• The Retirement Living Capital (RLC) Fund has been established to create an innovative investment Fund to help maximise retirement capital investment and to assist in subsidizing the cost of retirement living, as opposed to the traditional Retirement Living options where retirees invest in Retirement living villages and are subject to deferred Management Fee models or Land Lease arrangements.

• ACH are looking to provide an innovative investment option which will allow retirees the ability to invest Funds in a wholesale Unit Trust which will provide investors to the opportunity of tax advantaged income and capital growth, whilst also providing investors with the ability to Rent a unit or home in a retirement village. This option will help protect the capital investment of the retiree, as well as help subsidise future income and capital benefits.

The strategy for the Fund is to invest in:

• Retirement living houses and units

• Retirement living Land developments and Sub-divisions

• Development funding

• Retirement Living refurbishment and repositioning

• Acquisition and conversion of established retirement living portfolios

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The Fund will derive its income for multiple sources including:

• Rental income on existing retirement living portfolio stock

• Interest income from development funding

  • Acquisition refurbishment and disposal of retirement living stock deemed non-core to the portfolio

  • Land acquisition, sub-division and disposal.

  • Where applicable Residential DA approval and sale or development and sale if the site adjoins a retirement living location.

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ACH will engage specialists in each of these investment opportunities to provide investment research and operational oversight of the investments on a day to day basis. The Funds that are invested into can be direct ACH Funds or externally operated Funds as long as they meet the investment criteria, compliance and return profile required under this document. This gives the ACH fund the advantage of being able to invest across a wide range of geographic locations and to maximise the expertise and management of the investments.

ACH will advise investors by way of regular updates the investment streams and the current Fund offerings that we are recommending at the time of investment.

The Fund will have an Initial Term of 5 years (60 months).

The manager has the authorisation to close and wind up the Fund within this period, should there be any adverse market conditions which require the RLC’s investments to be liquidised and proceeds held in cash to protect the investment.

At the point of windup, the Manager will calculate any deferred Management fees and or Performance fees due to the Manager, based on the performance to date. Any fees will be deducted prior to any return of Funds and profits to investors.

Prior to the end of the Initial Term and each subsequent term, ACH will make a recommendation to Investors as to the future strategy for the Fund. The recommendation may be to extend for a further five (5) year term, invest further capital in the Fund, sell or list the portfolio as a whole or in part, or terminate the Fund. Investors must approve the recommendation by way of a Special Resolution; if the recommendation is not approved then the Fund will terminate, and the Investments will be disposed of in an orderly manner.

This process will be repeated on a rolling five (5) year basis for the life of the Fund.

The RLC is a Managed Investment Trust structure that allows Retirees to invest capital that would otherwise be invested into a retirement home and subject to Deferred Management Fees and share of Capital gains or losses.

The investment into the Trust is used to build, develop or refurbish retirement living villages providing an income return to the investor. The Investor also takes out a lease / rental agreement for a retirement home or unit within the Fund structure.

This then allows the investor to use the income generated from the investment as an offset to the rental costs of the units, to help preserve the capital of the retiree and potentially supplement their income

The Fund will purchase, build or refurbish retirement villages, which it will then hold as long-term investment assets providing Tax advantaged distributable income. The Income will be gained through the Rental leases that are entered into with the retirees. Leases will typically be 5-year leases and will cover the cost of the unit or home as well as a contribution towards the running costs of the village.

The home (unit or house) will remain the property of the Fund, and the Fund will be liable for routine maintenance and capital expenditure as set in the lease agreement. On termination of the lease, the retiree will be subject to an incidental makegood payment which will cover the cost of internal painting, carpets and other refurbishment costs to makegood the property to the standard at which the lease was originally taken.

The Retirees, also have the option to take out Fitout payments to cover the costs of Furnishing the property which can be added into the lease term, should the retiree choose to take up this option. Fitouts will be provided by the Fund manager or related party, and subject to the options available.

The Retiree enters into the lease agreement for the set period and will be subject to break fees if the lease is terminated as per normal lease agreements.

The Retiree will invest into the Fund, which will be priced quarterly, and will be subject to annual revaluations of the portfolio, which will be reflected in the unit price of the investment. It is noted that this price may increase or decrease based on the property market at the time of valuation.