What is the nature of Scope investments?
The assets of the Scope trust you invest in are physical property of a commercial nature. Each Investor becomes a unit holder in the trust. Units are issued in proportion to the amount invested relative to the total net asset value of the trust’s assets. As a result you effectively become a part-owner of the Property. Our information memorandum specifically details the assets and/or intended assets you are investing in.
How long are investments for?
Each Scope property syndicate generally has an intended life of approximately seven (7) to ten (10) years. This sees most Scope Investors having a long term, passive investment approach.
What sort of returns can I expect?
Returns vary according to a number of factors including the performance of the property and leasing market at the time. Wherever possible, Scope provides a forecast of future returns in the offer document – however, market conditions and circumstances do change and where this impacts the returns to investors, Scope will always communicate this in advance.
Are there any risks?
There are risks associated with any investmentt, and each information memorandum prepared by Scope details anticipated risk factors for investors to consider. Please read the information memorandum carefully and before deciding to invest, we strongly encourage you to consult your financial advisor to assess whether an investment in a Scope Syndicate is appropriate for you.
Can a SMSF purchase units in a Scope investment?
Yes, complying self managed superannuation funds may invest in our syndicates.
Can I sell my syndicate units early?
Each Scope syndicate is wound upon the sale of the property. However, if you would like to sell your units in a syndicate before the end, Scope will put you in contact with potential buyers and you may then negotiate directly with them to dispose of your units.
How much will the syndicate borrow?
When Scope acquire properties, the syndicate will typically borrow between 50% and 65% of the purchase price of the property using Non-Recourse debt funding.
What is non-recourse borrowings?
This type of funding has no recourse back to investors. The extent of the Investors financial exposure and liability is limited to the value of the equity they invest into each syndicate.
What is a sophisticated investor?
Sophisticated Investors as defined under section 708(8) or "Experienced Investors" described under 708(10) of the Corporations Act.
There are two ways of meeting the definition of a Sophisticated Investor which are described below.
1. The investor’s accountant to declare the investor has net assets of at least $2.5 million or an annual income of least $250,000 per annum for the last two financial years; or
2. The minimum amount payable for the units on acceptance of the offer by the investor to whom the offer is made is at least $500,000.
Who manages the syndicates?
Scope’s strong “hands on” approach with all their properties sees us directly managing all our own syndicates.
Who manages the property on behalf of the syndicate
Through related entity, Scope Property Management Pty Ltd, undertake the property management for every asset in the Scope portfolio. Scope Property Management Pty Ltd, are licensed real estate agents, Triennial Certificate no. 60743.