CorVal Industry House Trust
CorVal Industry House Trust (the “Trust”) is a simple to understand single property asset trust. The issuer of units in the Trust is CorVal Partners Limited (ACN 130 628 830, AFSL 326 118) in its capacity as responsible entity of the Trust (“CorVal”). Terms defined in the Product Disclosure Statement in relation to the offer of units (“Units”) in the Trust dated 19 October 2009 (“PDS”) have the same meanings on this site.
We are pleased to confirm the minimum subscription for the Trust of $37.13 million has been achieved and the first allotment of units occurred on 22 January 2010 with respect to applications received up to and including 15 January 2010.
In order to satisfy additional investor demand, we wish to advise the offer will remain open for all investors until 25 March 2010. A second and final allotment of units is expected to occur on, or around, 1 April 2010 (with respect to applications received during the extended period).
CorVal Industry House Trust is an opportunity to invest in a landmark Government tenanted building located in the Canberra CBD. Please find below a brief summary of the key features.
CorVal Industry House Trust has the following key features: 1
Asset | Single commercial property asset, through a simple unlisted structure |
NTA | Initial NTA OF $0.95 per unit for new investors subscribing for units under the PDS |
Forecast Distribution | 8.15% (annualised) for the three month period to 30 June 2010 and 8.25% for the financial year to 30 June 2011 |
Expected term of this investment | Expected to be between five and seven years unless the unitholders agree to sell the property earlier or agree to defer the sale for a period of up to an additional two years |
Tax Deferral | Forecast tax deferral of 35% for the three month period to 30 June 2010 and 40% for the financial year to 30 June 2011 |
Gearing | Gearing ratio at approximately 50% (10% below the maximum 60% gearing ratio allowed under the loan facility in respect of the property) |
Bank Debt | Secured until June 2012 with the base rate (excluding the line fee) capped at 5% per annum. |
Research | Lonsec has assigned a 'Recommended (Upper End)' rating |
Certain key information about CorVal Industry House Trust is outlined in this website. You must read the Product Disclosure Statement and Financial Services Guide for CorVal Industry House Trust in its entirety and, if you consider it appropriate, seek advice from a licensed financial advisor before making any investment decision. You must read the PDS (including the Financial Services Guide) and the PDS Update (dated 25 January 2010) in connection with the National Privacy Notification.
Key property features:
Landmark commercial office building located in the Canberra CBD close to major retail, hospitality and office developments |
Only building in Canberra to have a 5-star NABERS rating for energy and a 4.5-star rating for water. |
Majority (over 99%) leased to the AAA-rated Commonwealth Government of Australia (Government) |
Long-term weighted average lease expiry (WALE) of 12.3 years at 31 August 2009 |
Government rental income growing at 3% p.a. with a CPI based rent review in 2012 and 2017 |
Property purchased in June 2009 for $123m comparing favourably against independent valuation of $134m (31 August 2009) |
You might consider an investment in CorVal Industry House Trust if:
- you are attracted by the key features of CorVal Industry House Trust;
- you believe that now is a good time to make an investment with a return linked to a commercial property asset; and
- you understand and are comfortable with the risks associated with CorVal Industry House Trust described in the section headed “Risks” in section 6 of the PDS.
The above information is general information only. It does not take into account your individual objectives, financial situation or needs.
General Advice Warning
Any advice contained in this email has been prepared without taking into account your objectives, financial situation or needs. Before acting on any advice in this email, National Australia Bank Limited (ACN 004 044 937, AFSL 230686) (“NAB”) recommends that you consider whether it is appropriate for your circumstances having regard to your objectives, financial situation or needs. NAB recommends you consider the PDS in relation to the offer of Units in CorVal Industry House Trust dated 19 October 2009, which has been issued by the Company, and is available from NAB before making any decisions regarding the Offer. CorVal Partners Limited (ACN 130 628 830, AFSL 326118) is the product issuer.
1 The forecasts are subject to a number of assumptions and risks that are disclosed in the Product Disclosure Statement. There is no guarantee that any forecast result will be achieved.
Eligibility
Application for CorVal Industry House Trust is open to:
- Australian resident individuals;
- Australian trust entities, including Australian superannuation funds; and
- companies registered in Australia.
How to apply
Applications for units in the CorVal Industry house Trust may only be made by completing and returning the Application Form attached to the PDS. Detailed instructions on how to complete the Application Form are set out in the PDS. Payments must be in Australian currency and must be made by cheque drawn on an Australian bank.
You must read the PDS (including the Financial Services Guide) and the PDS Update (dated 25 January 2010) in connection with the National Privacy Notification.
To register for a PDS, call, toll free (Aust), 1800 652 669;
To request a hard copy of the PDS, provide us with your details, by clicking here
Further Information
To download a copy of the Lonsec Research, click here
To download a copy of the Lonsec Research Update, click here
This link to the Lonsec Research is provided as a convenience to you only. NAB has not reviewed and assumes no liability for its content. It is subject to the disclaimers contained herein.
The Lonsec Limited (Lonsec) ABN 56 061 751 102 rating (assigned August 2009) presented in this document is limited to “General Advice” and based solely on consideration of the investment merits of the financial product(s). It is not a recommendation to purchase, sell or hold the relevant product(s), and you should seek independent financial advice before investing in this product(s). The rating is subject to change without notice and Lonsec assumes no obligation to update this document following publication. Lonsec receives a fee from the fund manager for rating the product(s) using comprehensive and objective criteria.
You must read the PDS (including the Financial Services Guide) in connection with the National Privacy Notification.
To view a copy of the brochure click here
To download the National Privacy Notification, click here
Important Information
The information contained in this website is published by National Australia Bank Limited ABN
12 004 044 937(NAB). The NAB can be contacted by calling telephone banking on 13 10 12.
This website relates to the issue by CorVal Partners Limited (ACN 130 628 830, AFSL 326118) (“CorVal”) of units in the CorVal Industry House Trust (ARSN 139 802 038) (the ‘Trust). The offer is made by CorVal in its capacity as responsible entity of the Trust.
Please note that this website is based on information provided by CorVal about the offer as at 19 October 2009 and is subject to change. It is important that you consider the full details of the offer which are set out in the Product Disclosure Statement, (“PDS”) for the Trust, which are available from NAB before making any decision to invest in the Trust. Please call 1800 652 669 for a copy of the PDS for the Trust.
The products referred to in this website are only to be issued or offered to residents of Australia. The distribution of this letter outside Australia may be restricted by law and any failure to comply with such restrictions may constitute a violation of applicable laws.
No investment advice
The information in this website is of a general nature only and has been prepared for the purpose of providing general background information about the Trust and does not take into account the particular investment objectives, financial situation or needs of any person. It does not constitute a recommendation to invest in the Trust. Before making any investment in the Trust, you should ensure that you have read and understood the PDS in full, including the risks involved in investing the Trust, and you should obtain professional advice on whether the Trust is an appropriate investment for you having regard to your particular investment needs, objectives and financial circumstances.
Forward looking statements
Past performance is not a reliable indicator of future performance. Without limiting the foregoing, any forecast, budget, target, projection or other forward looking statement (“Projection”) is provided for information purposes only and comprises CorVal’s estimates of future prospects. No warranty or representation is given as to the accuracy or reasonableness of any such Projection or that any such Projection will actually be met. As the achievement of any such Projection is dependent on future events, the outcome of which cannot be assumed, the actual results achieved may vary materially from any Projection.
Role of NAB
NAB performs various roles in relation to the Trust and/or the offer of units in the Trust. NAB acts, in relation to the offer of Units in the Trust (“Offer”), as sole equity arranger (through distribution arrangements between NAB & CorVal). For further information in relation to this arrangement please see the PDS. For acting as sole equity arranger for the Offer, NAB will be paid an equity arranging fee of 5% (plus GST) of the amount of equity raised under the Offer (payable out of the Trust assets). NAB may act if necessary to protect its interests ahead of investors in the Trust and other parties. In acting in its various capacities, NAB will only have the duties and responsibilities expressly agreed by it in the relevant capacity and will not, by virtue of acting in any other capacity, be deemed to hold any differing standard of care.
NAB (out if its equity arranging fee) may pay commission to your financial adviser for recommending you invest in the Trust. Such payments will generally be equivalent to 3% (plus GST) of the total funds you invest (for example, $300 plus GST for an investment of $10,000).
NAB staff members distributing the offer may receive commissions out of fees paid to NAB. Staff members may also be entitled to receive additional monetary (such as annual bonuses) or non-monetary benefits and/or rewards resulting from participation in programs conducted by NAB. Whether staff members receive any such benefits and rewards depends on a number of performance related factors including the level of remuneration generated for NAB from sales of products as a consequence of the staff member’s advice. It is not possible to determine at any given time whether a staff member will receive such benefits or rewards or to quantify them.
Neither NAB, nor any other member of the National Australia Bank Group or their respective associates or directors guarantee the performance of any investment or any particular rate of return referred to in this letter. The investment described in this letter is not an investment in, a deposit with or other liability of NAB, or any other member of the National Australia Bank Group and such investment, if made, will be subject to investment risk, including possible delays in repayments and loss of income or capital invested. Neither NAB, nor any other member of National Australia Bank Group in any way stands behind the capital value nor does it guarantee the performance of the Trust or the performance of the potential investment or the underlying assets of the Trust. NAB also does not provide a guarantee or assurance in respect of CorVal or any entity associated with CorVal.
Neither NAB, any member of the NAB Group, nor any of their respective directors, officers or associates, makes any representation or warranty as to the accuracy, reasonableness or completeness of any statement on this website including, without limitation, any budget, target, projection or other forward looking statement (projection), or that any projections will be met. Actual results may vary materially from the projection. To the maximum extent permitted by law, NAB and each member of the NAB Group expressly disclaim all or any liability which may arise out of the provision to, or use by, any person of the information contained on this website.
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NAB has adopted the revised Code of Banking Practice 2003. For details of the Code contact NAB on 13 22 65 and select the option to speak to a Customer Service Representative. Or visit us at www.nab.com.au. For more information about NAB’s dispute resolution processes click on Dispute Resolution.
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