When an investor invests into one of our developments, they are investing into a Unit Trust that has been designed purposefully for this development. Each investor in the trust receives unit shares proportional to the amount of capital they invest. A unit is a piece of property that entitles the unit holder to a specified portion of the income and capital of the Trust. The trustee then uses the investing funds within the trust to undertake the development on the behalf of the unit holders.
This is the largest and safest protection offered to investors by having a Unit Trust structure where all the investor’s capital are secured against the land that is acquired by the Unit Trust. The Unit Trust owns the land, and the unit holders are entitled to a fraction of the trust’s assets.
Another protection we offer is that the trustee owes a duty of care to unit holders and beneficiaries within the Unit Trust and the unit deed mandates that the trustee acts in the best interests of the unit holders and beneficiaries at all times. If a trustee fails to do so, they can be held personally liable with civil and criminal penalties depending on the severity of their actions.
Nonetheless, no investment is entirely without risk, but this legal structure minimises that risk to a large extent by ensuring that the investor’s capital is secured against a tangible asset and that the trustee is acting in the best interests of investors at all times.
We provide a higher level of investment returns to our clients by structuring our deal into a larger and more cost effective project to secure the targeted performance on our development projects.