Frequently Asked Questions
We have placed some of the most commonly asked questions and answers regarding land syndicates below. The advice is general in nature and potential investors should consult your Financial Advisor or Accountant before investing.
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 that is established in a Trust structure (managed investment scheme) as opposed to a Company structure.
Under the Corporations Act, this document is required to be lodged with the Australian Securities and Investment Commission (ASIC). The offer document may also contain independent expert reports, about the development, from economists, accountants, planners, engineers and valuers commissioned as part of the rigorous due diligence.
HOW LONG DO DEVELOPMENTS TAKE?
The life of a development varies from syndicate to syndicate depending on the size of the projects, 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.
WHAT SORT OF RETURNS CAN I EXPECT?
We target an internal rate of return of 21% however, returns vary according to a number of factors including the performance of the property market at the time of development. Wherever possible, a forecast of future returns is included in the offer document – however, this 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?
Progress Developments syndicates have a strong history of solid returns to investors and the Progress Developments management team have many years' successful experience in the property industry. However, 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 Progress Developments 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. However, it is worth noting that some syndicate offers have closed early because of the volume of subscriptions received.
WILL MY SUBSCRIPTION BE SCALED, AND WHAT DOES THAT MEAN?
Several Progress Developments syndicates have been extremely popular and we have received applications for more securities than are available. This can mean applications are 'scaled' and security holders are not allotted as many securities as they would have liked. If your application is scaled, the excess application funds will be returned to you.
WHAT IF I WANT TO SELL MY SECURITIES?
Because of the way in which our security holders realise their returns, our syndicates suit those security holders who have a medium to long-term horizon as the investment should be considered illiquid.