(date)
name and address
Dear I refer to my discussions with you concerning an investment in property, in particular, a syndication, which would be suitable for your needs and requirements of income. Legislation requires that the adviser must “know the client” before making any recommendations. There is, however, provision that in certain circumstances an adviser may supply limited advice. The limited advice in this proposal addresses your specific requirement for investing in property for a period of 6 years. Details are as follows:
Brand Smart Property Syndication The syndicate is issuing 2,055 units at $10,000 per unit to fund the acquisition of the Brand Smart Centre, a premium Factory Outlet Mall located in Whitehorse Road, Nunawading, Melbourne, Victoria. There are 47 retail tenancies in the building plus 2 cafes and a kiosk totaling 50 tenancies in all. Tenants include national and international retailers such as Oroton, Polo Ralph Lauren, Calvin Klein, Jag, Colorado, Bendon, Espirit etc. All leases are based on a base rent plus a percentage above a breakeven point. The majority of tenants have lease terms of 3-5 years and approximately 50% have options of a similar duration. The syndicate is to be managed by Arc Funds Management Ltd, a company 70% owned by Professional Investment Holding the parent company of Professional Investment Services who has approximately $5 billion funds under advice. The term of the syndicate is six years, however the term can be extended if the Manager and the unit holders agree by Special Resolution to extend the term for further two years should the Manager consider that this would optimize the sale price.
STATEMENT OF DISCLOSURE Professional Investment Services, its directors, officers and/or agents may have an interest as defined in Section 849 of the Corporations Law in the securities recommended in that the companies or its related individuals may hold relevant interest in or receive brokerage and marketing support from such securities. Professional Management. Investment Holdings Ltd has a 70% holding in ARC Funds
DISCLAIMER In accordance with Section 851 of the Corporations Law, this report is prepared on the basis of information, which you have provided. If you believe that we have misinterpreted this information, or that some relevant information has been overlooked, it is your responsibility to bring this to our attention before proceeding with this proposal. This company and/or its associated companies accept no responsibility if the information you have supplied is inaccurate or incorrect. Furthermore the company and/or its associated companies does not warrant or guarantee the financial performance or stability or security of any investment trust or investment company herein recommended. This report is prepared solely for the use of the client to whom it is addressed and this company and/or its associated companies do not accept any liability whatsoever to third parties. Whilst every effort has been made to include relevant tax and social security considerations, you are advised to discuss your annual tax liability and the tax and social security implications of this plan with your tax adviser as the estimates contained herein are intended as a guide only. All representations made, facts presented and opinions expressed by Professional Investment Services are given in good faith. Professional Investment Services and its associated companies shall not be liable for damages or in any other way for misrepresentations, errors of fact and opinions except in any case where liability cannot be excluded pursuant to any law. TIME LIMITATION As economic and market conditions are constantly changing the recommendations in this report are only valid for [sixty (60)] days from the date of presentation. To ensure that this plan remains suitable to your needs we recommend a review and if necessary a revised plan be prepared after this time limitation has elapsed. DISCLOSURE OF COMMISSION Should you agree with our recommendations and proceed with implementation of this specific investment Professional Investment Services as a licensed dealer in securities is entitled to receive a commission of 5% (inc GST). No of Units: $10,000 per unit Total Investment: Brokerage:
PROSPECTUS AND RESEARCH REPORTS Please ensure you read the prospectuses and research reports in relation to each of the recommended investments before proceeding.
(Authorised Dealer’s Representative)
I, the undersigned, hereby acknowledge I have read or undertaken to read the Prospectus dated the 26thh July 2002 and I am aware that this is an investment of at least 6 years.
Client Signature: ………………………………..
Client Signature: ………………………………..