For Accredited Investors Only
Investment Details
SDAX launched an exclusive opportunity to invest in a Short Term Fixed Income Facility, of which the proceeds will be used to finance an existing participation in an AUD 36 million mezzanine loan notes issuance.
About the Issuer and Loan Purpose
Straits Real Estate Pte. Ltd. (“SRE”) is a wholly-owned subsidiary of The Straits Trading Company Limited.
The proceeds will be used to finance an existing participation in a AUD 36 million mezzanine loan notes issuance (“Mezzanine Loan”). The Mezzanine Loan is part of the financing package obtained for the development of Aspire Melbourne, a AUD 440 million luxury residential development located in the heart of Melbourne, Australia (the “Property”).
Investment Highlights
- Exclusive access to institutional quality real estate investment: Given the indivisible nature of individual real estate, similar quality investments are usually only available to institutional investors. The minimum investment amount is significantly smaller than typical real estate investments.
- Opportunity to invest alongside industry experts: The investment in the Mezzanine Loan was assessed by SRE, whose core expertise and business activity are in real estate investments. This opportunity allows Members to “co-invest” with a large institutional real estate player and rely on the due diligence conducted by professionals. SRE continues to remain invested in more than 90% of the Mezzanine Loan through its wholly owned subsidiary.
- Experienced team: The Developer, ICD Property (“ICD”) is an established developer in Melbourne and Sydney, It was founded in 2009 in Melbourne by Michael Mai. ICD specialises in luxury high-rise towers in city centres, mid-size residential developments and land subdivisions in high growth neighbourhoods, including EQ Tower in Melbourne that was sold out and completed ahead of schedule. For this Property, ICD has lined up an experienced team comprising of Hickory Group (builder), Elenberg Fraser (architect), Sinclair Brook (project manager) and consultants who have demonstrated track record in delivering high-rise residential of this scale.
- FX risk for investors have been hedged: Members invest in SGD, instead of AUD. The investment return is not subjected to foreign exchange volatility
* Callable on each Interest Payment Date starting from the 19th Interest Payment Date
Product Suitability
What would you gain or lose in different scenarios?
- Best Case Scenario
- Investor gets to make a return based on the agreed interest rate offered in addition to the investment committed to participate in the Term Loan Facility.
- Worse Case Scenario
- In the event of default, recovery from the outstanding loan amount will be by way of liquidating assets that are being pledged as security for the Term Loan Facility.
Investor Profile for this issuance should be AGGRESSIVE.
The nature of the investment is BALANCE.
Risk & Reward involved with the investment AGGRESSIVE.