee

Fort Street Real Estate Capital Pty Limited acts as Property Manager of the Trust and is responsible for managing and maintaining the property portfolio of the Trust, optimising tenancy profile and maximising returns.

The Property Manager Fee is 3.00% per annum (exclusive of GST), payable monthly, calculated on the aggregate gross operating income of the Trust and any Investment Entity each month (but excluding the value of any inter-group income).

Acquisition Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, is responsible for sourcing, undertaking due diligence investigations and recommending property acquisitions to the Trustee. The Investment Manager receives an Acquisition Fee of 1.25% (exclusive of GST) on the purchase price of property investments acquired by the Trust. The Acquisition Fee is payable to the Investment Manager upon transfer of title to the Trust.

Disposal Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, acts as an advisor on the sale of underlying Trust assets. The Investment Manager receives a Disposal Fee of 1.00% (exclusive of GST) of the net proceeds of the sale of any property investment of the Trust (for example, the sale or redemption of Trust units in the Trust. This fee will not be payable unless the net proceeds exceed the aggregate of the relevant purchase price, acquisition costs and all additional material capital expenditure not included in the purchase price (excluding capital expenditure relating to maintenance and tenant incentives), and in the case of units in the Trust, any capital distributed in respect of that asset). The Disposal Fee is payable to the Investment Manager upon transfer of title from the Trust.

Performance Fee

Fort Street Real Estate Capital Pty Limited, in its capacity as Investment Manager, is entitled for 20.0% (exclusive of GST) of the return achieved above the total of the capital contributed to the Trust by Trust unitholders and the Hurdle Return. The ‘Hurdle Return’ is an amount equal to a cumulative non-compounded pre-tax return of 8% per annum on the total of all capital contributed to the Trust and not yet returned to Trust unitholders. The performance fee is calculated and charged at the Trust level only.

The performance fee will only be paid following the Trust unitholders’ actual receipt of an amount equal to the total of all contributed capital and the Hurdle Return, through distribution of income and capital from the Trust.

OTHER EXPENSES

The fees and costs associated with the administration of the Fund and the Trust are estimated to be 0.30% (exclusive of GST) of the gross asset value of the Fund, which are to be reimbursed to the Responsible Entity by the Fund and to the Trustee by the Trust including registry fees, tax, custodian, accounting and audit fees. These expenses are payable directly out of the assets of the Fund or the Trust (as applicable).