RG 46 Disclosures

In September 2008, the Australian Securities and Investments Commission (ASIC) released Regulatory Guide 46 – Unlisted property schemes – improving disclosure for retail investors (RG 46) setting out eight principles for improved disclosure to help retail investors understand the risks associated with investing in unlisted property funds and to decide whether such investments are suitable for them.

The Guide covers the following disclosure requirements:

Disclosure Principle 1 – Gearing Ratio

The Trust currently has no borrowings.

Disclosure Principle 2 – Interest Cover

The Trust currently has no borrowings.

Disclosure Principle 3 – Borrowing

The Trust’s $66.5m loan facility with the Commonwealth Bank of Australia was fully repaid on 4th October 2013.

Disclosure Principle 4 – Portfolio Diversification

The Trust’s sole asset at 10 Binara Street, Canberra was sold on 4th October 2013.

Disclosure Principle 5 – Valuation Policy

Pursuant to the constitution of the Trust, the Responsible Entity may determine the valuation methods and policies it will apply from time to time in determining the net asset value of the Trust. Independent valuations are performed as at 30 June each year by registered valuers who are appropriately qualified to undertake the valuation, based on the type and locality of the property being valued. All independent valuations comply with relevant industry standard and codes.

Disclosure Principle 6 – Related Party Transactions

The Responsible Entity has established a policy for proposed or potential related party transactions, to ensure that any actual or potential conflicts of interest are identified and appropriately dealt with. Any potential transactions with related parties go through an assessment process, and must be approved unanimously by the Board. No related party transactions can be approved or entered into unless they are strictly on arms-length, commercial terms (unless otherwise approved by Unitholders , with any possible conflicts of interest having been fully disclosed). Any related party transactions are then monitored to ensure they are carried-out as approved and continue to be on arms-length terms.

The following related party fees were paid or payable to the Responsible Entity during the year ended 30 June 2014:

Fees to Responsible EntityYear ended 30 June 2014
Management fees$202,274
Sale fee$3,034,000
Performance fee$737,068

Disclosure Principle 7 – Distributions

Year ended 30 June 2014

Distribution rate (cpu)
Quarter ended 30 September 20132.1425
Distribution of income and capital gains – Tranche 150.8300
Redemption of 92.93% of units53.3900
Distribution of income and capital gains – Tranche 20.9800
Redemption of 4.8% of units2.3100
109.6525

Year ended 30 June 2013

Quarter endedDistribution rate (cpu)
30 September 20122.1425
31 December 20122.1425
31 March 20132.0959
30 June 20132.1192
8.5000

Year ended 30 June 2012

Quarter endedDistribution rate (cpu)
30 September 20112.0795
31 December 20112.0795
31 March 20122.0568
30 June 20122.0342
8.2500

Year ended 30 June 2011

Quarter endedDistribution rate (cpu)
30 September 20102.0795
31 December 20102.0795
31 March 20112.0342
30 June 20112.0568
8.2500

Year ended 30 June 2010

Quarter endedDistribution rate (cpu)
31 March 2010(1)2.0096
30 June 20102.0319
4.0415

(1) Units in the CorVal Industry House Trust were first allotted on 22 January 2010. The first income distribution was therefore in the quarter ended 31 March 2010.

Disclosure Principle 8 – Withdrawal Rights

Investors have no rights to withdraw from the Trust as it is a fixed term investment with no ongoing liquidity.