Pyrmont Bridge Road Mortgage Fund

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6% p.a. return to investors

Quarterly distributions

$68 million capital protection buffer

5 year investment term

The Pyrmont Bridge Road Mortgage Fund aims to provide investors quarterly cash distributions while adopting a defensive strategy by investing in a second mortgage over a high-quality, capital stable and income producing asset. The asset, located at 55 Pyrmont Bridge Road, Pyrmont NSW, is a flagship asset in the real estate portfolio of WOTSO Property (ASX:WOT).

Key Terms

Fund Purpose

The Fund is a single asset, closed-end, unlisted mortgage scheme. The Fund receives income from the funds lent to the Property Owner

Term

5 years (commencing 1 July 2022)

Return

6% p.a. (net of fees)

Management Fee

Fund Management Fee of 0.5% p.a. of the gross asset value of the Fund

Performance Fee

Nil

Fund size

20,000,000 units @ $1.00 per unit to raise $20 million

Minimum investment

$1,000

Withdrawal

The Fund is not liquid and Investors have no right to withdraw their investment during the term of the Fund (5 years).

Capital Protection

$68 million capital protection buffer. The value of the property would need to decline by 45% before Fund capital is impacted.

Distributions

Paid quaterly

Now open for investment

Risks

All investments are subject to risk, which means the value of your investment may rise or fall. Before making an investment decision, it is important to understand the risks that can affect the value of your investment. Key risks of the Fund include, but are not limited to:

Priority

Unit holders’ interests rank behind the First Mortgagee which means that the First Mortgagee will be paid before the Fund if the Property is sold.

Diversification

The Fund is a single-asset fund meaning investors have absolute exposure to the returns generated by the Property.

Credit risk

The risk that the Property may decline in price or fail to pay interest or principle when due because the borrower experiences financial strain.

Liquidity risk

Investors have no right to withdraw during the term of the Fund (5 years).