Disclaimer
By reading this, I acknowledge that:
- only factual information is contained on this website and nothing is intended to be a recommendation or statement of opinion which influences me to make an investment decision;
- the information contained on this website is not financial product advice; and
- I will read any relevant Offer Document and obtain appropriate advice in relation to my investment objectives, financial situation and particular needs before making any financial decision.
How investing in a land syndicate works
Peet pioneered the land syndication model in Australia, and we are one of the largest and most successful residential land syndicators in the country.
Share in the success of community development by joining other small and large investors who participate in the ownership and development of land earmarked for residential development.
The syndication process works like this:
- Peet identifies a strategic parcel of land and assesses the opportunity.
- Peet negotiates and purchases the land.
- Peet sets up the syndicate company or trust (the syndicate) to develop the land.
- Independent experts (lawyers, engineers, economists, valuers, planners and accountants) undertake rigorous due diligence on the land.
- An offer is made to syndicate investors through a prospectus or product disclosure statement (referred to as an 'offer document').
- Investors registered with Peet receive the offer document, complete the application if they wish to invest and then receive their investment allocation.
- Peet assigns an experienced project development team.
- Required planning and development approvals are sought and obtained.
- Stage one construction commences and the first lots are released for sale.
- Construction and sale of lots continue in staged releases throughout the life of the project.
- Syndicate investors are informed on the development progress through regular updates.
- As company profits emerge, dividends/distributions are paid to syndicate investors and capital is also returned progressively, as funds and taxation legislation permit.
- The development is completed, the syndicate is wound up and final dividends and returns of capital are made to syndicate securityholders.
Syndicate Returns
Peet land syndicates have a solid record of performance, however, your returns will vary according to the performance of each development, which can be affected by a number of factors such as property market conditions at the time of development.
We endeavour to provide a forecast of future returns to you through our investment offer documents – however, this is not always possible for some longer-term projects where the development start date is not certain. Forecasts are accompanied by the assumptions underpinning those forecasts as well as various risk factors that could have a material impact on the forecasts.
If we are unable to provide a forecast, prospective investors should refer to the benefits and risks associated with the project detailed in the offer document.
Peet syndicate securityholders will start to realise a return on their investments once profits emerge from the project. These profits are progressively returned to our securityholders in the form of distributions or dividends and continue until the final lots are settled and the syndicate is wound up. In the same way, capital is also returned progressively, as working capital requirements, taxation and legislation permits.
FAQs
We have placed some of the most commonly asked questions and answers regarding land syndicates below.
- Shares and units are collectively referred to as securities throughout this website
- Product disclosure statements and prospectuses are both referred to as offer documents throughout this website.
What is an offer document?
A prospectus or product disclosure statement is an offer document which details the development, the benefits and risks of the offer of securities in the syndicate.
A product disclosure statement is a document similar to a prospectus which is issued for a Peet Syndicate that is established in a Trust structure (managed investment scheme) as opposed to a Company structure.
Offer documents may contain independent expert reports, about the development, from economists, accountants, planners, engineers and valuers commissioned as part of the due diligence. View a sample offer document for a previous investment that is now closed.
Where are Peet's syndicate landholdings located?
Peet’s current retail syndicates have land holdings in Western Australia and Victoria.
How long do developments take?
The life of a development project varies from syndicate to syndicate depending on the size of the land holding, the process for gaining approvals to develop, the market and a range of other factors. These factors are fully detailed in the offer document for each syndicate.
How often are offers available in a Peet syndicate?
This will depend on Peet securing properties that are suitable for syndication.
What sort of returns can I expect?
Returns vary according to a number of factors including the performance of the property market at the time of development.
Wherever possible, Peet provides a forecast of future returns in the offer document – this forecast will be based on a number of assumptions that will be outline in the relevant offer document. It is not always possible in some longer-term projects where the development start date is not certain. If a forecast cannot be provided, prospective investors will be able to refer to the benefits and risks associated with the project detailed in the offer document.
Are there any risks?
There are risks associated with any land development, and each offer document details anticipated risk factors for that project. Please read the offer document carefully. Before deciding to invest, we encourage you to consult your financial advisor to assess whether an investment in a Peet Syndicate is appropriate for you.
What is the minimum amount I can invest?
$5,000 is generally the minimum.
Do I have to pay stamp duty or GST on my investment?
No.
Can I invest in a Peet syndicate for my personal super fund?
There are many privately managed super funds that invest in Peet syndicates. However, before deciding to invest, we encourage you to consult your financial advisor to assess whether an investment in a Peet syndicate is appropriate for you.
How long is a syndicate open to investors?
The closing date for each syndicate offer is included in the offer document.
What does the term 'interest on subscription monies' mean as it appears in the offer document?
In the time between receiving your subscription funds and allotting you securities in the syndicate, we may pay interest on your funds.
Will my subscription be scaled, and what does that mean?
Where a Peet syndicate is popular and we have received applications for more securities than are available, applications are 'scaled' and security holders are not allotted as many securities as they may have applied for.
If your application is scaled, the excess application funds will be returned to you.
What if I want to sell my securities?
Each Peet syndicate is wound up at the completion of its project.
However, if you would like to sell your securities in a syndicate before the end of a project, Peet will put you in contact with potential buyers and you may then negotiate directly with them to dispose of your securities.