PDS_Driftwood_part3

FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND48

4

1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony

Internal LivingExternal Living

70 SQM11 SQM

Cupboard Door & Bifold Laundry

OTHERS

Sliding Door & Window

Hot Water Cylinder + A/C unit

ACACIA FLOOR PLAN

1. Kitchen 5. Second Bedroom

2. Living Room 6. Study

3. Master Bedroom 7. Second Bathroom

4. Ensuite Bathroom 8. Balcony

Internal Living Area 70 SQM

External Living Area 11 SQM



'NS�6@SDQ�"XKHMCDQ�� "�TMHS

1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony


70 SQM11 SQM


OTHERS



Acacia Apartments

1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony


70 SQM11 SQM


OTHERS



PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER 49





MELALEUCA FLOOR PLAN

1. Study 5. Ensuite Bathroom

2. Family Bathroom 6. Kitchen

3. Second Bedroom 7. Living Room

4. Master Bedroom 8. BalconyHot Water Cylinder + A/C unit


1. Study

3. Second Bedroom

5. Ensuite

7. Living Room

2. Family Bathroom

4. Master Bedroom

6. Kitchen

8. Balcony


OTHERS


74 SQM14 SQM

6

74

5

3

1

2

8

4



1. Study

3. Second Bedroom

5. Ensuite

7. Living Room

2. Family Bathroom

4. Master Bedroom

6. Kitchen

8. Balcony


OTHERS


74 SQM14 SQM

6

74

5

3

1

2

8

Melaleuca Apartments

1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony


70 SQM11 SQM


OTHERS




4

BANKSIA FLOOR PLAN

1. Kitchen

3. Living Room

5. Family Bathroom

7. Ensuite Bathroom

2. Laundry Cupboard

4. Second Room

6. Master Bedroom

8. Balcony


OTHERS




69 M23 M

1

2

3

8

4

6

7

5

Banksia Apartments

BANKSIA FLOOR PLAN

1. Kitchen 5. Family Bathroom

2. Laundry Cupboard 6. Master Bedroom

3. Living Room 7. Ensuite Bathroom

4. Second Bedroom 8. Balcony






1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony


70 SQM11 SQM


OTHERS



1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony


70 SQM11 SQM


OTHERS




EUCALYPT FLOOR PLAN

1. Study / Laundry

3. Living Room

5. Balcony

2. Kitchen

4. Master Bedroom

6. Bathroom


OTHERS


52 SQM16 SQM


1

3

4

6

5

2

4Eucalypt Apartments





EUCALYPT FLOOR PLAN

1. Study / Laundry 4. Master Bedroom

2. Kitchen 5. Balcony

3. Living Room 6. BathroomHot Water Cylinder + A/C unit


1. Study

3. Second Bedroom

5. Ensuite

7. Living Room

2. Family Bathroom

4. Master Bedroom

6. Kitchen

8. Balcony


OTHERS


74 SQM14 SQM

6

74

5

3

1

2

8

1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony


70 SQM11 SQM


OTHERS




4

1

2

7

4

5

6

3

GARDENIA FLOOR PLAN

1. Kitchen

3. Study Room

5. Bathroom

7. Balcony

2. Living Room

4. Master Bedroom

6. laundry


OTHERS


59 SQM18 SQM


Gardenia Apartments

GARDENIA FLOOR PLAN

1. Kitchen 5. Bathroom

2. Living Room 6. Laundry

3. Study 7. Balcony

4. Master Bedroom




'NS�6@SDQ�"XKHMCDQ�� "�TMHSHot Water Cylinder + A/C unit


1. Study

3. Second Bedroom

5. Ensuite

7. Living Room

2. Family Bathroom

4. Master Bedroom

6. Kitchen

8. Balcony


OTHERS


74 SQM14 SQM

6

74

5

3

1

2

8

1

2

7

5

3

4 6

8

ACACIA FLOOR PLAN

1. Kitchen

3. Master Room

5. Second Bedroom

7. Second Bathroom

2. Living Room

4. Ensuite Bathroom

6. Study

8. Balcony


70 SQM11 SQM


OTHERS



53

Apartment Interior Finishes

FLOORS

TILESEntry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ceramic Tiles Living / Dining . . . . . . . . . . . . . . . . . . . . Ceramic Tiles Kitchen . . . . . . . . . . . . . . . . . . . . . . . . . . . Ceramic Tiles Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . Ceramic TilesEnsuite / Bathroom . . . . . . . . . . . . . . . Ceramic TilesLaundry . . . . . . . . . . . . . . . . . . . . . . . . . . Ceramic Tiles

CARPETRobes / WIR . . . . . . . . . . . . . . . . . . . . . . "@QODS�NM�4MCDQK@XBedrooms . . . . . . . . . . . . . . . . . . . . . . . . "@QODS�NM�4MCDQK@X

WALLS

PAINTGeneral Areas . . . . . . . . . . . . . . . . . . . . Paint Finish on Plasterboard Doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . Paint Finish Architraves & Skirting . . . . . . . . . . . . . Paint Finish on Pine

TILESEnsuites / Bathroom / Laundry . . . . . Generally: Ceramic Wall Tiles With: Tile Feature in Shower Recess and behind vanity

&(,/,1*6

Ceilings Generally . . . . . . . . . . . . . . . . 3DWSTQD�/@HMS�%HMHRG�NM�"NMBQDSD�2NƧSCeilings Wet Areas . . . . . . . . . . . . . . . . Paint Finish on Water Resistant Plasterboard

.,7&+(1�),7287

Bench Tops . . . . . . . . . . . . . . . . . . . . . . . Reconstituted Stone or similarCabinetry Generally . . . . . . . . . . . . . . . Melamine Carcass / Laminate on 16mm MR particle boardFeature Cabinetry . . . . . . . . . . . . . . . . . Melamine Carcass / Laminate on 16mm MR particle boardSplash Back . . . . . . . . . . . . . . . . . . . . . . Ceramic TilesKickplate . . . . . . . . . . . . . . . . . . . . . . . . . Laminate on 16mm MR particle boardSink . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless Steel Single BowlTapware . . . . . . . . . . . . . . . . . . . . . . . . . . Chrome MixerCooktop . . . . . . . . . . . . . . . . . . . . . . . . . . Ceramic CooktopOven . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless Steel Electric OvenRangehood . . . . . . . . . . . . . . . . . . . . . . . Slide-Out Stainless Steel RangehoodMicrowave Oven . . . . . . . . . . . . . . . . . . -NS�RTOOKHDC�Ŕ�RO@BD�NMKXDishwasher . . . . . . . . . . . . . . . . . . . . . . . Freestanding DishwasherFridge Space . . . . . . . . . . . . . . . . . . . . . 800mm WideHardware . . . . . . . . . . . . . . . . . . . . . . . . . Satin Chrome Finish Joinery Handles

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54

Apartment Interior Finishes

(168,7(��%$7+5220�),7287

Basin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5HSQDNTR�"GHM@�6@KK�LNTMSDC�!@RHMToilet . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5HSQDNTR�"GHM@�#T@K�%KTRG�3NHKDSBasin Mixer . . . . . . . . . . . . . . . . . . . . . . . Chrome MixerShower Head . . . . . . . . . . . . . . . . . . . . . . Chrome Shower HeadShower Mixer . . . . . . . . . . . . . . . . . . . . . Chrome MixerMirrored cabinet . . . . . . . . . . . . . . . . . . Frameless with Polished Edges / Melamine carcassShower screen . . . . . . . . . . . . . . . . . . . . Semi Frameless GlassAccessories . . . . . . . . . . . . . . . . . . . . . . . Chrome Fixtures & Fittings

LAUNDRY FITOUT

Doors . . . . . . . . . . . . . . . . . . . . . . . . . . . . Laminate on 16mm MR Particle BoardTub . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stainless Steel Tub with under cabinetDryer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Wall Hung DryerHardware . . . . . . . . . . . . . . . . . . . . . . . . . Satin Chrome Finish Joinery HandlesTapware . . . . . . . . . . . . . . . . . . . . . . . . . . Chrome Mixer

52%(6��:,5��/,1(1

#NNQR�Ŕ�6(1��+HMDM . . . . . . . . . . . . . . Laminate on 16mm MR particle board#NNQR�Ŕ�1NADR� . . . . . . . . . . . . . . . . . . . . ��W�,HQQNQ��W�5HMXK�RKHCHMF�CNNQRInternal . . . . . . . . . . . . . . . . . . . . . . . . . . Melamine Finish Cabinetry and Chrome Finish Hanging RailsHardware . . . . . . . . . . . . . . . . . . . . . . . . . Satin Chrome Finish Joinery Handles

DOOR HARDWARE

#NNQ�'@MCKDR�Ŕ�@KK�SXODR . . . . . . . . . . . Metal Lever Handles

&(,/,1*�)$16��$,5�&21',7,21,1*�$1'�(;+$867

Ceiling Fans to Living Areas and BedroomsAir Conditioning Split System to Living Areas and Bedrooms,DBG@MHB@K�5DMSHK@SHNM�SN�$MRTHSD��!@SGQNNL�HM�@BBNQC@MBD�VHSG� TRSQ@KH@M�2S@MC@QCR�@MC�!"

,7��&20081,&$7,216

, �35��/@X�35�.TSKDSR�SN�+HUHMF� QD@�@MC�!DCQNNLRData Points to Living, Study and BedroomsTelephone Points to Study and Master Bedroom

55

General Finishes

(;7(51$/

Balcony / Terrace . . . . . . . . . . . . . . . . . . Reinforced Concrete Slab and/or Slip Resistant Tiling6@KKR�Ŕ�$WSDQM@K . . . . . . . . . . . . . . . . . . . Painted Masonry��Ŕ�!DSVDDM�4MHSR�� %HQD�@MC�2NTMC�1@SDC�6@KK�2XRSDLR�SN�!" �@MC� TRSQ@KH@M� Standards$MSQX�#NNQR�SN�4MHSR . . . . . . . . . . . . . . . Fire Rated Doors with Paint FinishDoors to Balconies . . . . . . . . . . . . . . . . Powdercoated Aluminium Framed Sliding Doors with GlazingWindows . . . . . . . . . . . . . . . . . . . . . . . . . Powdercoated Aluminium Frames with GlazingBalustrades . . . . . . . . . . . . . . . . . . . . . . . In accordance with Council and BCA Requirements Powdercoated Aluminium Framed & Glazed Balustrade

&20081,7<�5(&5($7,21$/�)$&,/,7,(6

Outdoor PoolGymnasiumOutdoor BBQ Area

GYM EQUIPMENT

POOL EQUIPMENT

BBQ FURNITURE

4.10 Communal Facilities


44.11 Elevation Images

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AERIAL FLOOR PLANS

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4BUILDING A BUILDING B BUILDING C


4.12 Indicative Computer Generated Images

4


4.12.1 Kitchen and Dining

4.12.2 Living Room

4


4.12.3 Bedroom

4.12.4 Bathroom

4


5.Market Information MACKAY


MACKAY HARBOUR

SHOAL POINT

YALBOROO

CALEN

MOUNT CHARLTON

MOUNT OSSA

KUTTABUL

HAMPDEN

MARIAN

ETON

WALKERSTON

DUNNROCK

BALBERRA

SUNNYSIDE

LAGUNA QUAYS

BLOOMSBURY

CAPE HILLSBOROUGHSEAFORTH

ST HELENS BEACH

FARLEIGH

BLACKS BEACH

Carlisle Is

Linne Is

Anchor Islands

Shaw Is

Brampton Is

Keswick Is

St Bees Is

SLADE POINT

MACKAY

BAKERS CREEK

5.1 Overview of MackayMackay is one of the fastest growing regions in Australia. Looking to the future, robust growth is forecast, with the regional population projected to grow to between 200,000 and 300,000 within 20 years. The growth is driven by a diverse regional economy. Mackay hosts much of the engineering, manufacturing and mining services industries supporting the regional economy. In addition, Mackay boasts agribusiness, tourism, logistics, government sector, education and marine sectors.

2HFMHƥB@MS�HMEQ@RSQTBSTQD�HMUDRSLDMS�HR�creating jobs, both directly and indirectly and supporting growing incomes. Due to the strong local economy, average incomes are ʙ��@MC�TMDLOKNXLDMS�HR�NMKX�� Source: Mackay Regional Council, ABS).

5.2 Snapshot of Economic Conditions

,1',&$725 AUSTRALIA 0$&.$<

GDP During the December quarter of 2012, the TRSQ@KH@M�&#/��RD@RNM@KKX�@CITRSDC��HMBQD@RDC�� 3GQNTFG�SGD�XD@Q�NE��&#/�FQNVSG�V@R�� .M�SGD�DWODMCHSTQD�RHCD��SGD�HMBQD@RD�SGHR�PT@QSDQ��HM�RD@RNM@KKX�@CITRSDC�UNKTLD�SDQLR��V@R�CQHUDM�AX�GNTRDGNKC�ƥM@K�BNMRTLOSHNM�DWODMCHSTQD��@CCHMF�� BG@MFDR�HM�HMUDMSNQHDR��@CCHMF�� @MC�MDS�DWONQSR��@CCHMF�� /@QSH@KKX�NƤRDSSHMF�SGDRD�QHRDR�V@R�OQHU@SD�FQNRR�ƥWDC�B@OHS@K�ENQL@SHNM��CDSQ@BSHMF��

The Mackay Region is one of the fastest growing DBNMNLHDR�HM� TRSQ@KH@��BNMSQHATSHMF�NUDQ�ʙ�� billion to the economy during the year 2011, which HR�DPTHU@KDMS�SN�@��XD@Q�NM�XD@Q�FQNVSG

3GD�QDFHNM�BNMSQHATSDR�SN�@ANTS�� NE�0TDDMRK@MCŗR�&QNRR�2S@SD�/QNCTBS��&2/��VGHKD�BNLOQHRHMF�� NE�0TDDMRK@MCŗR�ONOTK@SHNM �When population is accounted for, the output per capita is more than 2.5 times the size of 0TDDMRK@MCŗR�&2/�ODQ�B@OHS@�@MC�@ANTS��greater than the Australian GDP per capita. Aside from being the regional capital and supporting over 50 operating mines, Mackay has a diverse economic ecosystem, with many and varied industries.


5,1',&$725 AUSTRALIA 0$&.$<

POPULATION TRSQ@KH@ŗR�DRSHL@SDC�QDRHCDMS�ONOTK@SHNM��$1/��@S�30 June 2011 of 22.5 million people is projected to increase to between 30.9 and 42.5 million people by 2056, and to between 33.7 and 62.2 LHKKHNM�ODNOKD�AX�� 3GD�@FDHMF�NE� TRSQ@KH@ŗR�population, already evident in the current age structure, is expected to continue due to sustained low levels of fertility combined with increasing life DWODBS@MBX�@S�AHQSG �3GD�LDCH@M�@FD�NE� TRSQ@KH@ŗR�ONOTK@SHNM�� XD@QR�@S��)TMD��HR�projected to increase to between 38.7 years and 40.7 years in 2026 and to between 41.9 years and 45.2 years in 2056.

3GD�DRSHL@SDC�QDRHCDMS�ONOTK@SHNM��$1/��NE�,@BJ@X�Region at 30 June 2011 was 120,752 persons, an HMBQD@RD�NE��ODQRNMR�NQ�� NUDQ�SGD�XD@Q �This compares with an increase of 3,137 persons or � ��HM�SGD�XD@Q�DMCHMF�)TMD�� 3GD�ONOTK@SHNM�is expected to increase to between 134,336 and 142,715 persons by 2016 and to between 200,000 and 300,000 persons by 2031. The median age of the Mackay region population is projected to increase by 2.6 years from a median age of 35.7 years in 2006 to a median age of 38.3 years in 2031, compared with a median age of 40.6 years in Queensland.

EMPLOYMENT During the year 2012, the number of people employed increased by a seasonally adjusted � ��SN��

The increase in employment was driven by increased part-time employment, up 20,200 people to 3,450,700. This was enough to counterbalance the fall in full-time employment by 9,800 to 8,098,400. In January 2013, the number of unemployed persons increased by 2,000 people ATS�SGD�TMDLOKNXLDMS�Q@SD�QDL@HMDC�@S�� 3GHR�was due to the number of people looking for part time work increasing by 7,800.

The unemployment rate in the Mackay statistical CHUHRHNM�V@R�K@RS�QDONQSDC�@S�� VDKK�ADKNV�SGD�RS@SD�@UDQ@FD�� 3GD�O@QSHBHO@SHNM�Q@SD�� V@R�GHFGDQ�SG@M�SGD�RS@SD�@UDQ@FD��

The occupational category of Technicians and Tradespersons employed the largest proportion of SGD�VNQJENQBD�HM�SGD�QDFHNM�� ENKKNVDC�AX�,@BGHMDQX�NODQ@SNQR�@MC�CQHUDQR��@MC�NSGDQ�/QNEDRRHNM@KR��

INFLATION 3GD�"NMRTLDQ�/QHBD�(MCDW��"/(��QNRD�AX�� through the year to the December quarter 2012, BNLO@QDC�VHSG�@�QHRD�NE�� SGQNTFG�SGD�XD@Q�SN�SGD�2DOSDLADQ�PT@QSDQ�� 3GD�"/(�QNRD�AX�� in the December quarter 2012, compared with a QHRD�NE�� HM�SGD�2DOSDLADQ�PT@QSDQ��

N/A

INTEREST RATE The benchmark interest rate in Australia was last QDONQSDC�@S�� HM�%DAQT@QX��

3GD�1DRDQUD�!@MJ�NE� TRSQ@KH@��1! ��G@R�CQNOODC�interest rates over the past year as growth has dwindled with poor international sentiment and the local strong dollar diminishing international SQ@CD�BNLODSHSHUDMDRR �3GD�(MƦ@SHNM�Q@SD�HR�VDKK�VHSGHM�SGD�S@QFDS�1! �Q@MFD�NE��Ŕ��

N/A


0%

5%

4%

3%

2%

1%

2001 2002 2003 2004

Annu

aliz

ed P

opul

atio

n Gr

owth

Year

Source: ABS 2012

Annualized Population Growth 2001-2012

Australia Mackay

2005 2006 2007 2008 2009 2010 2011 2012F

2%

4%

6%

8%

10%

2001 2002 2003 2004

Annu

aliz

ed U

nem

ploy

men

t Rat

e

Year

Source: ABS 2012

Annualized Unemployment Rate 2001-2012

Australia Mackay

2005 2006 2007 2008 2009 2010 2011 2012F

The Mackay Region has demonstrated consistently higher population growth compared with the Australian National Average.

The Mackay Region has demonstrated a consistently lower unemployment rate compared with the Australian National Average.

5


55.3.1 Strong Population Growth

According to the Australian Bureau of Statistics (ABS), the Mackay Local &NUDQMLDMS� QD@��,@BJ@X�+& ��G@C�@�SNS@K�population of 116,123 at June 2010. This equates to a strong population growth rate NE�� EQNL�)TMD��VGHBG�HR�VDKK�above the national average. A growth rate NE�@MXSGHMF�NUDQ��FDMDQ@KKX�DPT@SDR�to a healthy property market through sustained demand for new and existing housing. The Mackay community has a median age of 35 years, which is younger than the national average of 38.3 years. A younger population generally bodes well for future demographics and population growth compared to an older population that may decline as it ages.

5.3.2 Population Projections

Of the total population residing within the Mackay LGA, the bulk of residents are located within the Mackay City region. The population is skewed towards residents aged 15 years and younger @BBNTMSHMF�ENQ�� NE�SGD�ONOTK@SHNM��VGHKD�NMKX�� @QD�@FDC��XD@QR�@MC�older. The bulk of the households in the Mackay LGA are separate houses, with �� HM�SGD�,@BJ@X�@QD@�@MC�QNTFGKX��HM�SGD�2@QHM@�@MC�,HQ@MH� QD@R � )TRS�NUDQ��NE�SGD�CVDKKHMFR�HMRHCD� the Mackay LGA are either owned outright or in the process of being purchased, leaving a rental market comprising �� NE�CVDKKHMFR �3GHR�OQNONQSHNM�NE�owner occupier and rented premises is indicative of a healthy property market.

Mackay is forecast by ABS to experience sustainable high population growth over the next 20 years and grow into a top 10 city in Australia by 2031.

Long term population growth of 3% p.a. is forecast to underpin sustainable demand for housing in the region.

125,000

120,000

115,000

110,000

105,000

100,000

200,000

300,000

95,000

90,000 1986 1991

Popu

latio

n

YearSource: ABS 2012

Mackay Region Population 1986-2031

1996 2001 2006 2011 2031

HIGHCASE

LOWCASE

//

////

350,000

300,000

250,000

200,000

150,000

100,000

50,000

02011 2016

Proj

ecte

d Po

pula

tion

YearSource: ABS 2012

Projected Population Growth in Mackay Region 2011-2031

2021 2026 2031

Low

Medium

High

5.3 Demographic Snapshot


55.4.1 Market Conditions

The Mackay region experienced a RHFMHƥB@MS�ANNL�CTQHMF�SGD��ODQHNC��VHSG�ƥUD�BNMRDBTSHUD�XD@QR�NE�double-digit growth and a major peak @ANUD��HM�� (M�SGD�KNMF�term, all the suburbs which make up the Mackay market have double-digit growth Q@SDR��SGD�@UDQ@FD�@MMT@K�QHRD�HM�LDCH@M�house prices), typically averaging around ��Ŕ��ODQ�@MMTL �(APM)

The rental market is very strong in Mackay, VHSG�U@B@MBX�Q@SDR�NE�NMKX�� 1DMS@K�XHDKCR�HM�,@BJ@X�@UDQ@FD�� @MC�@UDQ@FD�QDMSR�FQDV�@S�� HM�� Given strong demand drivers, most commentators expect rents to continue to face upward pressure in coming years.

,@BJ@X�HR�DWODBSDC�SN�FQNV�RHFMHƥB@MSKX�in order to provide housing for new LHFQ@MSR�VHSG��Ŕ��residents expected to live in Mackay by 2031. Despite the anticipated demand, relatively few high-rise residential development projects were ready to begin construction in 2012. Limited current and short term supply, combined with strong near term and positive long-term demand, provides a favourable demand supply dynamic for property investment.

Agent commentaries suggest that demand for apartment living is increasing HM�,@BJ@X��QDƦDBSHMF�SGD�NUDQ@KK�OQNODQSX�demand, lifestyle changes and the needs of business travellers.

5.4 Mackay Property Market

100

120

140

160

180

200

220

240

260

280

2002 2003 2004 2005 2006 2007 2009 20102008 2011 2012

Years

Source: AP Data

Cumulative Annual Median Dwelling Price GrowthMackay 2002-2012

Dwelling Price Index (base: 2002)

100

120

140

160

180

200

220

240

260

280

2002 2003 2004 2005 2006 2007 2009 20102008 2011 2012

Years

Source: AP Data

Cumulative Annual Median Dwelling Price GrowthMackay 2002-2012

Dwelling Price Index (base: 2002)


55.4.2 Drivers of current Residential Market

� Strong local economy with low unemployment, high incomes and RSQNMF�CDLNFQ@OGHB�OQNƥKD

� 'HFG�HMBNLDR��GHFGDQ�SG@M�QLD average)

� +NV�TMDLOKNXLDMS�� UR �� for Australia)

� Low current and forecast supply

� 3HFGS�QDMS@K�L@QJDS�VHSG�NMKX�� U@B@MBX��@R�@S��%DA��

� Strong population growth rate NE�]��O @ ��@KLNRS�CNTAKD�SGD�national average)

� Major infrastructure developments are creating jobs

� Mackay is the primary infrastructure and export hub for the region with SVN�L@INQ�ONQSR��'@X�/NHMS�@MC�Dalrymple Bay)

� Idyllic tropical North Queensland lifestyle on the Great Barrier Reef with an abundance of natural beauty and attractions


6.financial Information

(MUDRSNQR�GNKCHMF� ��"K@RR�4MHSR��!��"K@RR�4MHSR�@MC�"��"K@RR�4MHSR�G@UD�@�QHFGS�SN�RG@QD�HM�SGD�OQNƥSR�NE�SGD�#DUDKNOLDMS � The entitlement is to receive a return out of Development /QNBDDCR�B@OODC�@S�@�L@WHLTL�NE��NE�SGD�KHRSDC�OTQBG@RD�OQHBD�NE�SGDHQ� O@QSLDMS�OTQBG@RDC�HM�SGD�#DUDKNOLDMS��A@RDC�on the price set out in the Apartment Purchase Contract).

(MUDRSNQR�GNKCHMF�#��"K@RR�4MHSR�VHKK�@KRN�G@UD�@�QHFGS�SN�RG@QD�HM�OQNƥSR�NE�SGD�#DUDKNOLDMS��B@OODC�@S�@�L@WHLTL�QDSTQM�NE��NE�B@OHS@K�HMUDRSDC�ODQ�@MMTL�ENQ�SGD�SDQL�NE�SGD�4MHSR �3GHR�investment return entitlement ranks in priority to the investment QDSTQM�DMSHSKDLDMSR�NE� ��SN�"��"K@RR�4MHSGNKCDQR �

3GHR�QDSTQM�DMSHSKDLDMS�BNLOQHRDR�@�ƥWDC�O@XLDMS�NE��NE�SGD�#��"K@RR�4MHS�OQHBD�ODQ�@MMTL��VHSG�RTBG�CHRSQHATSHNM�O@HC�SN�SGD�GNKCDQ�@MMT@KKX��@MC�@�QDSTQM�NTS�NE�#DUDKNOLDMS�/QNƥSR�B@OODC�@S�@�L@WHLTL�NE��NE�SGD�4MHS�OQHBD�ODQ�@MMTL�ENQ�SGD�SDQL�HM�VGHBG�SGDX�GNKC�SGDHQ�#��"K@RR�4MHS

Investment returns referred to below are on a pre tax basis and so the Fund will be required to pay any applicable tax on the FQNRR�OQNƥSR�FDMDQ@SDC�EQNL�SGD�#DUDKNOLDMS�OQHNQ�SN�(MUDRSNQR�receiving their returns.

As the Fund is likely to be treated as a public trading trust for tax purposes, Investors may receive franking credits for dividends / CHRSQHATSHNMR�O@HC�SN�SGDL�NTS�NE�#DUDKNOLDMS�/QNƥSR

6.1 Summary of Investment Return Entitlements Important note

The Investment Manager has made QD@RNM@AKD�DƤNQS�SN�DMRTQD�SG@S�SGD�@RRTLOSHNMR�TMCDQOHMMHMF�NTQ�ƥM@MBH@K�model are realistic and conservative. However, no guarantee or warranty is made as to the accuracy of the forecasts when compared to actual performance.

Property development projects are subject SN�U@QHNTR�QHRJR��SGDQDENQD�(MUDRSNQRŗ�QDSTQMR�on capital invested are not guaranteed and @QD�RTAIDBS�SN�U@QHNTR�HMUDRSLDMS�QHRJR��2DD�Section 9 of this PDS).

(MUDRSNQRŗ�QDSTQMR�@QD�@KRN�RTAIDBS�SN� various contingencies, including in particular the successful completion of the Development and construction costs and other Development costs, expenses and liabilities being within those estimated by the Investment Manager based on all relevant materials, quotations and inquiries conducted.


&ODVV�$��8QLWV�

Note: based on a maximum capped investment return of $60,000 (being 15% of $400,000 1 bedroom Apartment)

Return on Equity Invested Over 24 months

-XO�� -XO�� -XO��

Investment -100,000

&DSLWDO�5HWXUQ 100,000

Investment Return 60,000

Total -100,000 160,000

IRR ��

&ODVV�%��8QLWV�

Note: based on a maximum capped investment return of $75,000 (being 15% of $500,000 standard 2 bedroom Apartment)


-XO�� -XO�� -XO��

Investment -125,000



Total -125,000 200,000

IRR ��

&ODVV�&��8QLWV�

Note: based on a maximum capped investment return of $82,500 (being 15% of $550,000 premium 2 bedroom Apartment)


-XO�� -XO�� -XO��

Investment -150,000



Total -150,000 232,500

IRR ��

66.3 Indicative forecast equity return3GD�ENKKNVHMF�HMCHB@SHUD�ƥM@MBH@K�LNCDK�NTSOTSR�CDLNMRSQ@SD�SGD�HMCHB@SHUD�ENQDB@RS�DPTHSX�QDSTQM��HMSDQM@K�Q@SD�NE�QDSTQM�NQ�ř(11Ś��ENQ�4MHSGNKCDQR�HM�SGD�%TMC�NM�SGD�A@RHR�NE�@��LNMSG�investment period. In the event the investment period is longer than 24 months, the resultant IRR to investors will be lower. 3GD�(11�DƤDBSHUDKX�LD@RTQDR�SGD�HMUDRSLDMS�QDSTQM�@R�@M�@MMT@K�interest rate. Assuming other factors remain the same, the IRR is higher if the investment period is shorter in duration. The amounts referred to below are on a pre tax basis.

6.2 Investors’ investment return entitlements on their Units are subject to Development ProceedsPrior to Investors being entitled to receive distributions for the OTQONRD�NE�SGDHQ�HMUDRSLDMS�QDSTQM�DMSHSKDLDMSR�NM�SGDHQ�4MHSR��the following costs and expenses must be met in full:

�H�� Costs and expenses associated with the acquisition of the Property;

�HH�� "NRSR�@MC�DWODMRDR�@RRNBH@SDC�VHSG�SGD�.ƤDQ�

�HHH�� All costs and expenses associated with the Development �HMBKTCHMF�BNMRSQTBSHNM�BNRSR��

�HU�� All costs and expenses associated with the Driftwood /QNIDBS��HMBKTCHMF�EDDR�O@X@AKD��

�U�� Any other liabilities of the Fund in connection with SGD�#QHESVNNC�/QNIDBS��ENQ�DW@LOKD��HM�SGD�DUDMS�NE�@MX�unforeseen litigation).

The above costs and expenses will be met partially out of funds Q@HRDC�TMCDQ�SGD�.ƤDQ�@MC�EQNL�CDAS�ƥM@MBD�OQNBTQDC�EQNL�SGD�Senior Lender during the term of the Development, and then ƥM@KKX�NTS�NE�OQNBDDCR�QD@KHRDC�EQNL�SGD�RDSSKDLDMS�NE�SGD�R@KD�of Apartments and other assets comprised in the Development.

Investors will then be entitled to receive payment of their investment return out of the Development Proceeds remaining after all of the abovementioned costs, expenses, fees and liabilities have been met and after any applicable taxes have ADDM�O@HC�NM�SGD�#DUDKNOLDMS�/QNƥSR �

3GDQDENQD��(MUDRSNQRŗ�HMUDRSLDMS�QDSTQM�DMSHSKDLDMSR�NM�SGDHQ�4MHSR�@R�RDS�NTS�HM�SGHR�/#2�@QD�RTAIDBS�SN�SGDQD�ADHMF�RTƧBHDMS�Development Proceeds available to pay such returns.


The previous examples are illustrative only and actual results may vary. Those examples assume no capital growth in the Apartment @BPTHQDC��HS�HR�MNSDC�SG@S�(MUDRSNQR�@QD�DMSHSKDC�SN�SGD�ADMDƥS�of capital growth of their Apartment from the date of entering the Apartment Purchase Contract to the date of settlement). Investors should also note that the forecast investment return for an individual Investor, which is capped at the maximum cash CHRSQHATSHNM�O@X@AKD�NE��NE�SGD�OQHBD�NE�SGD� O@QSLDMS�OTQBG@RD��will depend on the list price of the particular Apartment acquired.

&ODVV�'��8QLWV�

A sample forecast investment return, based on a full return @U@HK@AKD�NUDQ�@��LNMSG�ODQHNC�ENQ�NMD�#��"K@RR�4MHS�@BPTHQDC�ENQ�ʙ��HR�RDS�NTS�ADKNV�

The above example represents the maximum capped return that a GNKCDQ�NE�@�#��"K@RR�4MHS�VNTKC�AD�DMSHSKDC�SN�QDBDHUD

,PSRUWDQW�QRWH��WKH�DERYH�ƲJXUHV�DUH�LQGLFDWLYH�RQO\�Ř�,QYHVWRUV�VKRXOG�UHIHU�WR�their particular Apartment Purchase Contract to determine their maximum capped return entitlement.

6.4 Investment returns are capped at a maximum amount(MUDRSNQR�GNKCHMF�#��"K@RR�4MHSR�@QD�DMSHSKDC�SN�@�RG@QD�NE�#DUDKNOLDMS�/QNƥSR�B@OODC�@S�@�L@WHLTL�NE��NE�B@OHS@K�invested on a per annum basis. This return entitlement comprises @�ƥWDC�O@XLDMS�NE��NE�SGD�4MHS�OQHBD�ODQ�@MMTL��VHSG�RTBG�distribution paid to the holder annually) and a return out of #DUDKNOLDMS�/QNƥSR�B@OODC�@S�@�L@WHLTL�NE��NE�SGD�4MHS�price per annum for the term in which they hold their D1 Class 4MHS �'NVDUDQ��(MUDRSNQR�GNKCHMF�#��"K@RR�4MHSR�@QD�DMSHSKDC�SN�receive their return entitlements in priority to holders of A1 to C1 "K@RR�4MHSR

The investment returns that Investors holding A1 to C1 Class 4MHSR�@QD�DMSHSKDC�SN�@QD�B@KBTK@SDC�@R�ADHMF�TO�SN��NE�SGD�KHRS�OQHBD�NE�SGD� O@QSLDMS�OTQBG@RDC��A@RDC�NM�OQHBD�HM� O@QSLDMS�Purchase Contract).

6.5 Investment returns may be lower than maximum capped amountThe investment returns that Investors are entitled to on their 4MHSR�L@X�SGDQDENQD�AD�KNVDQ�SG@M�SGD�L@WHLTL�B@OODC�@LNTMSR�HE�SGDQD�@QD�MNS�RTƧBHDMS�#DUDKNOLDMS�/QNBDDCR�ENQ�(MUDRSNQR�SN�receive an investment return at the maximum capped amount.

3GDQDENQD��@M�(MUDRSNQRŗ�DMSHSKDLDMS�SN�QDBDHUD�@�QDSTQM�NM�@�pre-tax basis that is equal to their maximum capped return entitlement is contingent upon the success of the Development @MC�SGDQD�ADHMF�RTƧBHDMS�#DUDKNOLDMS�/QNBDDCR�SN�OQNUHCD�RTBG�QDSTQMR �(E��ENQ�@MX�QD@RNM�VG@SRNDUDQ��SGDQD�@QD�MNS�RTƧBHDMS�Development Proceeds for the maximum return entitlements SN�AD�O@HC�SGDM�(MUDRSNQR�HM� ��SN�"��"K@RR�4MHSR�VHKK�RHLOKX�QDBDHUD�@�OQNONQSHNM@SD�RG@QD�NE�#DUDKNOLDMS�/QNƥSR�KDRR�SG@M�SGD�L@WHLTL�B@OODC�QDSTQM�@LNTMSR��@MC�Q@MJHMF�ADGHMC� #��"K@RR�4MHSR�

Furthermore, Investors are likely to actually receive an amount less than the maximum capped amounts as these amounts are on a pre-tax basis. The Fund will be required to pay tax on FQNRR�OQNƥS�CDQHUDC�EQNL�SGD�#DUDKNOLDMS�@S�SGD�@OOKHB@AKD�corporate tax rate as it is likely to be taxed as a public trading trust. Investors may, however, receive franking credits on their dividends / distributions and depending on their circumstances may be entitled to a rebate. Please refer to Section 12 for further information relating to taxation matters concerning the Fund and Investors.

Rounded to nearest $500

Apartment Type

Typical list price of Apartment Type

15% (rounded)

1 Bed Apartments:

Typical list price is ʙ��

ʙ��

2 Bed Apartments �2S@MC@QC��


ʙ��

2 Bed Apartments �/QDLHTL��


ʙ��

An example of the capped maximum investment returns on 4MHSR�A@RDC�NM��NE�@�SXOHB@K� O@QSLDMS�KHRS�OQHBD�NƤDQDC�SN�Investors is below:

6

Return of Investments Over 24 months

-XO�� -XO�� -XO��

Investment - 25,000

Distribution Yield 1,500 1,500



Total - 25,000 1,500 30,500

IRR ��

* Annualised net return


2NTQBD�NE�%TMCR��@RRTLHMF�L@WHLTL�@LNTMS�Q@HRDC�TMCDQ�SGD�.ƤDQ�

Project Revenues

Key Assumptions and basis for Assumptions

3GD�@ANUD�KHRSDC�ƥM@MBH@K�HMENQL@SHNM�QDK@SHMF�SN�SGD�#QHESVNNC�Project anticipated Development costs, source of funds and project revenues are based on a number of key assumptions. The estimates are based on information and data supplied by consultants to the Investment Manager and on other information and data sourced directly by the Investment Manager.

Accordingly, the Responsible Entity and Investment Manager consider there to be a reasonable basis for making the estimates, as the estimates are supported by reliable information provided by consultants to the project.

Source Amount

.ƤDQ�/QNBDDCR ʙ��

Senior Lender Finance ʙ��

Total ʙ��

Revenues Amount

Apartment Sales, car park sales and other revenue

ʙ��

Total ʙ��

The following is a list of estimated costs associated with the Driftwood Project:

&RVW�,WHP Amount

Land Purchase and associated costs including establishment fee, stamp duty, legal costs and land valuation

ʙ��

Consultant Fees ʙ��

Holding Costs ʙ��

TSGNQHSHDRŗ�"G@QFDR�@MC�Infrastructure Contributions

ʙ��

Marketing, advertising and sales commissions

ʙ��

"NMRSQTBSHNM�BNRSR��HMBKTCHMF�escalation)

ʙ��

%HM@MBD�BNRSR��HMBKTCHMF�HMSDQDRS�and associated fees)

ʙ��

/QNIDBS�"NMSHMFDMBX��NE�construction costs)

ʙ��

Project Management / Development Management Fees

ʙ��

Investment Manager fees ʙ��

Fund costs, insurance, audit, compliance and sundry costs

ʙ��

Total ʙ��

6

6.8 Project Cost Summary

6.6 Investors entitled to capital appreciation of Apartment achieved by completion of DevelopmentInvestors are entitled to any notional capital appreciation for an (MUDRSNQŗR�OTQBG@RDC� O@QSLDMS�SG@S�NBBTQR�ADSVDDM�SGD�C@SD�NE�SGD�(MUDRSNQ�DMSDQHMF�HMSN�SGD� O@QSLDMS�/TQBG@RD�"NMSQ@BS��@R�determined by the Apartment purchase price) and the date of completion of the Development.

6.7 Construction CostsBased on the elemental costing of the construction costs for the Development, as provided to the Investment Manager by the appointed builder for the Development, the total construction costs @QD�DRSHL@SDC�@S�ʙ��HMBKTRHUD�NE�L@HM�VNQJR��CDLNKHSHNM��landscape and external works and works beyond the lot.

Important Note: �ƥWDC�OQHBD�ATHKCHMF�BNMSQ@BS�G@R�MNS�XDS�ADDM�executed and hence the actual construction contract may vary EQNL�SGHR�@LNTMS � �BNMSHMFDMBX�NE��G@R�ADDM�@KKNVDC�HM�feasibility analysis.

Note: Certain costs are not payable until Development completion.


6.9.1 Project Costs

�@��+@MC�/TQBG@RD�@MC�@RRNBH@SDC�BNRSR

These costs include the cost of purchasing the property from the existing vendor and the reimbursement of property related costs and the contract procurement fee payable to DOF No 1 Pty +SC��SNS@KKHMF�ʙ��DWBK�&23� �3GDQD�HR�@KRN�SGD�@MSHBHO@SDC�DRS@AKHRGLDMS�EDD�NE�ʙ��@MSHBHO@SDC�RS@LO�CTSX�BNRSR�NE�ʙ��@MC�@M�@LNTMS�ENQ�NSGDQ�BNRSR�HMBKTCHMF�KDF@K�@MC�K@MC�U@KT@SHNM�BNRSR�DRSHL@SDC�@S�ʙ��

�A��"NMRTKS@MS�%DDR

This estimate includes costs of external expert consultants such @R�@QBGHSDBSR��DMFHMDDQR��HMBKTCHMF�RSQTBSTQ@K�@MC�BHUHK��LDBG@MHB@K��GXCQ@TKHB�DMFHMDDQHMF��SNVM�OK@MMHMF��SQ@ƧB�DMFHMDDQHMF��RTQUDXNQR��ATHKCHMF�BDQSHƥB@SHNM�@MC�NSGDQ�MDBDRR@QX�SGHQC�O@QSX�consultants as reasonably required. It does not include project management or development management.

�B��'NKCHMF�"NRSR

Property holding costs are based on assumed rates and land tax applicable to the Property.

�C�� TSGNQHSHDR��"G@QFDR�@MC�(MRTQ@MBD

These costs include amounts payable to Mackay Regional Council for operational works permits, council infrastructure charges, and contributions allowances. In general, these amounts relate to the amounts payable by a developer for either using existing water and sewerage infrastructure or for developing new such infrastructure.

�D��,@QJDSHMF��@CUDQSHRHMF�@MC�R@KDR�BNLLHRRHNMR

This estimate assumes marketing and advertising spend of ʙ��@MC�R@KDR�BNLLHRRHNMR�ENQ�R@KDR�NE�SGD� O@QSLDMSR�A@RDC�NM��NE�FQNRR�R@KDR�QDUDMTD�@R�ADHMF�ʙ�� 3GD�marketing spend will be required for the purpose of generating purchaser demand and to achieve Apartment sales targets.

�E��"NMRSQTBSHNM

The construction costs estimates are based on the elemental costing for the construction of the apartment complex comprised in the Development, as provided to the Investment Manager by the builder appointed for the Development, RCQ Construction.

The elemental costing provided by RCQ Construction detailed BNMRSQTBSHNM�BNRSR�SNS@KKHMF�ʙ�� 3GD�(MUDRSLDMS�,@M@FDQ�G@R�@CCDC�@OOQNWHL@SDKX�ʙ��SN�SGHR�@LNTMS�SN�cover additional contingencies.

�F��%HM@MBD�"NRSR

3GD�ƥM@MBD�BNRSR�DRSHL@SD�HMBKTCDR��

� HMSDQDRS�BG@QFDR��ADHMF�ʙ��

� DRS@AKHRGLDMS�EDDR�NE��NE�SGD�E@BHKHSX�KHLHS��ADHMF�ʙ��

� DPTHSX�@QQ@MFDLDMS�EDDR�B@KBTK@SDC�@S�� NE�@LNTMS�Q@HRDC��ADHMF�ʙ��

� CDAS�@QQ@MFDLDMS�EDDR�B@KBTK@SDC�@S�� NE�@LNTMS�Q@HRDC��ADHMF�ʙ��

These amounts assume the maximum amount is raised under SGD�.ƤDQ�@MC�VHKK�U@QX�CDODMCHMF�NM�SGD�B@OHS@K�RSQTBSTQD�NE�the approval, which in turn is dependent on the level of funding provided by a senior funder to the project.

�G��/QNIDBS�"NMSHMFDMBX

�OQNIDBS�BNMSHMFDMBX�@S�� NE�BNMRSQTBSHNM�BNRSR�DRSHL@SD��ADHMF�ʙ��

�H��/QNIDBS�,@M@FDLDMS��#DUDKNOLDMS�,@M@FDLDMS�costs and fees

M�@KKNV@MBD�NE�� NE�SNS@K�CDUDKNOLDMS�BNRSR��@OOQNWHL@SDKX�ʙ�� 3GDRD�BNRSR�VHKK�BNUDQ�OQNEDRRHNM@K�OQNIDBS�@MC�development services for the project duration.

�I��(MSDQDRS�@MC�%HM@MBD�"G@QFDR

3GHR�DRSHL@SD�@RRTLDR�HMSDQDRS�BG@QFDR�@S�� OKTR�EDDR�@MC�bank charges.

6.9.2 Source of Funds

The source of funds estimates completion of the capital raising TMCDQ�SGHR�.ƤDQ�@MC�NAS@HMHMF�A@MJ�ƥM@MBD�EQNL�@�2DMHNQ�+DMCDQ

6.9.3 Project Revenues

3GD�@MSHBHO@SDC�QDUDMTDR�NE�ʙ��@QD�A@RDC�NM��R@KDR�of Apartments in the Development at sales prices based on the list price that the Development Manager will aim to achieve, sale of management rights and surplus parking spaces.

66.9 Further Information outlining the Assumptions


Corporate Governance & Management Team

7.

ADVISORYBOARD

INVESTMENTCOMMITTEE

BOARD OFDIRECTORS

RESPONSIBLE ENTITY

FUTURE ESTATEAUSTRALIAN RESIDENTIAL

PROPERTY FUND

DRIFTWOODPROJECT

INVESTMENT MANAGERFUTURE FUNDS

MANAGEMENT P/LAXIAS FUNDS LTD

DEVELOPMENT MANAGER

EQUITY UP TO $10M

FUND

SERVICE PROVIDERS

CORPORATE GOVERNANCE

FUND ASSETS

COMPLIANCE& CORPORATEGOVERNANCE

DELEGATED AUTHORITY

DELEGATED AUTHORITY

SERVICEAGREEMENT

SERVICEAGREEMENT

PAYMENT AUTHORISATION

HOLDS FUND ASSETSAS CUSTODIAN

CLASSASSETS

COMPLIANCECOMMITTEE

FUTURE ESTATEGROUP P/L

CUSTODIANTHE TRUST

COMPANY LTD


7.1 Responsible EntityAxias Funds Ltd is an unlisted public company which holds Australian Financial Services Licence no. 327340 authorising it to act as responsible entity of the Fund.

As the Responsible Entity of the Fund, Axias Funds Ltd will be responsible for ensuring the Fund is operated in accordance with best practice corporate governance principles, and shall perform the functions conferred on it by the Constitution and comply with its duties under the Corporations Act. The Investment Manager is responsible for primary operational and management control for the Fund.

7.2 Investment Manager%TSTQD�%TMCR�,@M@FDLDMS�/SX�+SC�� "-��HR�SGD�Investment Manager for the Fund.

Future Funds Management is responsible for assisting the Responsible Entity with the day to day management of the Fund and is a Corporate Authorised Representative of the Responsible Entity.

Future Funds Management is a specialist property funds manager, with a particular focus on the residential development sector. Future Funds Management combines the detailed local knowledge of its team of property specialists with perspectives gained through rigorous and extensive market research to identify compelling risk-mitigated opportunities. Future Funds Management has experience and demonstrated capability in all aspects of property markets and property funds management.

3GD�(MUDRSLDMS�,@M@FDQŗR�JDX�ODQRNMMDK�HMBKTCDR�

7.3 Fund ManagerMr. Ben Anderson (LLB. B.Comm, MAICD)

Ben Anderson has over a decade of technical and hands-on experience in property funds management, investment banking, and all aspects of property development and investment. Ben is the founder and Managing Director of Future Estate Group, a KD@CHMF�QDRHCDMSH@K�OQNODQSX�HMUDRSLDMS�@MC�@CUHBD�ƥQL�NƤDQHMF�innovative and client focused investment solutions and advice SN�ƥM@MBH@K�OK@MMDQR��@BBNTMS@MSR��LNQSF@FD�AQNJDQR�@MC�SGDHQ�clients and private individuals.

3GQNTFG�GHR�OQDUHNTR�@OONHMSLDMSR�@S�,DQQHKK�+XMBG��(MUDRSLDMS�!@MJHMF��@MC�-@SHNM@K� TRSQ@KH@�!@MJ��RSQTBSTQDC�OQNODQSX�ƥM@MBD�OQNODQSX�DPTHSX��@CUHRNQX��!DM�G@R�CDLNMRSQ@SDC�@�successful track record in structuring, executing and managing OQNODQSX�@MC�QDK@SDC�ƥM@MBHMF�SQ@MR@BSHNMR �

!DMŗR�DWODQHDMBD�HMBKTCDR�OQNODQSX�ETMCR�L@M@FDLDMS��development management, research and investment advisory, fund and capital structuring, asset management and corporate advisory to top-tier property clients managing multi-billion dollar property portfolios.

Ben holds a Bachelor of Laws and Bachelor of Commerce with L@INQR�HM� BBNTMSHMF�@MC�%HM@MBD�EQNL�#D@JHM�4MHUDQRHSX �!DM�has also undertaken executive training programs at Princeton

4MHUDQRHSX �!DM�HR�@KRN�@�LDLADQ�NE�SGD� TRSQ@KH@M�(MRSHSTSD�NE�Company Directors.

7.4 Development Manager%TSTQD�$RS@SD�&QNTO�/SX�+SC�� "-��HR�SGD�Development Manager for the Fund.

Future Estate is focused on achieving superior above-market returns on a risk-adjusted basis for our clients and investors. Future Estate is focused on delivering returns by superior research and analysis, stringent risk management, focused asset management and best-practice corporate governance.

Mr. Mark Anderson

Mark Anderson has a background in both client side and contractor side project and development management, having studied a Diploma of Building and Bachelor of Applied Science �"NMRSQTBSHNM�,@M@FDLDMS��@S�1,(3�4MHUDQRHSX �

Mark has a successful transactional history in both Australia and SGD�4MHSDC�*HMFCNL��G@UHMF�RTBBDRRETKKX�CDKHUDQDC�NUDQ�ʙ��L�of projects. These range from private hospitals and commercial refurbishments in Melbourne to Grade 1 heritage listed private residences in London.

,@QJŗR�DWODQHDMBD�HMBKTCDR�ANSG�BNMRSQTBSHNM�OQNIDBS�management for tier 1 construction companies and client side project and development management for both listed companies and private clients.

7.5 Advisory BoardThe Fund has appointed an Advisory Board comprising a majority NE�HMCDODMCDMS�LDLADQR�VHSG�RHFMHƥB@MS�DWODQHDMBD�@MC�track record in all facets of the property industry from funds management, investment, advisory, development, legal banking @MC�OQNODQSX�ƥM@MBD ��

The purpose of the Advisory Board is to provide additional external corporate governance to the business, in particular the managed funds. The Advisory Board is advised of all material matters and is responsible for strategic advice and input on material investment decisions. The Advisory Board meets monthly.

The Advisory Board includes:

Mr. Mark Hamilton

Mark has over 20 years of investment banking experience where he has developed extensive origination, structuring and execution skills across a wide variety of merger and acquisitions, equity capital market and debt capital market transactions primarily ENBTRDC�NM�SGD�QD@K�DRS@SD�RDBSNQ �,@QJŗR�OQDUHNTR�DWODQHDMBD�includes senior executive investment banking roles with National Australia Bank, Merrill Lynch, Goldman Sachs JBWere and ABN Amro. Mark has extensive equity capital markets experience and expertise where he has advised on the structuring and raising NE�HM�DWBDRR�NE�ʙ��AHKKHNM�NE�B@OHS@K�ENQ�ANSG�KHRSDC�@MC�TMKHRSDC�QD@K�DRS@SD�UDGHBKDR��VHSG�RHFMHƥB@MS�BQNRR�ANQCDQ�SQ@MR@BSHNM�DWODQHDMBD �,@QJ�G@R�@M�,! �EQNL�"NKTLAH@�4MHUDQRHSX�&Q@CT@SD


72BGNNK�NE�!TRHMDRR�Ŕ�-DV�8NQJ��-8��@�!@BGDKNQ�NE� QSR��! ��Ŕ�$BNMNLHBR�EQNL�SGD�4MHUDQRHSX�NE�/DMMRXKU@MH@�Ŕ�/GHK@CDKOGH@��/ ��@MC�HR�@�1D@KSX�%NTMC@SHNM�NE�-DV�8NQJ�2BGNK@Q

Phillip Grundy

Phillip is a Director at Pointon Partners Lawyers, practising in the areas of Corporate and Commercial law. His areas of expertise include mergers and acquisitions, capital raisings, ƥM@MBH@K�RDQUHBDR��OQNODQSX�@MC�BNLLDQBH@K�SQ@MR@BSHNMR �/GHKKHOŗR�PT@KHƥB@SHNMR�HMBKTCD�@�,@RSDQ�NE�+@VR��"NLLDQBH@K�+@V��EQNL�,NM@RG�4MHUDQRHSX�@MC�@�!@BGDKNQ�NE�+@VR��'NMR��@MC�!@BGDKNQ�NE� QSR�EQNL�#D@JHM�4MHUDQRHSX

Details of the Advisory Board can be found on www.futurefundsmanagement.com.au.

7.6 Strengths of the Management Team � Track record;

� Market knowledge;

� Solution and outcome focused;

� Professional and ethical in all of our actions;

� /QNOQHDS@QX�CD@K�ƦNV�SGQNTFG�DWSDMRHUD�L@QJDS�QDK@SHNMRGHOR�

� Strong relationships with major lenders and investors;

� Development Management, Project Management and Construction expertise;

� Funds Management and Asset Management expertise;

� In-house Research Team and proprietary quantitative market analysis and prediction models;

� Structured Finance, Commercial and Investment Banking expertise;

� Stringent processes and support systems in place and compliance checks in place; and

� Best practice corporate governance.

7.7 Board of Directors of Responsible Entity

Mr. Ben Anderson (LLB. B.Comm, MAICD)

Refer to the above.

0U��*UDQW�)UHHPDQ��0%$��0ƲQ��

Grant Freeman was one of the founders of Axias Funds Ltd. He V@R�OQDUHNTRKX�SGD�,@M@FHMF�#HQDBSNQ�NE�"@RHLHQ�"@OHS@K�� RH@�/@BHƥB��@MC�@M�DWDBTSHUD�CHQDBSNQ�ENQ�3Q@MRNBD@M�2DBTQHSHDR�/SX�Ltd. Both companies are boutique investment banking groups.

&Q@MS�HR�BTQQDMSKX�@�CHQDBSNQ�NE�"NUD�1DRNTQBDR�+SC�� 27��"5$��@�LHMHMF�DWOKNQ@SHNM�BNLO@MX�KHRSDC�NM�SGD� 27 �2HMBD�FQ@CT@SHMF�EQNL�!NMC�4MHUDQRHSX�VHSG�@�,@RSDQ�NE�%HM@MBD�@MC�,@RSDQ�NE�Business Administration, Grant has completed many corporate, debt and equity transactions in Australia, Africa, North America and Europe.

Mr. Paul Anderson

Paul Anderson was also one of the founders of Axias Funds Ltd and is a licensed real estate agent/auctioneer in NSW and registered Licensed Building Practitioner in NSW. Paul has held CHQDBSNQ�@MC�NVMDQRGHO�QNKDR�HM�RDUDQ@K�4*�@MC� TRSQ@KH@M�A@RDC�companies in the construction industry and has been responsible ENQ�NUDQ�ʙ��LHKKHNM�HM�QDRHCDMSH@K�OQNODQSX�DMG@MBDLDMSR�HM� TRSQ@KH@�@MC�SGD�4* �/@TK�G@R�DWSDMRHUD�DWODQHDMBD�HM�SGD�negotiation and management of large projects including building organisational capability, training and safety management, quality control and cost management.

7.8 CustodianThe Trust Company Limited ABN 59 004 027 743 is the Custodian of the Fund and has been appointed by the Responsible Entity to act as an independent Custodian to hold and maintain the assets of the Fund and to act on proper instructions from the Responsible Entity pursuant to a Custody Deed between the Responsible Entity and the Custodian dated 5 December 2008. The Custodian shall be entitled to payment of its fees for providing such services to the Fund as are set out in Section 10 of this PDS.

7.8 Compliance CommitteeThe Corporations Act requires that the Responsible Entity establish a compliance committee if less than half of the directors of the Responsible Entity are external directors. The compliance committee must comprise a majority of external directors.

R�KDRR�SG@M�G@KE�NE�SGD�1DRONMRHAKD�$MSHSXŗR�CHQDBSNQR�@QD�DWSDQM@K��the Fund has appointed a compliance committee for the Fund. The compliance committee comprises a majority of independent representatives.

3GD�"NLOKH@MBD�.ƧBDQ�NE�SGD�%TMC�HR�,Q � RGKDX�"NTQRD��@�PT@KHƥDC�@TCHSNQ�@MC�@BBNTMS@MS�VHSG�@M�DWSDMRHUD�A@BJFQNTMC�HM�ƥM@MBH@K�services, in particular auditing and compliance-related aspects.

The compliance committee will monitor and report on the operation of the compliance plan and any contraventions of the plan, and must report to the responsible entity, and in certain circumstances, to ASIC.

Mr. Ashley Course

RGKDX�HR�SGD�"NLOKH@MBD�.ƧBDQ�ENQ�%TSTQD�$RS@SD�@MC�TMCDQKXHMF�managed funds. Ashley specialises in the provision of auditing, compliance and assurance services and is responsible for ensuring best practice corporate governance, compliance culture and process. Ashley commenced in the compliance and assurance industry over 12 years ago and has a broad range of technical DWODQHDMBD � RGKDXŗR�LNRS�QDBDMS�DWODQHDMBD�HMUNKUDR�ADHMF�O@QS�NE�SGD�3QD@RTQXŗR�2SQNMFDQ�2TODQ�6NQJHMF�&QNTO�OQNUHCHMF�QDBNLLDMC@SHNMR�SN�SGD� TRSQ@KH@M�&NUDQMLDMS � RGKDXŗR�experience also extends to designing audit software for both commercial and private purposes, training the CPA Australia Quality Reviewers on Auditing and Professional Standards and lecturing in TCHS�@MC�1HRJ�,@M@FDLDMS�@S�!NMC�4MHUDQRHSX�NM�SGD�&NKC�"N@RS


Investor InformationKey Disclosures and ASIC Benchmarks

8.

8.1 ASIC Regulatory Guide 46 – Unlisted Property Schemes

ASIC Regulatory Guide 46 provides guidance as to the key principles for disclosure to retail investors in the unlisted property sector. ASIC requires responsible entities of unlisted property managed investment schemes to provide a statement addressing eight disclosure principles.

The Fund is an unlisted property scheme as it is an unlisted managed investment scheme that has or is likely have at least

��NE�HSR�MNM�B@RG�@RRDSR�HMUDRSDC�HM�QD@K�OQNODQSX�@MC�NQ�HM�unlisted property schemes.

3GD�%TMCŗR�ONKHBHDR�@MC�QDRONMRDR�SN�SGD�RHW�ADMBGL@QJR�@MC�eight disclosure principles set out in Regulatory Guide 46 are set out below:

DisclosurePrinciple &Benchmark

Background Fund Policy

Gearing ratio The gearing ratio indicates the DWSDMS�SN�VGHBG�SGD�%TMCŗR�@RRDSR�are funded by interest bearing liabilities.

3GD�GHFGDQ�SGD�%TMCŗR�FD@QHMF�ratio the higher reliance it has NM�DWSDQM@K�KH@AHKHSHDR��RTBG�@R�borrowings) to fund assets.

In addition, the higher the gearing ratio the more exposed the Fund will be to increases in funding costs �HMSDQDRS�Q@SD�QHRDR��@MC�CDBQD@RDR�in property values. A high gearing ratio also means the Fund will have KDRR�NE�@M�@RRDS�ATƤDQ�SN�QDKX�NM�HM�SHLDR�NE�ƥM@MBH@K�RSQDRR

The Fund maintains a gearing policy that governs the level of gearing for the Fund. The Fund will comply with the gearing policy for the Driftwood Project. The Fund meets this Benchmark.

The Fund intends to source borrowings from Senior Lender in order to ƥM@MBD�@�#DUDKNOLDMS�/QNIDBS �

The Fund will establish a subsidiary to carry out and undertake the Development Project. It is intended that this subsidiary shall source borrowings for the Development Project and provide security over the property and its assets and undertaking in order to secure RTBG�ƥM@MBD

It is intended that any such borrowings be limited recourse; limited to the Development Project to which the borrowings relate and the NSGDQ�@RRDSR�@RRNBH@SDC�VHSG�SG@S�"K@RR�NE�4MHSR

3GD�@MSHBHO@SDC�+51�Q@SHN�ENQ�@�#DUDKNOLDMS�TMCDQS@JDM�AX�@�RTARHCH@QX�NE�SGD�%TMC�VHKK�AD�MN�FQD@SDQ�SG@M��NE�SGD�U@KTD�NE� SGD�"K@RR� RRDSR �'NVDUDQ��SGD�%TMCŗR�L@WHLTL�FD@QHMF�Q@SHN�@R�@F@HMRS�"K@RR� RRDSR�VHKK�AD��

The gearing ratio may vary on a Class by Class basis.

Actual site photo.


8DisclosurePrinciple &Benchmark


Interest &RYHU�5DWLR�& Interest &DSLWDOLVDWLRQ

The interest cover ratio measures the ability of the scheme to service debt from earnings.

(S�HR�@�BQHSHB@K�HMCHB@SHNM�NE�@�RBGDLDŗR�ƥM@MBH@K�GD@KSG�@MC�JDX�SN�@M@KXRHMF�the sustainability and risks associated VHSG�SGD�RBGDLDŗR�KDUDK�NE�ANQQNVHMF �

The lower the interest cover, the higher the risk that the scheme will not be able to meet its interest expense. A scheme with a low interest cover ratio only needs a small reduction HM�D@QMHMFR��NQ�@�RL@KK�HMBQD@RD�HM�interest rates or other expenses) to be unable to meet its interest expense.

ASIC Regulatory Guide 46 benchmarks include the Responsible Entity maintaining and complying with a written policy for its level of interest cover, and include a benchmark that the interest expense of a scheme not be capitalised.

A subsidiary of the Fund will undertake Development Projects to VGHBG�@�"K@RR�NE�4MHSR�HM�SGD�%TMC�QDK@SDR

A subsidiary of the Fund established to carry out the Development Project will obtain borrowings, and such borrowings will be interest bearing debt.

It is expected that any borrowings obtained in connection with a Development Project will be interest only and will provide for interest to be capitalised and repayment on completion of the loan term �@MSHBHO@SDC�SN�AD�@KHFMDC�VHSG�BNLOKDSHNM�NE�SGD�#DUDKNOLDMS� �3GD�borrowings plus capitalised interest will be paid out of sales from properties comprised in the Development Project. On this basis, it is anticipated that the interest cover ratio for Development Projects conducted by the Fund will be zero. Accordingly, the Fund does not have an interest cover policy for the Driftwood Project and will not meet this benchmark.

Nevertheless, the interest cover ratio will be determined on a case by case basis for each Development Project, and may depend on the structure of the Development Project being undertaken.

Interest will be capitalised, therefore the Fund does not meet this benchmark.

The Fund has budgeted to fund the ongoing distribution yields O@X@AKD�NM�#��"K@RR�4MHSR

Scheme Borrowings

!NQQNVHMFR�B@M�G@UD�@�RHFMHƥB@MS�impact on the viability of a scheme.

Relatively short-term borrowings and credit facilities with short expiry dates are a risk factor if they are used to fund assets intended to be held long term. A failure to renew borrowing or BQDCHS�E@BHKHSHDR�B@M�@CUDQRDKX�@ƤDBS�@�RBGDLDŗR�UH@AHKHSX

(E�SGD�RBGDLD�G@R�@�RHFMHƥB@MS�proportion of its borrowings that mature within a short timeframe, it VHKK�MDDC�SN�QDƥM@MBD �3GDQD�HR�@�QHRJ�SG@S�SGD�QDƥM@MBHMF�VHKK�AD�NM�KDRR�favourable terms or not available at all. (E�SGD�RBGDLD�B@MMNS�QDƥM@MBD��HS�L@X�need to sell assets on a forced sale basis with the risk that it may realise a capital loss.

Breach of a loan covenant may result in penalties being applied, or the loan becoming repayable immediately. 3GD�RBGDLD�L@X�MDDC�SN�QDƥM@MBD�NM�less favourable terms or sell assets. 3DQLHM@SHNM�NE�BQHSHB@K�ƥM@MBHMF�BNTKC

The Fund intends for its subsidiary carrying out the Development /QNIDBS�SN�NAS@HM�ƥM@MBD�EQNL�@�2DMHNQ�+DMCDQ�ENQ�SGD�OTQONRD�NE�undertaking a Development.

(S�HR�HMSDMCDC�SG@S�@MX�ƥM@MBD�NAS@HMDC�VHKK�AD�KHLHSDC�QDBNTQRD�SN�@MX�@RRDSR�NE�SGD�%TMC�VGHBG�QDK@SD�SN�SGD�"K@RR�HM�VGHBG�ƥM@MBD�HR�ADHMF�sought from the Senior Lender.

It is also intended that any loans obtained for the purpose of a Development Project will be for 18 to 36 months, so as to ensure that the loan term is in line with the anticipated Development timeframes.

For borrowings obtained, the Fund will disclose to its Investors via its half yearly reporting the following details:

Item Disclosure

Borrowings that mature in 5 years or less

The aggregate amount owing and the maturity OQNƥKD�HM�HMBQDLDMSR�NE�MNS�LNQD�SG@M��LNMSGR

Borrowings that mature in more than 5 years

The aggregate amount owing

Credit facilities The aggregate undrawn amount, the assets to which the facility relates, the loan to value ratio and interest cover covenants under the facility, the interest rate of the facility and whether the facility is hedged.




Scheme Borrowings

continued...

also mean the scheme is no longer viable.

The Fund will also disclose to Investors the amount by which the value of its property assets or other assets used for security for the loan facility must fall before the scheme will breach any covenants in any credit facility.

Investors should be aware that amounts owing to creditors and KDMCDQR�NE�SGD�RBGDLD�VHKK�Q@MJ�ADENQD�@M�(MUDRSNQŗR�HMSDQDRSR�HM�SGD�scheme.

.M�@M�NMFNHMF�A@RHR��(MUDRSNQR�NE�@�"K@RR�NE�4MHSR�VHKK�@KRN�AD�OQNUHCDC�with information concerning scheme borrowings including any breaches of loan covenants.

Where borrowings and credit facilities are due to mature within 12 months, the Fund will disclose to the Investors information BNMBDQMHMF�SGD�OQNRODBSR�NE�QDƥM@MBHMF�NQ�NSGDQ�@KSDQM@SHUD�@BSHNMR�SN�address funding requirements and liabilities.

Portfolio 'LYHUVLƩFDWLRQ

ASIC requires a scheme operator to disclose the current composition of SGD�OQNODQSX�RBGDLDŗR�CHQDBS�OQNODQSX�HMUDRSLDMS�ONQSENKHN��HMBKTCHMF�information such as geographic KNB@SHNM��OQNODQSHDR�HM�CHƤDQDMS�sectors, recent valuations, occupancy rates and so forth).

Generally, it is considered that the LNQD�CHUDQRHƥDC�@�ONQSENKHN�HR��SGD�lower the risk that an adverse event @ƤDBSHMF�NMD�OQNODQSX�NQ�NMD�KD@RD�will put the overall portfolio at risk. A concentration of development assets in a scheme exposes investors to increased risks involved in the development of property assets.

The structure and strategy of the Fund is such that Investors will @BPTHQD�@�"K@RR�NE�4MHSR�SG@S�QDK@SD�RNKDKX�SN�NMD�#DUDKNOLDMS�/QNIDBS �There will be one property in each Development Project. Therefore, (MUDRSNQR�VHKK�MNS�G@UD�SGD�ADMDƥS�NE�ONQSENKHN�CHUDQRHƥB@SHNM

M�HMUDRSLDMS�HM�@�O@QSHBTK@Q�"K@RR�NE�4MHSR�VHKK�MNS�OQNUHCD�(MUDRSNQR�VHSG�@M�HMUDRSLDMS�HM�@�CHUDQRHƥDC�ONQSENKHN�NE�@RRDSR�NQ�DUDM�OQNUHCD�Investors with an interest in other Development Projects being TMCDQS@JDM�AX�SGD�%TMC�@MC�SN�VGHBG�NSGDQ�"K@RRDR�NE�4MHSR�QDK@SD

3GD�K@BJ�NE�CHUDQRHƥB@SHNM�L@X�AD�BNMRHCDQDC�@�RHFMHƥB@MS�QHRJ�E@BSNQ�for an Investor in the Fund.

Investors will be kept informed of the progress of the Development on an ongoing basis, including the progress of a Development as against the development timetable.

Valuation Policy

Investing in a property scheme exposes investors to movements in SGD�U@KTD�NE�SGD�RBGDLDŗR�@RRDSR �The value of real property assets can be volatile, particularly when access to credit is constrained and more properties are on the market. A RHFMHƥB@MS�E@KK�HM�U@KT@SHNM�VHKK�LD@M�an increase in gearing ratio and may trigger a breach of loan covenants.

Investors therefore need information to assess the reliability of valuations. The more reliable a valuation, the more likely the asset will return that amount when it is sold. However, any forced sale is likely to result in a

The Fund meets this benchmark.

3GD�%TMCŗR�ONKHBX�HR�SN�NAS@HM�@M�HMCDODMCDMS�U@KT@SHNM�NE�D@BG�OQNODQSX�acquired by the Fund for the purpose of a Development Project.

In certain circumstances, the purchase price of a property may be CHƤDQDMS�SN�SGD�U@KT@SHNM��HM�VGHBG�B@RD�VD�RG@KK�DWOK@HM�SGD�QD@RNMR�for this and why the purchase is nevertheless commercially sound.

The Fund will obtain valuations of its properties where required by its Constitution or by accounting standards.

3GD�%TMCŗR�ONKHBX�VHSG�QDRODBS�SN�U@KT@SHNMR�ETQSGDQ�QDPTHQDR�SG@S��

� SGD�U@KTDQ�AD�HMCDODMCDMS��@OOQNOQH@SDKX�PT@KHƥDC�@MC�QDFHRSDQDC�

� SGD�U@KTDQ�MNS�G@UD�@�BNMƦHBS�NE�HMSDQDRS�

� SGD�%TMC�TRD�CHƤDQDMS�HMCHUHCT@K�U@KTDQR�@BQNRR�CHƤDQDMS�Development Projects where appropriate and possible on a case-by-case basis;

8




Valuation Policy

continued...

shortfall compared to the valuation unless the valuation has been made on a forced sale basis.

The ASIC Benchmark requires a Responsible Entity to maintain a 5@KT@SHNM�/NKHBX�SG@S�BNLOKHDR�VHSG�Regulatory Guide 46.

� valuations of property assets be obtained at or prior to acquisition of a property. In the unlikely circumstance where a property may be valued after acquisition, an appropriate adjustment mechanism be agreed with the relevant vendor so that the Fund ultimately only pays a purchase price that accords with market valuation;

� a valuation used and relied upon in support for a property acquisition shall not be used if more than 6 months old;

� it is intended that independent valuations be obtained before a property is purchased, in which case if it is a development OQNODQSX�SGD�U@KT@SHNM�HR�SN�AD�NM�@M�Ŗ@R�HRŗ�@MC�Ŗ@R�HE�BNLOKDSDŗ�A@RHR��@MC�ENQ�@MX�NSGDQ�OQNODQSX�NM�@M�Ŗ@R�HRŗ�A@RHR�

� an independent valuation is to be obtained within 3 months after directors form a view that there is a likelihood that there has been a material change in the value of the property.

Related party transactions

Related party transactions carry a risk that they could be assessed and LNMHSNQDC�KDRR�QHFNQNTRKX�SG@M�@QLŗR�length third party transactions.

ASIC expects that responsible entities that enter into transactions with related parties describe related party arrangements relevant to the investment decision, including information relating to the value NE�SGD�ƥM@MBH@K�ADMDƥS��M@STQD�of the relationship, whether the @QQ@MFDLDMS�HR�NM�@QLŗR�KDMFSG�terms, whether member approval has been sought, risks associated with the arrangement and whether the responsible entity is in compliance with its policies on related party transactions.

The ASIC Benchmark requires a Responsible Entity to mantain and comply with a written policy on related party transactions.


The Fund or its subsidiary may engage related parties to provide services to the Fund on a Development Project. If so, the Fund will ensure that the terms of the service arrangements, and the EDDR�O@X@AKD��@QD�NM�@QLŗR�KDMFSG�SDQLR�@MC�@S�NQ�ADKNV�OQDU@HKHMF�industry rates.

In certain circumstances, the Fund or its subsidiary will acquire a property for a Development Project from a related party. Where the Fund or its subsidiaries acquire properties from a related party, the Fund will put in place appropriate arrangements to ensure that the %TMC�HR�@BPTHQHMF�SGD�OQNODQSX�NM�@QLŗR�KDMFSG�SDQLR �

This will include obtaining an independent valuation of the property prior to acquisition. If, for any reason, that is not possible, and the valuation of the property is obtained following acquisition, the Fund and its related party will provide for a market value adjustment arrangement so that shortly after acquisition of the property and BNMƥQL@SHNM�NE�SGD�U@KT@SHNM��@M�@CITRSLDMS�O@XLDMS��NQ�OQNUHRHNM�of some other form of valuable consideration) is made, as between the related party and the Fund. This will ensure that the related O@QSX�SQ@MR@BSHNM�HR�TKSHL@SDKX�NM�@QLŗR�KDMFSG�SDQLR�SG@S�QDƦDBS�SGD�determination of the independent market valuation.

Distribution practices

Some property schemes make distributions partly or wholly from unrealised revaluation gains, capital, borrowings, or support facilities arranged by the responsible entity, rather than solely from cash from operations available for distribution. This may not be commercially


The Fund will only pay distributions from its cash from operations �DWBKTCHMF�ANQQNVHMFR��@U@HK@AKD�ENQ�CHRSQHATSHNM

3GD�%TMC�VHKK�FDMDQ@KKX�HRRTD�4MHSR�NE�@�"K@RR�SG@S�VHKK�MNS�DMSHSKD�SGD�GNKCDQ�SN�@MX�QDSTQMR�NQ�CHRSQHATSHNMR�NM�SGDHQ�4MHSR�TMSHK�BNLOKDSHNM�NE�SGD�#DUDKNOLDMS�@MC�BNMƥQL@SHNM�NE�#DUDKNOLDMS�/QNBDDCR�being attained.

8




Distribution practices

continued...

sustainable over the longer term, particularly when property values are not increasing.

ASIC Benchmark requires the Fund to only pay distributions from its B@RG�EQNL�NODQ@SHNMR��DWBKTCHMF�borrowings) available for distribution.

3GD�%TMC�L@X�HRRTD�4MHSR�NE�@�"K@RR�SG@S�DMSHSKDR�SGD�(MUDRSNQ�SN�distributions on an ongoing basis during the term of a Development /QNIDBS �3GD�#��"K@RR�4MHSR�NƤDQDC�TMCDQ�SGHR�/#2�@QD�@M�DW@LOKD�NE�RTBG�@�"K@RR�NE�4MHSR �'NVDUDQ��HS�HR�LNQD�KHJDKX�SG@S�SGD�%TMC�VHKK�NMKX�HRRTD�4MHSR�VGHBG�G@UD�@M�DMSHSKDLDMS�SN�AD�O@HC�QDSTQMR�NTS�NE�MDS�OQNƥSR�EQNL�@�#DUDKNOLDMS�@S�BNLOKDSHNM�NE�SGD�#DUDKNOLDMS

#HRSQHATSHNMR�VHKK�AD�CDSDQLHMDC�RDO@Q@SDKX�ENQ�D@BG�"K@RR�NE�4MHS �"DQS@HM�"K@RRDR�NE�4MHSR�HRRTDC�ENQ�@�#DUDKNOLDMS�/QNIDBS�VHKK�AD�subject to a capped maximum distribution amount.

It is intended that Fund distributions will be paid out of net income derived from a particular Development Project. Distributions will only be made from realised income generated from a Development Project and not from borrowings and/or unrealised gains. In circumstances where accounting income returned by the Fund exceeds taxable HMBNLD��HM�QDRODBS�NE�@�"K@RR�NE�4MHSR��B@OHS@K�CHRSQHATSHNMR�L@X�AD�made to Investors.

4ONM�QDCDLOSHNM�NE�4MHSR�NM�DWOHQX�NE�SGDHQ�SDQL��(MUDRSNQR�L@X�QDBDHUD�@�B@OHS@K�CHRSQHATSHNM�NM�SGDHQ�4MHSR

Withdrawal arrangements

4MKHRSDC�OQNODQSX�RBGDLDR�NESDM�have limited or no withdrawal rights. 3GHR�LD@MR�SGDX�@QD�TRT@KKX�CHƧBTKS�to exit.

The Fund is not liquid.

Investors have no withdrawal rights.

4MHSR�HM�U@QHNTR�"K@RRDR�HRRTDC�ENQ�O@QSHBTK@Q�#DUDKNOLDMS�/QNIDBSR�VHKK�AD�HRRTDC�VHSG�@�ƥWDC�SDQL��@MC�AD�QDCDDLDC�NM�DWOHQ@SHNM�NE�that term.

Net tangible assets

3GD�MDS�S@MFHAKD�@RRDS��-3 ��backing of a scheme gives investors information about the value of the tangible or physical assets of the scheme. The initial and ongoing NTA A@BJHMF�L@X�AD�@ƤDBSDC�AX�U@QHNTR�factors, including fees and charges paid up-front for the purchase of properties, costs associated with capital raising, or fees paid to the responsible entity or other parties.

(M�BHQBTLRS@MBDR�VGDQD�@MX�NE�SGD�%TMCŗR�OQNIDBSR�NQ�VGDQD�"K@RR�NE�4MHS�NƤDQHMFR�@QD�RSQTBSTQDC�HM�@�L@MMDQ�VGDQDAX�SGDX�@QD�closed end schemes where the value of Fund assets is relevant for CDSDQLHMHMF�SGD�U@KTD�NE�@M�(MUDRSNQŗR�4MHSR��SGD�%TMC�HMSDMCR�SN�disclose the value of the NTA of the Fund or Class Assets on a per 4MHS�A@RHR�HM�OQD�S@W�CNKK@QR

8


Investment Risks

9.

The performance of the Fund and the ultimate value of the Fund are subject to risks. Detailed below are some of the risks that you should be aware of when investing in the Fund and/or acquiring an Apartment in @�#DUDKNOLDMS�/QNIDBS�OTQRT@MS�SN�@M�.ƤDQ ��3GD�QHRJR�set out in this section are not intended to be exhaustive. Prospective Investors should read this PDS in full and seek independent professional advice in order to make an informed decision about investing in the Fund.

“Risk” refers both to the variability and volatility of an HMUDRSLDMS�QDSTQM��SGD�ONRRHAHKHSX�NE�@�ƦTBST@SHNM�NQ�decrease in the amount of income generated, or a lower than expected rate of return) and the likelihood of HMBTQQHMF�@�KNRR�NM�XNTQ�HMUDRSLDMS��SGD�ONRRHAHKHSX�SG@S�you will lose some or the entire initial amount invested).

The Directors, the Responsible Entity, or entities and persons associated with the Responsible Entity do not guarantee the performance of the Fund or the ODQENQL@MBD�NE�4MHSR�NƤDQDC�TMCDQ�SGHR�/#2

The business activities of the Fund are subject to known and unknown risks and there are many factors which may impact the future performance of the Fund. These QHRJR�@QD�ANSG�RODBHƥB�SN�SGD�%TMC�@MC�@KRN�QDK@SD�SN�the general business, legal, construction, property, economic and environmental climate. These risks need to be considered carefully by Investors before L@JHMF�@�CDBHRHNM�SN�@OOKX�ENQ�4MHSR�HM�SGD�%TMC�@R�SGDX�L@X�@CUDQRDKX�@ƤDBS�SGD�U@KTD�NE�SGD�4MHSR�HM�SGD�Fund. Some of these risks can be mitigated by the use of safeguards and appropriate systems, but some are outside the control of the Fund and cannot always be mitigated.

3GD�QHRJ�@RRNBH@SDC�VHSG�@M�HMUDRSLDMS�HM�4MHSR�HM�SGD�%TMC��@MC�@M� O@QSLDMS��B@M�AD�B@SDFNQHRDC�@R�

� %TMC�RODBHƥB�QHRJR�SG@S�QDK@SD�SN�SGD�ODQENQL@MBD�NE�the Fund;

� /QNODQSX�RODBHƥB�QHRJR�SG@S�QDK@SD�O@QSHBTK@QKX�SN�SGD�holding of direct property; and

� General investment risks associated with any investment.

The following is a non-exhaustive list of the investment risks typically encountered in a property development project and their countermeasures.


�� )XQG�6SHFLǊF�5LVNV

Risk Factor Risk Description

Liquidity The Fund is illiquid and is not listed on a recognised stock exchange and there is no intention to list. There is no KHPTHC�L@QJDS�ENQ�SGD�4MHSR�@MC�SGDQD�HR�MN�FT@Q@MSDD�SG@S�4MHSR�B@M�AD�SQ@MREDQQDC��QDCDDLDC�NQ�NSGDQVHRD�CD@KS�with by an Investor and any such proposed dealings may only be carried out in accordance with the Constitution or as approved by the Responsible Entity.

Further, if the Fund holds property assets then such assets may be illiquid. If for any reason it becomes MDBDRR@QX�SN�CHRONRD�NE�%TMC�@RRDSR��SGDQD�HR�@�QHRJ�SG@S�SGD�%TMC�L@X�MNS�AD�@AKD�SN�QD@KHRD�RTƧBHDMS�OQNODQSX�@RRDSR�HM�@�SHLDKX�L@MMDQ�NQ�@S�SGD�ADRS�OQHBD�RNTFGS��VGHBG�L@X�HM�STQM�@ƤDBS�SGD�1DRONMRHAKD�$MSHSXŗR�@AHKHSX�SN�QDSTQM�B@OHS@K�SN�HMUDRSNQR�@MC�L@X�QDCTBD�SGD�MDS�S@MFHAKD�@RRDS�A@BJHMF�ODQ�4MHS

Lack of GLYHUVLƩFDWLRQ

(MUDRSNQR�HM�SGD�%TMC�VHKK�@BPTHQD�4MHSR�HM�@�"K@RR�NE�4MHSR �$@BG�"K@RR�NE�4MHSR�VHKK�QDK@SD�SN�@�O@QSHBTK@Q�#DUDKNOLDMS�/QNIDBS��Q@SGDQ�SG@M�@�ADMDƥBH@K�HMSDQDRS�HM�@KK�@RRDSR�NE�SGD�%TMC �3GD�ODQENQL@MBD�NE�@M�(MUDRSNQŗR�HMUDRSLDMS�HM�4MHSR�HM�SGD�%TMC�VHKK�SGDQDENQD�CHQDBSKX�BNQQDK@SD�VHSG�SGD�ODQENQL@MBD�NE�SGD�#DUDKNOLDMS�/QNIDBS�SN�VGHBG�SGDHQ�4MHSR�QDK@SD

The Fund will only hold interests in real property Development Projects, and no other industry or asset types.

3GDQDENQD��(MUDRSNQR�HM�SGD�%TMC�CN�MNS�QDBDHUD�SGD�ADMDƥS�NE�HMUDRSLDMS�@MC�@RRDS�BK@RR�CHUDQRHƥB@SHNM

Returns not guaranteed

3GDQD�HR�MN�FT@Q@MSDD�NE�@MX�HMBNLD�CHRSQHATSHNM�NQ�B@OHS@K�QDSTQM�NM�SGD�4MHSR�MNQ�HR�SGDQD�@�FT@Q@MSDD�of repayment of capital amounts invested in the Fund. Investors will not be entitled to any guaranteed CHRSQHATSHNMR�NE�OQNƥSR�NQ�B@OHS@K�EQNL�SGD�%TMC �

There is no guarantee that distributions will be at a certain level or that there will be distributions at all.

If certain events arise that result in a Development Project costing more than anticipated, or if there are any @CCHSHNM@K�KH@AHKHSHDR�@QHRHMF�ENQ�SGD�%TMC�NQ�@MX�NSGDQ�E@BSNQR�VGHBG�CDSQHLDMS@KKX�@ƤDBS�SGD�ODQENQL@MBD�NE�@�Development Project, then there is a risk that Investors will make a loss on their investment.

"DQS@HM�"K@RRDR�NE�4MHSR�L@X�G@UD�QDSTQMR�ODFFDC�SN�@�ODQBDMS@FD�KHRS�OQHBD�NQ�L@QJDS�U@KTD�NE�@�OQNODQSX�purchased by them in a Development Project carried out by the Fund. The level of return may therefore be subject to an independent valuation determination or list price which the Investor may or may not agree with.

Third Party 3GDQD�HR�@�QHRJ�SG@S�BNTMSDQO@QSHDR�VHSG�SGD�%TMC��NQ�%TMC�@RRNBH@SDR��ADHMF�UDMCNQR��OTQBG@RDQR��SDM@MSR��@FDMSR��ATHKCDQR�@MC�NSGDQ�RTA�BNMSQ@BSNQR��CN�MNS�ODQENQL�SGDHQ�BNMSQ@BST@K�NAKHF@SHNMR�NVDC�SN�SGD�%TMC��NQ�%TMC�@RRNBH@SDR��OTQRT@MS�SN�@MX�QDKDU@MS�BNMSQ@BST@K�@FQDDLDMS�ADSVDDM�SGD�%TMC��@MC�%TMC�@RRNBH@SDR��@MC�RTBG�counterparties. The failure of the counterparties to perform their contractual obligations may detrimentally HLO@BS�SGD�ODQENQL@MBD�NE�SGD�%TMC�NQ�@ƤDBS�SGD�U@KTD�NE�4MHSR �/QD�R@KDR�OTQBG@RDQR�NQ�SDM@MSR�BNLLHSSDC�SN�@�Development may become insolvent or otherwise default in their obligations on completion. There is a risk that the property may not be able to be re-sold at the same price or re-let at the same rental. Contractual counter-parties may default on their obligations to the Responsible Entity or Investment Manager thereby leading to a capital loss or a reduction in income for the Fund.

Risk Mitigation: #TD�CHKHFDMBD�HMUDRSHF@SHNMR�BNTOKDC�VHSG�RTHS@AKD�SGHQC�O@QSX�NAKHF@SHNMR��VGDQD�@OOQNOQH@SD��should allow the Investment Manager to identify, assess and manage these risks.

&RQƪLFW�RI�interest and arm’s length transactions

The Responsible Entity may, subject to the provisions of the Constitution and the law, appoint related entities to perform services or functions in relation to the Fund.

Risk Mitigation: 1DK@SDC�DMSHSHDR�LTRS�AD�DMF@FDC�NM�SDQLR�SG@S�QDƦDBS�BNLLDQBH@K�@QLŗR�KDMFSG�SDQLR��HM�@BBNQC@MBD�VHSG�L@QJDS�@MC�HMCTRSQX�RS@MC@QCR ��!HMCHMF�BNMSQ@BST@K�@FQDDLDMSR�NM�BNLLDQBH@K�@QLŗR�KDMFSG�terms will be entered into for any transactions between related parties of the Fund.

The Fund has a compliance plan which has procedures for dealing with related party transactions and the Fund has appointed a compliance committee.



Property Market

Increase in supply or fall in demand in any of the sectors of the property market in which the Responsible Entity G@R�HMUDRSDC�@MC�QDCTBSHNM�HM�L@QJDS�U@KTDR�NQ�QDMS�KDUDKR�BNTKC�@CUDQRDKX�HMƦTDMBD�SGD�U@KTD�NE�SGD�HMUDRSLDMS�property.

The assets of the Fund shall be real properties or indirect interests in real properties and the Fund is subject to the general risk of changes to supply and demand in the property sector, which may impact ongoing values.

There is a risk of a fall in Australian residential property prices, a decline in rental returns and occurrence of other factors which may cause a low level of liquidity in the property market.

It is also intended that the Fund may invest in certain concentrated geographic areas. The performance of the Fund may therefore correlate with the performance of the residential property market in the particular geographical areas in which the Fund invests.

Furthermore, changes to the taxation environment, in particular state stamp duty and land tax, can have an impact on the level of supply and demand for properties and the performance of the Fund.

Risk Mitigation: Prospective developments will be evaluated having regard to the impact that property market risks may have on the level of return that will be generated. Property market risk may be reduced through a QDPTHQDLDMS�SN�@BGHDUD�OQD�@FQDDC�KDUDKR�NE�OQD�R@KDR�@MC�KD@RHMF��HE�@OOKHB@AKD� �(S�HR�@MSHBHO@SDC�SG@S�HM�DWBDRR�NE��NE�SGD�OQNIDBS�VHKK�AD�RNKC�OQHNQ�SN�SGD�BNLLDMBDLDMS�NE�SGD�BNMRSQTBSHNM�ODQHNC

�� 3URSHUW\�6SHFLǊF�5LVNV

9Risk Factor Risk Description

Key Personnel Risk

There is a risk that the departure of key personnel from the Fund, the Investment Manager, the Responsible Entity, the Board or from any subsidiaries or related parties of the Fund may be disruptive to the business NODQ@SHNMR�NE�SGD�%TMC�@MC�G@UD�@�CDSQHLDMS@K�DƤDBS�NM�SGD�ODQENQL@MBD�NE�SGD�%TMC

Unforeseen litigation

MX�TMENQDRDDM�KHSHF@SHNM�L@X�@CUDQRDKX�@ƤDBS�ETSTQD�D@QMHMFR�NE�SGD�1DRONMRHAKD�$MSHSX�CTD�SN�SGD�@RRNBH@SDC�KDF@K�BNRSR�@MC�DWODMRDR�SG@S�L@X�MDDC�SN�AD�LDS�SN�OQNSDBS�SGD�1DRONMRHAKD�$MSHSXŗR�NQ�SGD�%TMCŗR�ONRHSHNM �3GD�ODQENQL@MBD�NE�SGD�%TMC�VHKK�AD�HMƦTDMBDC�AX�@MX�KHSHF@SHNM�HMUNKUHMF�SGD�%TMC��1DRONMRHAKD�$MSHSX�NQ�SGD�(MUDRSLDMS�,@M@FDQ ��3GD�KDF@K�BNRSR�@MC�DWODMRDR�@RRNBH@SDC�VHSG�KHSHF@SHNM�L@X�@CUDQRDKX�@ƤDBS�ETSTQD�earnings of the Fund and your investment returns.

Risk Mitigation: The Investment Manager will seek to minimise the impact of such unforeseen costs by seeking legal advice in relation to key decisions of the Fund.

Due diligence Failure of due diligence investigations to identify potential risks, or the potential impact of such risks on the project or the Fund.

Risk Mitigation: The Investment Manager may engage appropriate experts to investigate the environmental, structural, taxation and legal aspects of the project.

The Investment Manager will engage experts who are widely regarded for their specialist knowledge in the areas in which the Investment Manager has sought advice.

#DROHSD�RTBG�HMUDRSHF@SHNMR��SGD�(MUDRSLDMS�,@M@FDQ�B@MMNS�FT@Q@MSDD�SGD�HCDMSHƥB@SHNM�@MC�LHSHF@SHNM�NE�@KK�risks associated with investments by the Fund.

Regulatory &RPSOLDQFH

The Responsible Entity is required to operate in accordance with the Corporations Act and the conditions of its AFSL. If the Responsible Entity fails to abide by and meet its regulatory and compliance obligations it may be forced to retire as Responsible Entity which may potentially disrupt the operation of the Fund.



Inability to sell the development on completion

The inability to sell the completed project at the expected sale price and/or within the projected sale period will result in higher holding charges, reducing the return on the Development, or could result in the Development making a loss. There is a risk that purchasers ultimately default in the performance of their contracts.

Risk Mitigation: 3GD�QDKDU@MS�@QQ@MFDLDMSR�L@X�QDPTHQD�BNRSR�SN�AD�O@HC�NM�SGD�D@QKHDQ�NE�R@KD�NQ�@�RODBHƥDC�period, ensuring there will be no forced sale. However, in certain circumstances the Fund may bear the risk of holding costs exceeding those anticipated. While it will be usual that non-refundable deposits paid by OTQBG@RDQR�VNTKC�AD�QDS@HMDC��VGDQD�@OOKHB@AKD��HS�HR�ONRRHAKD�SG@S�SGD�OQNODQSX�L@X�MNS�AD�@AKD�SN�AD�QD�RNKC�for the same purchase price.

Delivery "NLOKDSHNM��CDKHUDQX��NE�@�CDUDKNOLDMS�L@X�AD�CDK@XDC�CTD�SN�TMENQDRDDM�BHQBTLRS@MBDR�VGHBG�L@X�QDRTKS�HM�increased costs and lower returns on investments.

Risk Mitigation: Much of the time risk in a project is usually carried by the builder. To the extent that this is not the case this is a development risk that may be borne by the Fund if the Development Manager views this as appropriate.

3URMHFW�&RVW�Escalation Risks

3GD�%TMC�VHKK�RDDJ�SN�L@M@FD�BNRSR�@MC�VGDQD�ONRRHAKD�RDDJ�ƥWDC�@FQDDLDMS�NM�BDQS@HM�BNRSR�SN�AD�HMBTQQDC�AX�the Fund in relation to a Development Project. Nevertheless, there is a risk of costs escalation on Development Projects from those costs anticipated for a given project or provided for in a feasibility study for any project. While the Fund will endeavour to manage such costs escalation risks and unforeseen events, events beyond the control of the Fund and other relevant persons involved in a Development Project may occur, which may increase the actual costs beyond anticipated costs. Any such costs escalations may reduce returns to Investors in the Fund.

Planning Planning approvals for developments may be delayed or denied, thereby slowing or preventing Developments. Further, they may not be granted in the form anticipated.

Environmental $MUHQNMLDMS@K�HRRTDR�RTBG�@R�K@MC�BNMS@LHM@SHNM�L@X�CDK@X�NQ�RHFMHƥB@MSKX�HMBQD@RD�SGD�BNRS�NE�#DUDKNOLDMSR

Risk Mitigation: Due diligence has been undertaken to try and identify potential environmental issues or risks. %TQSGDQ��MN�TMCDQFQNTMC�O@QJ�HR�OQNONRDC��VGHBG�L@SDQH@KKX�QDCTBDR�ŖHM�SGD�FQNTMCŗ�FDNSDBGMHB@K�QHRJR

Industrial Relations

Industrial disputes may delay completion of Developments or increase the cost of a project.

Risk Mitigation: The cost of delays due to industrial disputes will in many circumstances be largely allocated to the builder under the building contract. However, there may be circumstances in which the Fund bears this risk where the Investment Manager views this as appropriate.

Insurance %QNL�SHLD�SN�SHLD��U@QHNTR�E@BSNQR�L@X�HMƦTDMBD�OQDLHTLR�SN�@�FQD@SDQ�DWSDMS�SG@M�ENQDB@RS��NQ�HM�RNLD�circumstances policies may not cover an event. The result may, in turn, have a negative impact on the net income NE�SGD�%TMCŗR�QDSTQM

Risk Mitigation:�3GD�(MUDRSLDMS�,@M@FDQ�VHKK�RDDJ�SN�HCDMSHEX�SGD�RHFMHƥB@MS�QHRJR�HMUNKUDC�HM�@M�HMUDRSLDMS�@MC��VGDQD�OQ@BSHB@K�@MC�@ƤNQC@AKD��L@X�LHSHF@SD�SGHR�QHRJ�SGQNTFG�SGD�DMF@FDLDMS�NE�RODBH@KHRS�HMRTQ@MBD�underwriters who are engaged to seek the most appropriate insurance resolution.

Variations 5@QH@SHNMR�SN�BNMRSQTBSHNM�RODBHƥB@SHNMR�RHFMHƥB@MSKX�HMBQD@RD�SGD�BNMRSQTBSHNM�BNRS

Risk Mitigation:�3GD�#DUDKNOLDMS�,@M@FDQ�VHKK�RDDJ�SN�OTS�HM�OK@BD�ƥWDC�OQHBD�@MC�SHLD�BNMSQ@BSR�VHSG�SGD�ATHKCDQ��VGHBG�VHKK�QDCTBD�SGD�QHRJ�NE�L@SDQH@K�U@QH@SHNMR�NBBTQQHMF �'NVDUDQ��SGDX�L@X�AD�SN�SGD�%TMCŗR�@BBNTMS��usually in circumstances where the Development Manager is of the view that the variations should give rise to increased revenue.

&DSLWDO�Expenditure

There is a risk that any capital expenditure required on the properties could exceed cost expectations, thereby reducing potential distributions to Investors.


9.3 General Investment Risks


Economic &RQGLWLRQV

Any change in the general economic environment can have a positive or negative impact on the value of the Fund.

Interest Rates (MBQD@RDR�HM�HMSDQDRS�Q@SDR�L@X�@ƤDBS�SGD�@U@HK@AHKHSX�NQ�BNRS�NE�ANQQNVHMFR

Risk Mitigation: In any event, to mitigate this risk the Investment Manager has taken reasonable steps to ensure appropriate contingency allowances for interest rates has been built into the feasibility assessment.

,QƪDWLRQ�DQG�Escalating &RQVWUXFWLRQ�&RVWV

'HFGDQ�SG@M�DWODBSDC�HMƦ@SHNM�Q@SDR�FDMDQ@KKX��NQ�HMBQD@RDR�HM�OQHBDR�HM�@�O@QSHBTK@Q�ATHKCHMF�RDBSNQ��L@X�HMBQD@RD�construction costs.

Risk Mitigation: The construction cost allowance included in the development feasibility has been subject to an HMCDODMCDMS�BNMƥQL@SHNM�AX�@�PT@MSHSX��RTQUDXNQ�@R�SN�QD@RNM@AKDMDRR �(S�HR�@MSHBHO@SDC�SG@S�SGD�ATHKCDQ�VHKK�AD�@OONHMSDC�NM�@�ƥWDC�OQHBD�@MC�SHLD�BNMSQ@BS

The relevant arrangements may require the developer to bear the risk of costs exceeding that agreed in the building contract. However, the Investment Manager may bear such risks in certain circumstances where the Investment Manager is of the view that this is appropriate.

&KDQJHV�LQ�the law or government policy

Changes in income tax, indirect tax or stamp duty legislation or policy, particularly with regard to property CDUDKNOLDMS�@MC�HMUDRSLDMS�@BSHUHSX��L@X�@ƤDBS�SGD�%TMCŗR�QDSTQMR �2TBG�BG@MFDR�B@M�QDRTKS�HM�SGD�CHRSQHATSHNM�policy of the Fund having to change.

Taxation The Fund is subject to Australian tax legislation and the legislation of governments in countries where the %TMC�L@X�HMUDRS �3GD�1DRONMRHAKD�$MSHSX�VHKK�RDDJ�SGD�RDQUHBDR�NE�DWSDQM@K�S@W@SHNM�OQNEDRRHNM@KR�VHSG�RODBHƥB�experience in taxation matters that relate to the Fund and its investments. To the extent that legislation or administrative practice changes in a jurisdiction this may impact on the returns to Investors.

Risk Mitigation: 3GD�%TMC�VHKK�RDDJ�SGD�RDQUHBDR�NE�DWSDQM@K�S@W@SHNM�OQNEDRRHNM@KR�VHSG�RODBHƥB�DWODQHDMBD�HM�taxation matters that relate to the Fund and its investments.


Finance Risk The Fund may experience delays in receiving funding, or fail to receive funding at all, from a Senior Lender for the Development. Such funding will be necessary for the Fund to successfully carry out the Development.

89

FEES AND OTHER COSTS

10.

10.1 Consumer Advisory Warning4MCDQ� TRSQ@KH@M�FNUDQMLDMS�QDFTK@SHNMR��@KK�OQNCTBS�CHRBKNRTQD�statements are required to include the standard consumer @CUHRNQX�V@QMHMF�@R�RDS�NTS�ADKNV �(S�HR�MNS�RODBHƥB�SN�HMENQL@SHNM�on fees and other costs in this Fund.

7R�ƲQG�RXW�PRUH

(E�XNT�VNTKC�KHJD�SN�ƥMC�NTS�LNQD��NQ�RDD�SGD�HLO@BS�NE�SGD�EDDR�based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (ZZZ�ƲGR�DVLF�JRY�DX) has a managed investment fee calculator to help you check out CHƤDQDMS�EDD�NOSHNMR

Did you know?2L@KK�CHƤDQDMBDR�HM�ANSG�HMUDRSLDMS�ODQENQL@MBD�@MC�EDDR�and costs can have a substantial impact on your long term QDSTQMR �%NQ�DW@LOKD��SNS@K�@MMT@K�EDDR�@MC�BNRSR�NE��NE�XNTQ�ETMC�A@K@MBD�Q@SGDQ�SG@M��BNTKC�QDCTBD�XNTQ�ƥM@K�QDSTQM�AX�TO�SN��NUDQ�@��XD@Q�ODQHNC��ENQ�DW@LOKD��QDCTBD�HS�EQNL�ʙ��SN�ʙ�� 8NT�RGNTKC�BNMRHCDQ�whether features such as superior investment performance or the provision of better member services justify higher EDDR�@MC�BNRSR �8NT�L@X�AD�@AKD�SN�MDFNSH@SD�SN�O@X�KNVDQ�contribution fees and management costs where applicable. RJ�SGD�%TMC�NQ�XNTQ�ƥM@MBH@K�@CUHRDQ


10

Type of fee or cost Amount How and when paid

Fees when your money moves in or out of the Fund

Establishment Fee

The fee to open your investment

��NE�SGD�ENQDB@RS�3NS@K�Development Cost for the Development Project.

/@X@AKD�SN�SGD�(MUDRSLDMS�,@M@FDQ�TONM�BKNRD�NE�SGD�.ƤDQ

2TBG�EDD�HR�@OOQNWHL@SDKX�ʙ��

&RQWULEXWLRQ�)HH

The fee on each amount contributed to your investment

��NE�ETMCR�Q@HRDC�TMCDQ� @M�.ƤDQ

/@X@AKD�SN�SGD�(MUDRSLDMS�,@M@FDQ�TONM�BKNRD�NE�SGD�.ƤDQ

3GHR�EDD�BNTKC�AD�TO�SN�@�L@WHLTL�NE�ʙ��CDODMCHMF�NM�amount of funds raised.

Withdrawal Fee

The fee on each amount you take out of your investment

Nil. N/A

Termination Fee

The fee to close your investment

Nil. N/A

0$1$*(0(17�&2676

Investment Management Fee

The fees and costs for managing your investment

� ��NE�3NS@K�#DUDKNOLDMS�Costs, per annum

Payable to the Investment Manager for investment management RDQUHBDR�OQNUHCDC�SN�SGD�%TMC�HM�BNMMDBSHNM�VHSG�SGD�.ƤDQ�@MC�#DUDKNOLDMS�/QNIDBS �2TBG�EDD�DPT@KR�ʙ��ODQ�LNMSG�@MC�HR�payable monthly in arrears.

3URMHFW�0DQDJHPHQW ��Development Management Fees

��NE�3NS@K�#DUDKNOLDMS�Costs, based on a 24 month term.

�EDD�NE��NE�SGD�3NS@K�#DUDKNOLDMS�"NRSR�VHKK�AD�O@HC�SN�SGD�/QNIDBS�,@M@FDQ�@MC�@�EDD�NE��NE�SGD�3NS@K�#DUDKNOLDMS�"NRSR�will be paid to the Development Manager, with such fees payable in equal monthly installments over a 24 month term.

The fee payable to the Development Manager is approximately ʙ��ODQ�LNMSG��@MC�SGD�EDD�O@X@AKD�SN�SGD�/QNIDBS�,@M@FDQ�HR�@OOQNWHL@SDKX�ʙ��ODQ�LNMSG

Fund Operating Expenses

Paid from Fund assets based on actual costs and out of pocket expenses incurred by the Responsible Entity, Investment Manager and Development Manager.

This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the Fund assets as

@�VGNKD �3@WDR�@QD�RDS�NTS�HM�@MNSGDQ�O@QS�NE�SGHR�CNBTLDMS �8NT�should read all information about fees and costs because it is important to understand their impact on your investment.

10.2 Fees and other costs


10Type of fee or cost Amount How and when paid

6(59,&(�)((6

Investment Switching Fee

The fee for switching your investment options

Nil. N/A

Type of fee or cost Amount How and when paid

1DRHCT@K�/QNƥS TBC. � 3GD�(MUDRSLDMS�,@M@FDQ�HR�DMSHSKDC�SN�SGD�QDRHCT@K�OQNƥS�@ESDQ�"K@RR� ��SN�#��4MHSGNKCDQR�G@UD�QDBDHUDC�SGD�HMHSH@K�HMUDRSDC�capital returned in full and maximum capped investment returns.

� 3GHR�EDD�NQ�OQNƥS�RG@QD�HR�O@X@AKD�TONM�OQNIDBS�BNLOKDSHNM

Sales Commission �� Based on gross sales, and calculated on the list price of the Apartment purchased by an Investor.

� /@X@AKD��TOEQNMS�@MC��TONM�RDSSKDLDMS�NE�SGD�R@KD�NE�the Apartment.

� This fee is payable to third party introducers of purchasers of O@QSLDMSR��RTBG�@R�QD@K�DRS@SD�@FDMSR�NQ�NSGDQ�@CUHRDQR�

Debt Arrangement Fee � �� Based on a percentage of debt raised.

� 3GHR�@LNTMSR�SN�@OOQNWHL@SDKX�ʙ��HM�SNS@K

� This fee is payable to the external consultants who arrange debt for the Fund for the purposes of the Development.

Other Fees, Commissions and Entitlements

Please note that the fees that may be charged from the Fund L@X�CHƤDQ�ENQ�U@QHNTR�"K@RRDR�NE�4MHSR�SG@S�L@X�AD�HRRTDC�HM�SGD�%TMC��@MC�L@X�CHƤDQ�ENQ�D@BG�#DUDKNOLDMS�/QNIDBS�TMCDQS@JDM� by the Fund.

Fees and expenses which relate to the Fund generally will be @OONQSHNMDC�ADSVDDM�@KK�"K@RRDR�NE�4MHSR �%DDR�@MC�DWODMRDR�which relate solely to one particular Development Project will be paid out of Fund assets to which that Development Project QDK@SDR�@MC�RN�NMKX�@ƤDBS�SGD�"K@RRDR�NE�4MHSR�VGHBG�QDK@SD�SN�SG@S�Development Project.

A description of the fees generally charged from the Fund is as follows:

10.3.1 Establishment Fee

M�DRS@AKHRGLDMS�EDD�L@X�AD�BG@QFDC�ENKKNVHMF�BKNRD�NE�SGD�.ƤDQ �The fee will be calculated based on a percentage of the total forecast development cost for a Development Project. This fee VHKK�AD�O@X@AKD�NM�BKNRD�NE�SGD�.ƤDQ �3GD�EDD�ENQLR�O@QS�NE�SGD�overall cost of establishing the investment.

10.3 Additional explanation of Fees and Costs


1010.3.2 Sales Commission

Sales agents, real estate agents and other introducers of purchasers of properties will be entitled to receive a sales commission fee in respect of the sales of properties comprised in SGD�%TMCŗR�#DUDKNOLDMS�/QNIDBSR �3GD�%TMC�HMSDMCR�SN�RSQTBSTQD�O@XLDMS�NE�R@KDR�BNLLHRRHNMR�RN�SG@S��HR�O@X@AKD�TOEQNMS�@MC�SGD�A@K@MBD�NE��HR�O@X@AKD�TONM�RDSSKDLDMS�NE�SGD�R@KD�NE�the property subject of the sales commission.

�� 1DRONMRHAKD�$MSHSXŗR�,@M@FDLDMS�%DD�@MC�Costs Reimbursement

This is a fee payable to the Responsible Entity for managing and operating the Fund. This fee will be payable monthly in arrears, @MC�HR�DRSHL@SDC�@S�ʙ��OKTR�&23�ODQ�LNMSG �

10.3.4 Investment Management Fee

This is a fee payable to the Investment Manager for undertaking contracted Fund management services on behalf of the Responsible Entity, including managing and operating the Fund. This fee will be payable monthly in arrears.

10.3.5 Development Manager Fee

This is a fee payable to the Development Manager for managing the Development on behalf of the Responsible Entity.

10.3.6 Project Manager Fee

If the Fund engages a project manager to manage a Development Project, a Project Manager may be engaged and in consideration for their services be entitled to a fee out of the Fund.

10.3.7 Debt Arrangement Fee

This is a fee payable to debt originators for the Fund and will be calculated based on a percentage of debt raised for the Fund for a Development Project. This fee will be payable on completion of the debt raising.

10.3.8 Equity Arrangement Fee / Contribution Fee

This is a fee payable to the Investment Manager, or alternatively, to other advisors, brokers, dealers and agents who introduce (MUDRSNQR�SN�SGD�%TMC �3GHR�EDD�HR�O@X@AKD�NM�BKNRD�NE�SGD�.ƤDQ �

10.3.9 Responsible Entity and Investment Manager Termination Fees

3GD�1DRONMRHAKD�$MSHSX�VHKK�AD�DMSHSKDC�SN�@�EDD�NE�ʙ��HE�HS�HR�removed as Responsible Entity of the Fund.

3GD�(MUDRSLDMS�,@M@FDQ�VHKK�AD�DMSHSKDC�SN�QDS@HM�HSR�OQNƥS�share entitlement if it is removed as Investment Manager for a Development Project.

93PRODUCT DISCLOSURE STATEMENT – DRIFTWOOD OFFER

10.3.10 Fund Operating Expenses

The Responsible Entity and Investment Manager are entitled to be reimbursed by the Fund for all expenses and liabilities incurred in respect of establishing, administering and managing SGD�%TMC��HMBKTCHMF�L@QJDSHMF�DWODMRDR��SQ@UDK�DWODMRDR��QDMS@K��utilities, and stationery). Such expenses are to be paid by the Fund as and when incurred. If such expenses are incurred by the Responsible Entity or Investment Manager on behalf of the Fund then such expenses are to be reimbursed to such parties as soon as practicable from the Fund.

10.3.11 Custodian Fees

The Custodian will be entitled to a fee and be reimbursed for its costs and expenses in accordance with the terms of its Custody Agreement.

10.3.12 Taxes, GST and Stamp Duty

During the course of conducting its business and activities, the Fund will incur general taxes, goods and services tax and stamp CTSX �2TBG�DWODMRDR�@QD�SN�AD�HMBTQQDC�NTS�NE�SGD�%TMCŗR�@RRDSR

�� 1DRHCT@K�/QNƥS

3GD�%TMC�L@X�DMSDQ�HMSN�OQNƥS�RG@QHMF�@QQ@MFDLDMSR�VHSG�O@QSHDR�who have managed or consulted with the Fund to provide ENQ�SGD�RG@QHMF�NE�QDRHCT@K�OQNƥSR�CDQHUDC�AX�SGD�%TMC�EQNL�@�Development Project after meeting necessary costs and expenses of the Development Project and meeting its obligations with respect to any forecast returns payable to Investors.

For the purposes of the Development Project subject of this .ƤDQ��SGD�(MUDRSLDMS�,@M@FDQ�RG@KK�AD�DMSHSKDC�SN�@MX�QDRHCT@K�OQNƥSR�CDQHUDC�EQNL�SGD�#DUDKNOLDMS�/QNIDBS�@ESDQ�@KK�MDBDRR@QX�costs and expenses of the Development Project are met and all investment returns and capital returns paid to Investors.

10.3.14 Additional Fees and Costs

(MUDRSNQR�SG@S�G@UD�ADDM�HMSQNCTBDC�SN�SGD�.ƤDQ�UH@�SGDHQ�ATXDQRŗ�agents or project marketers may have to pay an additional fee.

Investors may incur certain other personal costs such as conveyancing, accounting, legal costs, stamp duty and other taxation costs. Investors should seek their own professional advice in relation to tax consequences of the investment in the Fund and an Apartment.

In addition, the costs of various third party consultants have been provided for in the feasibility model. Where necessary or appropriate, the Investment Manager may undertake some of these roles and be paid at market rate for such services.

10


3GHR�S@AKD�FHUDR�@M�DW@LOKD�NE�GNV�SGD�EDDR�@MC�BNRSR�ENQ�SGD�%TMC�B@M�@ƤDBS�XNTQ�HMUDRSLDMS�NUDQ�@�NMD�XD@Q�ODQHNC �8NT�RGNTKC�TRD�SGHR�table to compare this product with other managed investment products.

Example Balance of $50,000 with contributions of $5,000 during year

(TXLW\�$UUDQJHPHQW��&RQWULEXWLRQ�)HH

Nil %NQ�DUDQX�@CCHSHNM@K�ʙ��XNT�OTS�HM�XNT�VHKK�AD�BG@QFDC�ʙ�

+RZHYHU��SOHDVH�QRWH�WKDW�IRU�DQ�LQLWLDO�LQYHVWPHQW�WR�DFTXLUH�D�8QLW�RƱHUHG�XQGHU�WKH�2ƱHU�DQ�(TXLW\�$UUDQJHPHQW�)HH�RI��ZLOO�EH�SD\DEOH�WR�WKH�,QYHVWPHQW�0DQDJHU��2Q�DQ�LQYHVWPHQW�RI��ZRXOG�HTXDWH�WR��

PLUS 0DQDJHPHQW�&RVWV

�� MC��ENQ�DUDQX�ʙ��XNT�G@UD�HM�SGD�%TMC�HS�HR�DRSHL@SDC�SG@S�XNT�VHKK�AD�BG@QFDC�ʙ��D@BG�XD@Q

EQUALS &RVW�RI�WKH�)XQG

(E�XNT�G@C�@M�HMUDRSLDMS�NE�ʙ��@S�SGD�ADFHMMHMF�NE�SGD�XD@Q�@MC�XNT�OTS�HM�@M�@CCHSHNM@K�ʙ��CTQHMF�SG@S�XD@Q��XNT�VNTKC�AD�BG@QFDC�EDDR�NE�@OOQNWHL@SDKX�ʙ��HM�SNS@K�BNLOQHRHMF�SGD�$PTHSX� QQ@MFDLDMS��"NMSQHATSHNM�%DD�@MC�SGD�Management Fees.

What it costs you will depend on the investment option you choose and the fees \RX�QHJRWLDWH�ZLWK�\RXU�)XQG�RU�\RXU�ǊQDQFLDO�DGYLVHU�

Notes:

1. 3GD�"NQONQ@SHNMR�1DFTK@SHNMR�QDPTHQD�SG@S�SGD�@ANUD�DW@LOKD�AD�OQNUHCDC�VGHBG�@RRTLDR�@�A@K@MBD�NE�ʙ��@MC�@M�@CCHSHNM@K�BNMSQHATSHNM�NE�ʙ�� 4MCDQ�SGD�.ƤDQ��HS�VHKK�FDMDQ@KKX�MNS�AD�ONRRHAKD�SN�@BPTHQD�ETQSGDQ�4MHSR�HM�@�"K@RR�NMBD�4MHSR�G@UD�ADDM�HRRTDC��@MC�HM�@MX�DUDMS��SGD�HRRTD�OQHBD�NE�@�4MHS�NƤDQDC�TMCDQ�SGD�.ƤDQ�VHKK�DWBDDC�ʙ��

2. The Management Costs include the estimated Investment Management Services Fees and Development Management Fee.

3. (M�@CCHSHNM��SGDQD�HR�@M�$PTHSX� QQ@MFDLDMS�%DD��"NMSQHATSHNM�%DD��NE��NE�ETMCR�@CU@MBDC�AX�@M�(MUDRSNQ�SN�RTARBQHAD�ENQ�4MHSR�HM�SGD�%TMC�TMCDQ�SGD�.ƤDQ

4. (E�XNT�@KRN�OTQBG@RD�@M� O@QSLDMS�HM�BNMMDBSHNM�VHSG�XNTQ�@BPTHRHSHNM�NE� ��SN�"��"K@RR�4MHSR��@�EDD�NE��VNTKC�AD�O@HC�@R�@�sales commission.

10.4 Example of Annual Fees and Costs

10


Additional Information

11.


11Suitable Investors

Due to the nature of the investment strategy, the investment term and the fact that the Fund is illiquid, the investment is suitable for Investors with a long term investment strategy and expectation.

(MUDRSNQR�RGNTKC�BKNRDKX�QD@C�SGD�/#2�SN�CDSDQLHMD�VGDSGDQ�@�O@QSHBTK@Q�.ƤDQ�HR�RTHS@AKD�ENQ�SGDL�@MC�RDDJ�advice from professional advisers before investing in the Fund.

%TQSGDQLNQD��SGD�HMUDRSLDMS�HM� ��SN�"��4MHSR�HR�NMKX�RTHS@AKD�ENQ�HMUDRSNQR�VHSG�SGD�ƥM@MBH@K�B@O@BHSX�SN�meet the total investment commitment required given that the investment requires the subscription for 4MHSR�HM�SGD�%TMC�OKTR�SGD�OTQBG@RD�NE�@M� O@QSLDMS�HM�SGD�#DUDKNOLDMS

Investors should read the entire PDS and closely consider their investment time frame and individual risk SNKDQ@MBD�@MC�RDDJ�@CUHBD�EQNL�OQNEDRRHNM@K�@CUHRDQR�ADENQD�HMUDRSHMF�HM�SGD�4MHSR

Responsible Entity

Axias Funds Ltd is the Responsible Entity of the Fund.

In summary, the roles and responsibilities of the Responsible Entity for the Driftwood Project are as follows:

� ,@M@FD�SGD�BNQONQ@SD��ƥM@MBH@K�@MC�QDONQSHMF�QDPTHQDLDMSR�NE�SGD�%TMC�VHSG�QDRODBS�SN�SGD�#QHESVNNC�Project;

� Corporate governance and compliance obligations;

� Appointment and overseeing of Investment Manager to oversee the Driftwood Project;

� Appointment and overseeing of service providers appointed in connection with the Driftwood Project.

Investment Manager

Future Funds Management Pty Ltd is the Investment Manager for the Fund, having been appointed by the Responsible Entity pursuant to an Investment Manager Services Agreement.

The Investment Manager is a Corporate Authorised Representative of Axias Funds Ltd.

In summary, the roles and responsibilities of the Investment Manager shall be as follows:

� Managing and overseeing of the ongoing day to day conduct of the Fund with respect to the Driftwood Project;

� Participation in Project Control Group meetings;

� Engagement of consultants for the Fund;

� Engagement of advisors to the Fund;

� Financial analysis and modelling.

Withdrawal Rights

Investors will not be able to withdraw from their investment.

4MHSR�VHKK�MNS�AD�@AKD�SN�AD�QDCDDLDC�OQHNQ�SN�DWOHQ@SHNM�NE�SGD�QDKDU@MS�SDQL�NE�SGD�4MHSR

MX�SQ@MREDQ�NE�4MHSR�L@X�NMKX�NBBTQ�HE�@OOQNUDC�AX�SGD�1DRONMRHAKD�$MSHSX �3GD�1DRONMRHAKD�$MSHSX�L@X�accept or refuse a transfer request in its sole discretion.

Transfer of Units 4MHSR�@QD�MNS�SQ@MREDQ@AKD�TMKDRR�NSGDQVHRD�@OOQNUDC�AX�SGD�1DRONMRHAKD�$MSHSX �

3GD�1DRONMRHAKD�$MSHSX�L@X�HM�HSR�CHRBQDSHNM�VHSGGNKC�HSR�BNMRDMS�SN�@�OQNONRDC�SQ@MREDQ�NE�4MHSR�NQ�L@JD�HSR�BNMRDMS�BNMCHSHNM@K � MX�4MHS�CHRONR@K�AX�@�4MHSGNKCDQ�HR�SN�AD�HM�@�ENQL�@OOQNUDC�AX�SGD�1DRONMRHAKD�$MSHSX

Investment Management Services Agreement

As noted above, the Responsible Entity has appointed Future Funds Management Pty Ltd ACN 155 884 227, as the Investment Manager under an Investment Management Services Agreement dated 02 July 2013 to provide investment management services and general management duties in connection with the Driftwood Project to be carried out by the Fund. This includes, but is not limited to, the day to day general management of the Driftwood Project, engagement and management of contractors and advisors to the Development and overseeing the Development. For the execution of its duties and provision of services, the Investment Manager shall be entitled to fees set out in Section 10 of this PDS.


11Development Manager

As noted above, the Responsible Entity has appointed Future Estate Group Pty Ltd ACN 155 880 363, as the Development Manager under a Development Management Services Agreement dated 02 July 2013 to provide development management services and general management duties in connection with the Driftwood Project to be carried out by the Fund.

Project Manager Highgate Management Pty Ltd will be appointed as the Project Manager for the Development.

Highgate Management Pty Ltd provides outcome-focused development advisory and management services to both public and private sector clients. Highgate combines its deep industry knowledge and experience VHSG�ADMDƥSR�CQHUDM�OQNIDBS�OK@MMHMF��FNUDQM@MBD�@MC�CDKHUDQX�LDSGNCR�SN�BQD@SD�DMC�U@KTD�ENQ�HSR�BKHDMSR

Management Rights

3GD�L@M@FDLDMS�QHFGSR�ENQ�SGD�ATHKCHMF�R��BNLOQHRDC�HM�SGD�#DUDKNOLDMS�@S�SGD�/QNODQSX��HMBKTCHMF�SGD�right to act as body corporate manager for the properties and to receive services fees in consideration for providing such management services, form an asset of the Development Project that is the subject of this .ƤDQ �3GD�L@M@FDLDMS�QHFGSR�VHKK�AD�RNKC�AX�SGD�%TMC��@MC�SGD�OQNBDDCR�CDQHUDC�EQNL�SGD�R@KD�NE�RTBG�management rights will be used to meet costs and expenses associated with the Development Project, the QDO@XLDMS�NE�ƥM@MBD�ENQ�SGD�#DUDKNOLDMS�/QNIDBS�@MC�SN�LDDS�4MHSGNKCDQ�QDSTQMR �3N�SGD�DWSDMS�SG@S�@KK�RTBG�O@XLDMSR�@MC�KH@AHKHSHDR�G@UD�ADDM�R@SHRƥDC��SGD�LNMHDR�CDQHUDC�EQNL�SGD�R@KD�NE�SGD�L@M@FDLDMS�QHFGSR�RG@KK�ENQL�O@QS�NE�SGD�QDRHCT@K�OQNƥS�NE�SGD�#DUDKNOLDMS�/QNIDBS �3GD�(MUDRSLDMS�,@M@FDQ�HR�DMSHSKDC�SN�@MX�QDRHCT@K�OQNƥSR�FDMDQ@SDC�AX�SGD�#DUDKNOLDMS�/QNIDBS

Applications Investors should complete the Application Form accompanying this PDS and submit together with your payment to the Investment Manager.

Payment methods and details are included in the Application Form. Application moneys are to be paid into an interest bearing account upon receipt that complies with section 1017E of the Corporations Act. Any HMSDQDRS�D@QMDC�NM�SGHR�@BBNTMS�L@X�AD�QDS@HMDC�ENQ�SGD�ADMDƥS�NE�SGD�%TMC

Please refer to Section 14 for more information.

Meeting of Investors

3GD�1DRONMRHAKD�$MSHSX�L@X�B@KK�@�LDDSHMF�NE�4MHS�GNKCDQR�@S�@MXSHLD�@MC�VGDM�QDPTHQDC�SN�CN�RN�TMCDQ�SGD�Corporations Act or the Constitution.

3GD�"NMRSHSTSHNM�RDSR�NTS�SGD�OQNUHRHNMR�ENQ�SGD�B@KKHMF�NE�LDDSHMFR�AX�SGD�1DRONMRHAKD�$MSHSX�NQ�AX�4MHS�holders and the rules governing the holding of a meeting.

�PTNQTL�ENQ�@M�(MUDRSNQ�,DDSHMF�HR�@S�KD@RS��4MHS�GNKCDQR��NQ�QDOQDRDMS@SHUDR�AX�OQNWX�NQ�@SSNQMDX��QDOQDRDMSHMF�@S�KD@RS��NE�SGD�SNS@K�MTLADQ�NE�4MHSR�NM�HRRTD � KK�4MHS�GNKCDQR�G@UD�SGD�QHFGS�SN�UNSD�@S�@MX�4MHSGNKCDQ�,DDSHMF

How we calculate Unit prices

4MHS�OQHBDR�@QD�SN�AD�CDSDQLHMDC�G@UHMF�QDF@QC�SN�SGD�@MSHBHO@SDC�BNRSR�@MC�ƥM@MBH@K�ENQDB@RSR�ENQ�D@BG�Development Project conducted by the Fund, and will be determined on a case by case basis for each CHƤDQDMS�#DUDKNOLDMS�/QNIDBS�BNMCTBSDC�AX�SGD�%TMC

Fund Borrowings Policy

It is intended that the Fund will have borrowings for each Development Project conducted by the Fund.

�#DUDKNOLDMS�/QNIDBS�VHKK�AD�O@QSH@KKX�ETMCDC�UH@�Q@HRHMF�LNMHDR�EQNL�(MUDRSNQR�TMCDQ�@M�.ƤDQ �3GD�A@K@MBD�NE� the required funding for a Development Project will be sourced from a Senior Lender and other lenders if required.

&RQVWLWXWLRQ The Fund is a registered managed investment scheme under the Corporations Act and is governed by a Constitution which has been lodged with ASIC.

3GD�"NMRSHSTSHNM�CD@KR�VHSG�SGD�QHFGSR�NE�4MHS�GNKCDQR�@MC�SGD�NAKHF@SHNMR�NE�SGD�1DRONMRHAKD�$MSHSX�@MC�other management entities or functions.

This PDS provides a brief outline of the provisions of the Constitution. Provisions of the Constitution include, but are not limited to, the following:


11&RQVWLWXWLRQ

continued...

� Obligations, duties and powers of the Responsible Entity and delegation of its functions;

� Investments of the Fund and valuation principles for assets;

� Distribution of income and capital;

� +HLHS@SHNM�NE�KH@AHKHSX�@MC�QDLTMDQ@SHNM�@MC�HMCDLMHƥB@SHNM�ENQ�SGD�1DRONMRHAKD�$MSHSX�

� %TQSGDQ�HRRTD�NE�4MHSR�

� 3Q@MREDQ@AHKHSX�NE�4MHSR�

� Withdrawals from the Fund;

� 3GD�1DRONMRHAKD�$MSHSXŗR�EDDR�

� 3GD�(MUDRSLDMS�,@M@FDQŗR�EDDR�

� Appointment, retirement and removal of the Responsible Entity; and

� ,DDSHMF�@MC�UNSHMF�NE�4MHS�GNKCDQR

The Responsible Entity may amend the Constitution from time to time, subject to the provisions of the Constitution and the Corporations Act.

It may retire as the responsible entity and Responsible Entity of the Fund as permitted by law and must retire when required by law.

A copy of the Constitution is available from the Responsible Entity upon request.

&RPSOLDQFH�3ODQ The Fund has a Compliance Plan which has been lodged with ASIC. This sets out the measures applied in operating the Fund to ensure compliance with the Constitution and the Corporations Act. An independent audit is conducted on the Compliance Plan and lodged with ASIC on an annual basis.

&RPSOLDQFH�&RPPLWWHH

Compliance with the Compliance Plan and Constitution is to be monitored by a compliance committee appointed by the Responsible Entity.

&XVWRGLDQ The Trust Company Limited ABN 59 004 027 743 has been appointed by the Responsible Entity to act as an independent Custodian to hold and maintain the assets of the Fund and to act on proper instructions from the Responsible Entity pursuant to a Custody Deed dated 5 December 2008. The Custodian shall be entitled to the fees as set out in Section 10.

Limitation of liability of Unit holders

2TAIDBS�SN�SGD�"NMRSHSTSHNM��D@BG�"K@RR�NE�4MHS�BNMEDQR�NM�SGD�(MUDRSNQ�@M�TMCHUHCDC�HMSDQDRS�HM�SGD�"K@RR�Assets of the Fund but not an entitlement to or interest in any particular part or asset of the Fund. The "NMRSHSTSHNM�KHLHSR�@M�(MUDRSNQŗR�KH@AHKHSX�SN�SGD�@LNTMS��HE�@MX��VGHBG�QDL@HMR�TMO@HC�HM�QDK@SHNM�SN�SGD�(MUDRSNQŗR�RTARBQHOSHNM�ENQ�HSR�4MHSR �'NVDUDQ��@RRTQ@MBD�B@MMNS�AD�FHUDM�@R�SGHR�SXOD�NE�KHLHS@SHNM�NE�KH@AHKHSX�NE�@�4MHS�GNKCDQ�G@R�MNS�ADDM�ETKKX�SDRSDC�HM�SGD�BNTQSR

Anti-Money Laundering DQG�&RXQWHU�Terrorism Financing

In December 2006, the Australian Government enacted the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) (“AML/CTF Act”) SN�QDFTK@SD�ƥM@MBH@K�RDQUHBDR�@MC�SQ@MR@BSHNMR�HM�RTBG�@�V@X�SG@S�VHKK�@RRHRS�HM�SGD�CDSDBSHNM�@MC�OQDUDMSHNM�NE�LNMDX�K@TMCDQHMF�@MC�SDQQNQHRL�ƥM@MBHMF �

The Responsible Entity has a number of obligations under the AML/CTF Act�HMBKTCHMF�SGD�UDQHƥB@SHNM�NE�@M�(MUDRSNQŗR�HCDMSHSX�ADENQD�SGD�1DRONMRHAKD�$MSHSX�OQNUHCDR�SGD�(MUDRSNQ�VHSG�@�CDRHFM@SDC�RDQUHBD�@MC�EQNL�time to time thereafter. The Responsible Entity may therefore request additional or updated information EQNL�(MUDRSNQR�@MC�VHKK�MNS�AD�@AKD�SN�OQNBDRR�@M�@OOKHB@SHNM�ENQ�4MHSR�TMSHK�@KK�NE�SGD�QDPTHQDC�HMENQL@SHNM�is received by the Responsible Entity. The Responsible Entity may in its absolute discretion choose to reject applicants who fail to provide the requested information in a reasonable time. When legally bound to do so, the Responsible Entity may disclose the information gathered to any relevant regulatory authority and/or law enforcement agency. Transactions may be delayed, refused or blocked where the Responsible Entity has reasonable grounds to believe that the transaction breaches any law or sanctions, and in such cases, SGD�1DRONMRHAKD�$MSHSX�@MC�HSR�QDK@SDC�O@QSHDR�VHKK�MNS�AD�KH@AKD�ENQ�@MX�KNRR�XNT�RTƤDQ��GNVRNDUDQ�B@TRDC�HM�connection with the Fund.


Privacy M�HMUDRSLDMS�HM�SGD�%TMC�HR�RTAIDBS�SN�SGD�%TMCŗR�/QHU@BX�/NKHBX��@�BNOX�NE�VGHBG�HR�@U@HK@AKD�NM�QDPTDRS� to the Investment Manager at [email protected] or the Responsible Entity at LQIR#D[LDVJURXS�FRP�DX �3GD�OQHU@BX�NE�(MUDRSNQRŗ�ODQRNM@K�HMENQL@SHNM�HR�HLONQS@MS�SN�TR�@MC�VD�@QD�committed to managing and using personal information in ways that comply with the National Privacy Principles of the Privacy Act 1988 (Cth) and amendments.

By completing the Application Form attached to this PDS, you agree to the Responsible Entity or the Investment Manager collecting, holding and using personal information about you to process your Application, and administer and manage the products and services which the Responsible Entity or the Investment Manager provides to you. This includes the purposes of evaluating your Application, the issuing NE�4MHSR��TOC@SHMF�@MC�BNLLTMHB@SHMF�XNTQ�GNKCHMFR��QDK@SDC�SQ@MR@BSHNMR��DMSHSKDLDMSR��S@W@SHNM�HMENQL@SHNM�@MC�NSGDQ�QDKDU@MS�HMENQL@SHNM��QDONQSHMF�NM�SGD�%TMCŗR�ƥM@MBH@K�ODQENQL@MBD�@MC�HMENQLHMF�XNT�NE�investment opportunities.

The Fund is also required to collect information to verify your identity pursuant to our obligations under the AML/CTF Act and to obtain information from you to update your identity information from time to time pursuant to these laws. If you choose not to provide us with accurate and complete information, the Investment Manager may not be able to process your Application or provide you with the appropriate level of service.

3GD�%TMC�VHKK�DLOKNX�QD@RNM@AKD�LD@RTQDR�SN�L@HMS@HM�SGD�BNMƥCDMSH@KHSX�@MC�RDBTQHSX�NE�XNTQ�ODQRNM@K�information. This information will be retained for record-keeping purposes, however, once your personal information is no longer required, we will destroy it or retain it in such a way that does not identify that it relates to you.

3GD�1DRONMRHAKD�$MSHSX�NQ�SGD�(MUDRSLDMS�,@M@FDQ�L@X�CHRBKNRD�HMENQL@SHNM�SN�@MX�ƥM@MBH@K�HMRSHSTSHNM��KHBDMRDC�ƥM@MBH@K�NQ�OQNEDRRHNM@K�@CUHRDQ�@R�MNLHM@SDC�AX�@�4MHS�GNKCDQ�NQ��VGDM�NAKHFDC�SN�CN�RN�AX�K@V��SN�any party in strict accordance with the relevant legal requirements. The Responsible Entity or the Investment ,@M@FDQ�L@X�TRD�XNTQ�ODQRNM@K�HMENQL@SHNM�SN�NƤDQ�OQNCTBSR�@MC�RDQUHBDR�SG@S�L@X�AD�NE�HMSDQDRS�SN�XNT��unless you request us not to do so.

Investors may request access to the personal information held by the Fund and correct any errors in the information.

&RQVHQWV The following service providers:

� Future Estate Group Pty Ltd;

� Future Funds Management Pty Ltd;

� The Trust Company Limited;

� Pointon Partners;

� AG Architects;

� RPS Australia East Pty Ltd;

� !16�$MSDQOQHRDR��0+#��/SX�+SC��

� Building Services Integration Pty Ltd; and

� !NQMGNQRS��6@QC�/SX�+SC

have made no statement included in this PDS and have given and not withdrawn their consent to the statements made about them in this PDS in the form and context in which they appear. These parties RODBHƥB@KKX�CHRBK@HL�QDRONMRHAHKHSX�ENQ��@MC�KH@AHKHSX�SN�@MX�ODQRNM�HM�SGD�DUDMS�NE�@MX�NLHRRHNM�EQNL��NQ�@MX�false or misleading statement included in any other part of this PDS and have not authorised or caused the issue of any part of this PDS.

Investor considerations

!DENQD�CDBHCHMF�SN�HMUDRS��@OOKHB@MSR�RGNTKC�BNMRHCDQ�VGDSGDQ�4MHSR�@QD�@�RTHS@AKD�HMUDRSLDMS

3GD�@BPTHRHSHNM�@MC�CHRONR@K�NE�4MHSR��@MC�SGD�QDBDHOS�NE�CHRSQHATSHNMR�EQNL�SGD�%TMC��L@X�G@UD�S@W@SHNM�HLOKHB@SHNMR�ENQ�4MHSGNKCDQR �(S�HR�SGD�QDRONMRHAHKHSX�NE�SGD�4MHSGNKCDQR�SN�R@SHREX�SGDLRDKUDR�NE�SGD�O@QSHBTK@Q�S@W@SHNM�SQD@SLDMS�SG@S�@OOKHDR�SN�SGDL�HM�QDK@SHNM�SN�SGD�.ƤDQ�AX�BNMRTKSHMF�OQNEDRRHNM@K�@CUHRNQR

11


Indemnity 3GD�1DRONMRHAKD�$MSHSX�HR�DMSHSKDC�SN�AD�HMCDLMHƥDC�NTS�NE�%TMC�@RRDSR�HM�QDRODBS�NE�

� Liabilities incurred by the Responsible Entity in connection with the Fund and the Fund assets;

� Liabilities incurred by the Responsible Entity relating to the execution of any powers, duties, authorities and discretions vested in it by the Constitution; and

� Costs incurred by the Responsible Entity in relation to proceedings concerning the Fund.

However, such right of indemnity shall not include a right of indemnity where such liabilities or costs were caused by fraud or breach of trust by the Responsible Entity or its related parties.

Such rights of indemnity are also granted to the Investment Manager and Development Manager in connection with the performance of their duties for the Fund.

Reporting 3GD�1DRONMRHAKD�$MSHSX��VGDSGDQ�HSRDKE�NQ�@R�CDKDF@SDC�SN�SGD�(MUDRSLDMS�,@M@FDQ��HMSDMCR�SN�HRRTD�@�

� 2S@SDLDMS�NE�GNKCHMFR�TONM�HRRTD�NE�4MHSR�NQ�VHSGCQ@V@K�

� Quarterly report/newsletter reporting on the status of the Development;

� -NSHƥB@SHNM�NE�JDX�@MC�L@SDQH@K�DUDMSR�QDK@SHMF�SN�SGD�%TMC�VGHBG�@ƤDBS�SGD�4MHSR�

� MMT@K�ƥM@MBH@K�QDONQS��@MC

� MMT@K�S@W@SHNM�RS@SDLDMS�ENQ�D@BG�ƥRB@K�XD@Q�DMCHMF��)TMD

Updated Key Investor Information

(M�BHQBTLRS@MBDR�VGDQD�SGDQD�@QD�@MX�L@SDQH@K�BG@MFDR�BNMBDQMHMF�SGD�%TMCŗR�ONKHBHDR�VHSG�QDRODBS�SN�

� Gearing ratio;

� Interest cover ratio;

� Fund borrowings;

� #HUDQRHƥB@SHNM�

� 5@KT@SHNM�ONKHBX�

� Related party transactions;

� Distribution practices; and

� Withdrawal arrangements

RTBG�BG@MFDR�VHKK�AD�MNSHƥDC�SN�(MUDRSNQR

&RPSODLQWV�handling

3GD�"NMRSHSTSHNM�BNMS@HMR�OQNUHRHNMR�QDF@QCHMF�SGD�L@MMDQ�HM�VGHBG�BNLOK@HMSR�EQNL�HMUDRSNQ�4MHSGNKCDQR� are to be dealt with and sets out a complaints procedure to be followed by complainants and the Responsible Entity.

The Responsible Entity has procedures in place for dealing with and considering complaints from investors.

If you have a complaint or query in relation to the administration or management of the Fund then please contact the Investment Manager by email at [email protected] or by post to Future Funds Management Pty Ltd, C/O Level 7 AMP Centre, 50 Bridge Street, Sydney NSW 2000.

The Investment Manager will acknowledge receipt of the complaint within 20 days of receipt of the complaint and shall then ensure that the complaint receives proper consideration.

Labour standards and environmental, social or ethical considerations

The Responsible Entity does not take labour standards or environmental, social or ethical considerations into account for the purposes of selecting, retaining or realising investments in the Fund.

11


TAXATION12.

This section provides a brief guide in relation to S@W@SHNM�HRRTDR�@ƤDBSHMF�SGD�%TMC�@MC�(MUDRSNQR�@MC�is not intended to be a complete statement of the relevant taxation laws. This section is not intended to be tax advice. The tax implications of investing can be complex and Investors are advised to seek independent professional advice in relation to taxation laws and how SGDRD�L@X�@ƤDBS�XNTQ�HMUDRSLDMS�HM�SGD�%TMC�OQHNQ�SN�deciding to invest in the Fund.


12Taxation of the Fund

(Public Trading Trust)

!@RDC�NM�BTQQDMS�K@VR�@MC�SGDHQ�HMSDQOQDS@SHNM�@R�@S�SGD�C@SD�NE�SGHR�/#2��SGD�%TMC�VHKK�KHJDKX�AD�BK@RRHƥDC�@R�@�OTAKHB�SQ@CHMF�SQTRS�HM�@BBNQC@MBD�VHSG�#HUHRHNM��"�HM�/S�(((�NE�SGD�(MBNLD�3@W� RRDRRLDMS� BS��"SG��@R�HSR�TMHSR�@QD�NƤDQDC�SN�SGD�OTAKHB�@MC�NQ�SGDX�VHKK�AD�GDKC�AX�LNQD�SG@M��TMHS�GNKCDQR �3GD�BNMRDPTDMBDR�of being a public trading trust are that the Fund will be subject to tax in the same manner as a company and not taxed as a trust.

3GD�%TMC�VHKK�SGDQDENQD�AD�@�RDO@Q@SD�S@W@AKD�DMSHSX�EQNL�HSR�(MUDRSNQ�4MHSGNKCDQR�@MC�SGD�%TMC�VHKK�AD�KH@AKD�ENQ� TRSQ@KH@M�HMBNLD�S@W�NM�HSR�S@W@AKD�HMBNLD�@S�SGD�BNQONQ@SD�S@W�Q@SD�VGHBG�HR�BTQQDMSKX��

The Fund will receive franking credits for the amount of tax paid by it. The Fund will be able to frank CHRSQHATSHNMR�L@CD�AX�HS�SN�QDRHCDMS�(MUDRSNQR�RHLHK@Q�SN�SGD�L@MMDQ�HM�VGHBG�@�BNLO@MXŗR�CHUHCDMCR�B@M�AD�EQ@MJDC �3GD�CHRSQHATSHNMR�@QD�QDEDQQDC�SN�@R�Ŗ4MHS�3QTRS�#HUHCDMCRŗ

4MHS�3QTRS�#HUHCDMCR�O@HC�SN�QDRHCDMS�(MUDRSNQR�VHKK�AD�@RRDRR@AKD�NM�SGD�R@LD�A@RHR�@R�BNQONQ@SD�CHUHCDMCR�O@HC�SN�RG@QDGNKCDQR��FQNRRDC�TO�ENQ�@MX�EQ@MJHMF�BQDCHSR�@MC�HMBKTCDC�HM�@�QDRHCDMS�(MUDRSNQŗR�@RRDRR@AKD�HMBNLD�HM�SGD�XD@Q�HM�VGHBG�SGD�4MHS�3QTRS�#HUHCDMC�HR�L@CD � MX�EQ@MJHMF�BQDCHSR�@SS@BGHMF�SN�SGD�4MHS�3QTRS�#HUHCDMC�L@X�AD�TRDC�SN�NƤRDS�@MX�S@W�KH@AHKHSHDR�NE�SGD�QDRHCDMS�(MUDRSNQ

(E�4MHS�3QTRS�#HUHCDMCR�@QD�MNS�EQ@MJDC�@MC�QDK@SD�SN�TMS@WDC�@LNTMSR�HM�SGD�%TMC�SGDM�SGDRD�@LNTMSR�@QD�SN�AD�S@W@AKD�ENQ�SGD�QDRHCDMS�4MHSGNKCDQ�HM�SGD�R@LD�L@MMDQ�@R�TMEQ@MJDC�BNLO@MX�CHUHCDMCR

4MHS�3QTRS�#HUHCDMCR�O@HC�SN�MNM�QDRHCDMS�(MUDRSNQR�VHKK�AD�EQDD�NE�VHSGGNKCHMF�S@W�HE�SGD�CHUHCDMCR�@QD�ETKKX�EQ@MJDC �4MEQ@MJDC�CHUHCDMCR�@QD�RTAIDBS�SN�CHUHCDMC�VHSGGNKCHMF�S@W�@S�SGD�Q@SD�NE��ENQ�QDRHCDMSR�NE�MNM�SQD@SX�BNTMSQHDR��@MC�TRT@KKX�@S��ENQ�QDRHCDMSR�NE�SQD@SX�BNTMSQHDR

The Fund will generally be taxed on revenue account on gains arising from its activities.

Where the Fund realises a revenue loss, the loss cannot be passed on to Investors for tax purposes. Instead, KNRRDR�@QD�B@QQHDC�ENQV@QC�HM�SGD�%TMC�@MC�NƤRDS�@F@HMRS�@RRDRR@AKD�HMBNLD�CDQHUDC�HM�ETSTQD�XD@QR �4MCDQ�the taxation laws, there are restrictions on the ability of the Fund to claim an allowable deduction in respect NE�QDUDMTD�KNRRDR��OQHNQ�@MC�BTQQDMS�XD@QR� �3GD�%TMC�VNTKC�MDDC�SN�R@SHREX�SGD�SDRSR�ENQ�CDCTBSHAHKHSX�VGHBG�HMBKTCD�SGD�%TMC�LDDSHMF�SGD�FQD@SDQ�SG@M��TMCDQKXHMF�NVMDQRGHO�SDRS��H D �BNMSHMTHSX�NE�@S�KD@RS��NE�SGD�%TMCŗR�4MHSGNKCDQR� �

The Fund will acquire properties in the course of its business. The properties will generally be acquired and NVMDC�AX�SGD�%TMC�ENQ�@�OQNƥS�L@JHMF�OTQONRD�@MC�OQNƥSR�CDQHUDC�EQNL�SGD�R@KD�NE�SGD�OQNODQSHDR�VHKK�AD�taxed as ordinary income.

The trading stock rules apply to property held by the Fund for the purposes of development and sale.

The law in relation to the taxation of the Fund may be amended from time to time. On an ongoing basis, Investors should seek their own professional advice in relation to their own taxation implications of HMUDRSHMF�@MC�GNKCHMF�4MHSR�HM�SGD�%TMC

Taxation of Investors

The taxation implications for Investors may vary depending on the Investors circumstances and therefore all Investors are encouraged to seek independent professional taxation advice in relation to their own circumstances. The following is a general summary of the taxation rules that could apply to Investors investing in the Fund.

6GDQD�SGD�%TMC�HR�SQD@SDC�@R�@�OTAKHB�SQ@CHMF�SQTRS�ENQ�S@W@SHNM�OTQONRDR��4MHS�3QTRS�#HUHCDMCR�LTRS�AD�HMBKTCDC�HM�SGD�QDRHCDMS�(MUDRSNQŗR�@RRDRR@AKD�HMBNLD�HM�SGD�XD@Q�HM�VGHBG�SG@S�CHRSQHATSHNM�HR�L@CD

3GD�QDBDHOS�NE�4MHS�3QTRS�#HUHCDMCR�AX�@�4MHSGNKCDQ�VGHBG�@QD�EQ@MJDC�VHKK�AD�S@WDC�SN�SGD�QDRHCDMS�4MHSGNKCDQ�HM�SGD�R@LD�L@MMDQ�@R�@�EQ@MJDC�CHUHCDMC�EQNL�@�BNLO@MX�VNTKC�AD�S@WDC �3GD�QDRHCDMS�4MHSGNKCDQ�VNTKC�HMBKTCD�SGD�FQNRRDC�TO�@LNTMS��SGD�4MHS�3QTRS�#HUHCDMC�OKTR�SGD�EQ@MJHMF�BQDCHS�@LNTMS��in their assessable income. The resident Investor would be entitled to a franking rebate equal to the franking credit. In circumstances where there are excess franking credits over and above the tax payable by the QDRHCDMS�(MUDRSNQ�SGDRD�@LNTMSR�L@X�AD�QDETMC@AKD�SN�(MUDRSNQR �%NQ�4MHS�3QTRS�#HUHCDMCR�SG@S�@QD�TMEQ@MJDC��QDRHCDMS�(MUDRSNQR�@QD�@RRDRRDC�NM�SGD�TMEQ@MJDC�4MHS�3QTRS�#HUHCDMC�@LNTMS�@MC�MN�EQ@MJHMF�BQDCHS�VNTKC�be available to the resident Investor.

3GD�SQD@SLDMS�NE�4MHS�3QTRS�#HUHCDMCR�@R�EQ@MJDC�CDODMCR�NM�SGDHQ�B@SDFNQHR@SHNM�@R�řDPTHSXŚ�TMCDQ�SGD�#DAS�$PTHSX�1TKDR � KK�TMHSR�NSGDQ�SG@M�SGD�#��"K@RR�4MHSR�RGNTKC�AD�SQD@SDC�@R�řDPTHSXŚ �(S�HR�LNRS�KHJDKX�SG@S�SGD�#��"K@RR�4MHSR�L@X�AD�SQD@SDC�@R�CDAS�CTD�SN�SGDHQ�LHMHLTL�ƥWDC�Q@SD�NE�QDSTQM �(M�SG@S�B@RD�SGD�QDSTQM


Taxation of Investors

continued...

NM�SGD�#��"K@RR�4MHSR�VHKK�AD�SQD@SDC�@R�HMSDQDRS��@MC�RN�MNS�EQ@MJ@AKD��ATS�VHKK�AD�S@W�CDCTBSHAKD�SN�SGD�%TMC �3GD�ENKKNVHMF�BNLLDMSR�QDK@SD�SN�@KK�TMHSR�NSGDQ�SG@M�SGD�#��"K@RR�4MHSR

4MHS�3QTRS�#HUHCDMCR�O@HC�SN�MNM�QDRHCDMS�(MUDRSNQR�VHKK�AD�EQDD�NE�VHSGGNKCHMF�S@W�HE�SGD�CHUHCDMCR�@QD�ETKKX�EQ@MJDC �4MEQ@MJDC�CHUHCDMCR�@QD�RTAIDBS�SN�CHUHCDMC�VHSGGNKCHMF�S@W�@S�SGD�Q@SD�NE��ENQ�QDRHCDMSR�NE� MNM�SQD@SX�BNTMSQHDR��@MC�TRT@KKX�@S��ENQ�QDRHCDMSR�NE�SQD@SX�BNTMSQHDR

For any amounts paid to resident Investors by the Fund which are a return of capital, these amounts will be SQD@SDC�@R�@�QDCTBSHNM�HM�SGD�B@OHS@K�F@HMR�S@W�BNRS�A@RD�NE�SGD�(MUDRSNQŗR�4MHSR � �B@OHS@K�F@HM�@QHRDR�SN�SGD�DWSDMS�SG@S�SGD�@LNTMS�NE�SGD�B@OHS@K�QDSTQM�DWBDDCR�SGD�QDRHCDMS�(MUDRSNQŗR�BNRS�A@RD�NM�SGDHQ�4MHSR

(E�@�QDRHCDMS�(MUDRSNQ�GNKCR�4MHSR�HM�SGD�%TMC�NM�B@OHS@K�@BBNTMS�SGDM�@�CHRONR@K�NE�SGNRD�4MHSR�L@X�AD�subject to capital gains tax on the amount. The realised gain would be included in the calculation of the (MUDRSNQŗR�MDS�B@OHS@K�F@HM�ENQ�SGD�HMBNLD�XD@Q �3GD�MDS�B@OHS@K�F@HM��H D �VGDQD�QD@KHRDC�B@OHS@K�F@HMR�DWBDDC�B@OHS@K�KNRRDR��VNTKC�AD�HMBKTCDC�HM�SGD�(MUDRSNQŗR�@RRDRR@AKD�HMBNLD�ENQ�SGD�XD@Q �

(E�@�QDRHCDMS�(MUDRSNQ�G@R�GDKC�SGDHQ�4MHSR�ENQ��LNMSGR�NQ�LNQD�SGDM�SGD�(MUDRSNQ�RGNTKC�AD�@AKD�SN�TSHKHRD�SGD��FDMDQ@K�B@OHS@K�S@W�CHRBNTMS�HM�B@KBTK@SHMF�SGD�B@OHS@K�F@HM�@LNTMS �%NQ�(MUDRSNQR�VGHBG�@QD�BNLOKXHMF�RTODQ@MMT@SHNM�ETMCR��SGHR�B@OHS@K�F@HMR�S@W�CHRBNTMS�ODQBDMS@FD�VNTKC�AD��

1DRHCDMS�(MUDRSNQR�VGN�G@UD�ANQQNVDC�ETMCR�SN�@BPTHQD�SGDHQ�4MHSR�HM�SGD�%TMC�L@X�AD�DMSHSKDC�SN�CDCTBSHNMR�ENQ�SGD�HMSDQDRS�O@XLDMSR�HMBTQQDC�AX�SGDL�NM�SG@S�ƥM@MBD

-NM�QDRHCDMS�HMUDRSNQR�GNKCHMF�KDRR�SG@M��NE�SGD�TMHSR�HM�SGD�%TMC�VHKK�MNS�AD�RTAIDBS�SN�B@OHS@K�F@HMR�S@W �'NVDUDQ��@R�SGD�%TMC�VHKK�AD�K@MC�QHBG��MNM�QDRHCDMS�HMUDRSNQR�GNKCHMF��NQ�LNQD�NE�SGD�TMHSR�VHKK�AD�RTAIDBS�SN�B@OHS@K�F@HMR�S@W��@MC�SGDX�@QD�MN�KNMFDQ�DMSHSKDC�SN�@��FDMDQ@K�B@OHS@K�F@HMR�S@W�CHRBNTMS

%NQ�(MUDRSNQR�VGN�@BPTHQD�@�OQNODQSX�HM�@MX�NE�SGD�%TMCŗR�#DUDKNOLDMS�/QNIDBSR��SGD�(MUDRSNQR�VHKK�AD�subject to stamp duty on the acquisition of the property. If an Investor is holding the property on capital @BBNTMS��SGD�(MUDRSNQ�VHKK�@KRN�AD�RTAIDBS�SN�B@OHS@K�F@HMR�S@W�HM�QDRODBS�NE�SGD�R@KD�NE�RTBG�OQNODQSX��HE�SGDX�choose to sell the property). Investors who rent the property would need to include the rental income for any given year in their assessable income in respect of that income year.

Taxation of Fund

(if the Fund is not treated as a Public Trading Trust)

(M�SGD�DUDMS�SG@S�SGD�%TMC�@S�@MX�RS@FD�V@R�MNS�CDDLDC�SN�AD�@�OTAKHB�SQ@CHMF�SQTRS��VGHBG�VNTKC�AD�S@WDC�@R�@�BNQONQ@SD�DMSHSX��D F �ADB@TRD�HS�ADB@LD�GDKC�AX�KDRR�SG@M��4MHSGGNKCDQR��@MC�V@R�SGDQDENQD�SN�AD�taxed in accordance with ordinary taxation rules as apply to trusts, then the following would apply.

The Fund would intend to fully distribute its taxable income each year so that it will not incur an income tax liability. In this situation, any income distributed to Investors by the Fund will be assessable to Investors and S@W@AKD�HM�SGD�XD@Q�SN�VGHBG�SGDX�QDK@SD �2NLD�CHRSQHATSHNMR�L@X�MNS�MDDC�SN�AD�HMBKTCDC�HM�@�4MHSGNKCDQŗR�S@W�QDSTQM�ATS�L@X�RNLDSHLDR�QDCTBD�SGD�BNRS�A@RD�NE�@�4MHSGNKCDQŗR�4MHSR�ENQ�B@OHS@K�F@HMR�S@W�OTQONRDR �

3GD�1DRONMRHAKD�$MSHSX�VHKK�CDSDQLHMD�SGD�CHRSQHATS@AKD�HMBNLD�NE�SGD�%TMC�ENQ�D@BG�ƥM@MBH@K�XD@Q�@MC�VHKK�B@KBTK@SD�D@BG�4MHSGNKCDQŗR�HMBNLD�DMSHSKDLDMS�HM�@BBNQC@MBD�VHSG�SGD�"NMRSHSTSHNM ��(S�HR�@MSHBHO@SDC�SG@S�4MHSGNKCDQR�VHKK�AD�CDDLDC�OQDRDMSKX�DMSHSKDC�SN�SGDHQ�QDRODBSHUD�HMBNLD�DMSHSKDLDMS�@R�@S�SGD�DMC�NE�SGD�ƥM@MBH@K�XD@Q � BBNQCHMFKX��SGD�S@W@SHNM�KH@AHKHSX�VHSG�QDRODBS�SN�S@W@AKD�HMBNLD�NE�SGD�%TMC�VNTKC�AD�HLONRDC�TONM�SGD�4MHSGNKCDQR

Investors who are not Australian residents for taxation purposes may have non-resident withholding tax withheld from distributions at prescribed rates.

Revenue losses incurred by the Fund could not be passed on to Investors for taxation purposes and would NQCHM@QHKX�AD�B@QQHDC�ENQV@QC�HM�SGD�%TMC�@MC�NƤRDS�@F@HMRS�@RRDRR@AKD�HMBNLD�CDQHUDC�AX�SGD�%TMC�HM�ETSTQD�ƥM@MBH@K�XD@QR �

Tax File Number (TFN) or Australian Business Number �$%1��QRWLƩFDWLRQ

(MUDRSNQR�@QD�MNS�NAKHFDC�SN�OQNUHCD�SGDHQ�3%-�NQ� !-��HE�@�BNLO@MX��ATS�HE�XNT�OQNUHCD�MDHSGDQ�@MC�CNMŗS�claim an exemption, the Fund will be required to deduct tax from your distributions at the highest marginal S@W�Q@SD��OKTR�SGD�,DCHB@QD�+DUX��SN�LDDS� TRSQ@KH@M�3@W@SHNM�.ƧBD�QDPTHQDLDMSR

Goods and Services Tax (GST)

3GD�@BPTHRHSHNM��QDCDLOSHNM�@MC�NQ�SQ@MREDQ�NE�4MHSR�HM�SGD�%TMC�RGNTKC�MNS�AD�RTAIDBS�SN�&23��@MC�@MX�distributions made by the Fund to Investors should not give rise to any GST consequences.


� ‘Business Day’ means a day other than a Saturday or Sunday on which banks are open for general banking business in Sydney.

� Ś&��&ODVV�8QLWś�LD@MR�@�"��"K@RR�4MHS�in the Fund on the terms set out in this PDS.

� Ś&ODVVś�QDEDQR�SN�@�BK@RR�NE�4MHSR�HRRTDC�HM�SGD�%TMC�ENQ�@M�.ƤDQ�BNMCTBSDC�in connection with a particular #DUDKNOLDMS�/QNIDBS��HM�SGD�B@RD�NE�SGHR�/#2��#QHESVNNC�"K@RR�4MHSR�HRRTDC�in connection with the Development).

� Ś&ODVV�$VVHWVś refers to the assets of the Fund which relate to a particular "K@RR�NE�4MHSR�HRRTDC�HM�BNMMDBSHNM�with a particular Development Project.

� Ś&RPSOLDQFH�3ODQś means the Compliance Plan for the Fund dated 15 March 2011 and any subsequent amendments.

� Ś&RQVWLWXWLRQś means the Constitution of the Fund and as amended from time to time.

� Ś&RUSRUDWLRQV�$FWś means the "NQONQ@SHNMR� BS��"SG��@MC�HSR�regulations.

� Ś&XVWRGLDQś means The Trust Company Limited ABN 59 004 027 749.

� Ś'��&ODVV�8QLWś�LD@MR�@�#��"K@RR�4MHS�in the Fund, issued on the terms set out in this PDS.

� ‘Development’ means the building and construction of a property development under a Development Project to be conducted by the Fund.

� ‘Development Manager’ means the manager of a Development to be conducted by the Fund, as appointed by the Responsible Entity or its subsidiary undertaking the Development Project.

� ‘Development Proceeds’ means net proceeds of the Development after paying all costs, expenses and KH@AHKHSHDR�RTƤDQDC�NQ�HMBTQQDC�HM�QDK@SHNM�SN�SGHR�.ƤDQ��SGD�OTQBG@RD�NE�the Property and the Development, and less any fees associated with SGD�#DUDKNOLDMS�@MC�SGD�.ƤDQ��@MC�@ESDQ�QDO@XLDMS�NE�@KK�ƥM@MBD�@MC�associated costs in connection with the Development.

� Ś'HYHORSPHQW�3URƩWVś equals the #DUDKNOLDMS�/QNBDDCR�KDRR�S@W��HE�payable by the Fund).

� ‘Development Project’ means a property development project to be conducted by the Fund under the structure set out in this PDS.

� ‘Development Timeframe’ means the anticipated timeframe for the Development as set out in Section 2.

� Ś'ULIWZRRG�&ODVVHV�RI�8QLWVś means SGD� ��"K@RR�4MHSR��!��"K@RR�4MHSR��"��"K@RR�4MHSR�@MC�#��"K@RR�4MHSR�HM�SGD�%TMC�NƤDQDC�TMCDQ�SGHR�/#2�HM�connection with the Driftwood Project.

� ‘Driftwood Project’ means the raising NE�ETMCR�TMCDQ�SGHR�.ƤDQ�@MC�SGD�carrying out of the Development of the Property.

� ‘Financial year’ means the period commencing 01 July and ending 30 June.

� ‘Fund’ means the Future Estate Australian Residential Property Fund ARSN 134 516 724.

� ‘Future Estate Group’ means Future $RS@SD�&QNTO�/SX�+SC�� "-��363) and its related group companies.

� ‘Gross Realisation Value’ means the value of the gross revenues derived from the sale of property assets comprised in a Development.

GLOSSARYIn this PDS:

� Ś$��&ODVV�8QLWś�LD@MR�@M� ��"K@RR�4MHS�in the Fund on the terms set out in this PDS.

� ‘AFSL’�LD@MR� TRSQ@KH@M�ƥM@MBH@K�services licence.

� ‘Apartment’ means an apartment to be built under the Development, and includes 1 bedroom apartments, 2 ADCQNNL�@O@QSLDMSR��RS@MC@QC��@MC� ��ADCQNNL�@O@QSLDMSR��OQDLHTL�

� Ś$SDUWPHQW�3XUFKDVH�&RQWUDFWś means a contract to be entered into by an Investor for the purchase of an Apartment in the Development NƤ�SGD�OK@M � �OQN�ENQL@�BNOX�NE�the Apartment Purchase Contract is accompanying this PDS.

� ‘Apartment Purchase Price’ means the purchase price for an Apartment as listed in an Apartment Purchase Contract.

� ‘Application’ means a valid application ENQ�4MHSR�TRHMF�@M�@OOKHB@SHNM�ENQL�attached to, or accompanying this PDS, and accompanied by monies paid by a prospective Investor in respect of the application.

� Ś$6,&ś means the Australian Securities and Investments Commission or any regulatory body which replaces it or performs its functions.

� Ś$6;ś means the Australian Securities Exchange.

� ‘Bank account’ means an account with an Australian Authorised Approved #DONRHS�3@JHMF�(MRSHSTSHNM��VGHBG�includes a building society and credit union).

� Ś%��&ODVV�8QLWś�LD@MR�@�!��"K@RR�4MHS�in the Fund on the terms set out in this PDS.

� ‘Board’ means the board of directors of the Responsible Entity.

13.


� ‘GST’�LD@MR�&23�@R�CDƥMDC�HM�SGD� �-DV�3@W�2XRSDL��&NNCR�@MC�2DQUHBDR�3@W�� BS��"SG��@R�@LDMCDC�EQNL�time to time.

� ‘Investment Manager’ means the Investment Manager appointed by the Responsible Entity in respect of the management of the Fund, being Future Funds Management Pty Ltd.

� ‘Investor’ or ‘Unit holder’ means a GNKCDQ�NE�4MHSR�HM�SGD�%TMC

� Ś2ƨHUś�LD@MR�SGD�NƤDQ�NE�4MHSR�TMCDQ�this PDS.

� Ś2ƨHU�&ORVH�'DWHś means 30 November 2013 or any such other date as determined by the Responsible Entity at its discretion.

� Ś2ƨHU�2SHQ�'DWHś means 02 July 2013.

� ‘PDS’ means this Product Disclosure Statement dated 02 July 2013.

� Ś3HUIRUPDQFH�)HH�&DOFXODWLRQ�3HULRGś has the same meaning as that term is CDƥMDC�HM�SGD�"NMRSHSTSHNM

� ‘Property’ means the property located at 34 Bourke Street, Blacks Beach, Queensland.

� ‘Recipient’ means the persons receiving this PDS.

� ‘Responsible Entity’ means Axias Funds Ltd ABN 44 131 251 968, AFSL 327340.

� ‘Senior Lender’ means the senior lender to the Developments.

� Ś7RWDO�'HYHORSPHQW�&RVWś means the total forecast cost of the Development as set out in Section 6.8.

� ‘Unit’�LD@MR�@�4MHS�HM�SGD�%TMC�NƤDQDC�TMCDQ�SGHR�/#2��ADHMF�DHSGDQ�@M� ��"K@RR�4MHS��!��"K@RR�4MHS��"��"K@RR�4MHS�NQ�#��"K@RR�4MHS�

� ‘we’, ‘our’, ‘us’ means the Responsible Entity of the Fund.

how to invest

14.



14.1 Application Process and Forms

14.1.1 How to Invest in the Fund

OOKHB@SHNMR�ENQ�4MHSR�NƤDQDC�TMCDQ�SGHR�/#2�L@X�AD�L@CD�NM�SGD�Application Form attached to and forming part of this PDS. Please read the instructions on the Application Form carefully before completing it.

Completed Application Forms may be accompanied by a cheque in Australian dollars, crossed “Not Negotiable” and made payable to “The Trust Company Limited ACF Axias Funds Limited” and forwarded to:

Future Estate Australian Residential Property FundC/O Future Funds Management Pty LtdLevel 7 AMP Centre50 Bridge StreetSydney, NSW, 2000

OOKHB@SHNM�LNMHDR�L@X�@KRN�AD�CDONRHSDC�HMSN�SGD�%TMCŗR�subscription account:

7KH�7UXVW�&RPSDQ\�/LPLWHG�$&)�$[LDV�)XQGV�/LPLWHGBSB: 082 057Account number: 94 501 9317

All Application monies will be deposited into a separate bank account of the Custodian as the agent for the Responsible Entity TMSHK�RTBG�SHLD�@R�SGD�4MHSR�@QD�HRRTDC�SN�SGD�@OOKHB@MS�(MUDRSNQR�or the Application monies returned. Any interest earned on this @BBNTMS�L@X�AD�QDS@HMDC�ENQ�SGD�ADMDƥS�NE�SGD�%TMC

(MUDRSNQR�@OOKXHMF�ENQ� ��"K@RR��!��"K@RR�@MC�"��"K@RR�4MHSR�LTRS�also submit an executed Apartment Purchase Contract together VHSG�SGDHQ� OOKHB@SHNM�ENQ�4MHSR � OOKHB@SHNMR�ENQ� ��"K@RR��!��"K@RR�@MC�"��"K@RR�4MHSR�VHKK�MNS�AD�OQNBDRRDC�TMSHK�RTBG�SHLD�@R�the Investor has also properly submitted an executed Apartment Purchase Contract.

14.1.2 Acceptance of Applications

A completed and lodged Application Form together with cheque or funds transfer for the Application monies constitutes a binding and HQQDUNB@AKD�NƤDQ�SN�RTARBQHAD�ENQ�SGD�MTLADQ�NE�4MHSR�RODBHƥDC�HM�SGD�Application Form on the terms set out in this PDS and the Constitution.

3GD�1DRONMRHAKD�$MSHSX�HR�TMCDQ�MN�NAKHF@SHNM�SN�HRRTD�4MHSR�SN�any Applicant, and retains the right to reject any Application or to accept only part or all of an Application. Application monies which have not been allocated will be refunded.

OOKHB@SHNMR�VGHBG�@QD�CDDLDC�HMU@KHC��D F �SGD�ENQL�V@R�MNS�signed) will not be processed and the application money will remain in the account until the correct documentation is received. If correct documentation is not received within one month, the application money will be returned to you by cheque, with no interest payable.

Further, if the targeted minimum raising amount is not in fact raised then the Responsible Entity reserves the right to elect not to OQNBDDC�VHSG�SGD�.ƤDQ�HM�VGHBG�B@RD�@KK� OOKHB@SHNM�,NMHDR�QDBDHUDC�will by returned by the Custodian to Investors without interest VHSGHM��C@XR�@ESDQ�SGD�.ƤDQ�"KNRD�#@SD

The Responsible Entity may at any time decide to withdraw this /#2�@MC�SGD�.ƤDQ �(E�SGD�.ƤDQ�HR�VHSGCQ@VM��SGD�"TRSNCH@M�VHKK�return all Application Monies as soon as practicable, or at the K@SDRS��VHSGHM��C@XR�NE�VHSGCQ@VHMF�SGD�.ƤDQ

14.2 Applications

14.2.1 Anti-Money Laundering & Counter Terrorism Financing Act 2006

Applicants, whether individuals, companies, partnerships or %TMCR��VHKK�AD�QDPTHQDC�SN�OQNUHCD�@OOQNOQH@SD�HCDMSHƥB@SHNM�SN�the Responsible Entity at the time an Application is lodged, or OQHNQ�SN�@MX�4MHSR�ADHMF�HRRTDC�AX�SGD�1DRONMRHAKD�$MSHSX

By applying to invest in the Fund, you warrant that:

� you are not aware and have no reason to suspect that:

�@�� the monies provided to the Responsible Entity for your investment in the Fund have been derived from or related SN�@MX�LNMDX�K@TMCDQHMF��SDQQNQHRL�ƥM@MBHMF�NQ�NSGDQ�illegal activities, whether prohibited under Australian law, international law or convention or by agreement; or

�A�� SGD�OQNBDDCR�NE�XNTQ�HMUDRSLDMS�VHKK�AD�TRDC�SN�ƥM@MBD�any illegal activities; and

� XNT�@QD�MNS�@�ONKHSHB@KKX�DWONRDC�ODQRNM�NQ�NQF@MHR@SHNM��HM�accordance with the phrase used and applied in the Anti-Money Laundering & Counter-Terrorism Financing Act 2006 and the Rules made under that Act).

14.2.2 Privacy

The Investment Manager recognise that your privacy is important to you.

Any personal details provided to the Investment Manager when you invest, or at any other time in relation to your investment, will be used to administer and report on your investment with us, and for purposes related to that. The Investment Manager may also disclose information to other persons to enable us to provide services to you. Such people include:

� third parties we appoint as advisers, agents or service providers such as auditors, custodians or legal advisers;

� third parties you authorise to act on your behalf in relation to XNTQ�HMUDRSLDMS�RTBG�@R�XNTQ�HMUDRSLDMS�BNMRTKS@MS��ƥM@MBH@K�adviser, broker or solicitor; and

� Government authorities when and to the extent required by law.

By making an application to invest in the Fund you will have consented to our collection and use of your personal information as stated above.

The Investment Manager aims to keep your personal details as up to date and accurate as possible. If any of your personal CDS@HKR�@QD�HMBNQQDBS�NQ�G@UD�BG@MFDC��NQ�HE�XNT�VHRG�SN�ƥMC�NTS�what personal details the Investment Manager hold with respect to you, please contact the Investment Manager at [email protected] or write to the Investment Manager at the address listed in this PDS.

108 FUTURE ESTATE AUSTRALIAN RESIDENTIAL PROPERTY FUND

APPLICATION FORM

15.


Future Estate Australian Residential Property Fund

ARSN 134 516 724

This Application Form relates to the Application for units in Future Estate Australian Residential Property Fund (ARSN 134 516 724) under the PDS dated 02 July 2013 issued by Axias Funds Ltd (ACN 131 251 968). This form must be accompanied by the PDS when provided to any person.

/HM�BGDPTD�GDQD��CN�MNS�RS@OKD�

��$33/,&$17��6�� (Individual, Joint, Director or Trustee)

Full Name (Title, given name(s) & Surname)

��Date of Birth

��/��/��Joint Applicant #2 - Full Name (Title, given name(s) & Surname)

��Date of Birth

��/��/��Joint Applicant #3 - Full Name (Title, given name(s) & Surname)

��Date of Birth

��/��/��$33/,&$17 (Company, Trust or Self-Managed Super Fund Name)

Company, Trust or SMSF

��Line of Business

��ABN/ACN

��&217$&7�'(7$,/6 (Street Address and a phone number must be supplied as a minimum)

Contact Name

��Residential Address

��Suburb

�� State Postcode

��Phone Number

�� Mobile Number

��Email Address

��3RVWDO�$GGUHVV��&RPSOHWH�LI�GLǉHUHQW�IURP�\RXU�UHVLGHQWLDO�DGGUHVV��$OO�FRUUHVSRQGHQFH�ZLOO�EH�VHQW�KHUH�

��Suburb


��Phone Number

�� Mobile Number

��

Application Form


��7$;�),/(�180%(5�2)�$33/,&$17�6�

Applicant

�� TFN

�� Exemption (if any)

Joint Applicant #2

�� TFN


Joint Applicant #3

�� TFN


5 ADVISER DETAILS ��7R�EH�FRPSOHWHG�E\�ǊQDQFLDO�DGYLVHU�

Financial Adviser Name

��Adviser Company Name

��AFSL Holder

��AFSL Number

�� Authorised Representative Number

��Adviser Postal Address

��Suburb


��Business phone number

�� Mobile phone number

��Adviser email address

��Assistant name

��Business phone number

�� Mobile phone number

��Assistant email address

��For more information regarding this investment, please contact: Adviser / Assistant (Circle one)

,�ZRXOG�OLNH�WR�UHFHLYH�FRQǊUPDWLRQ�RI�P\�FOLHQWV�LQYHVWPHQWV�DQG�ZLWKGUDZDOV��(OHFWURQLF��+DUG�FRS\��3OHDVH�FLUFOH�

I would like to receive a copy of my client’s annual tax statements: Electronic / Hard copy (Please circle)

��$'9,6(5�5(081(5$7,21�(/(&7,21��7R�EH�FRPSOHWHG�E\�ǊQDQFLDO�DGYLVHU�

If fee details are not completed, no upfront professional fee for service will be paid to an advisor

Have you and your client agreed on you receiving all or part of the upfront professional fee for service: YES / NO (Please circle)

If yes, circle the percentage to be paid: 0% 1% 2% 3%


��$'9,6(5�'(&/$5$7,21��7R�EH�FRPSOHWHG�E\�ǊQDQFLDO�DGYLVHU�

FINANCIAL ADVISER DECLARATION – AML LEGISLATION VERIFICATION RECORDS AND CUSTOMER IDENTIFICATION PROCEDURES

/KD@RD�BNLOKDSD�@MC�DMBKNRD�@�BNOX�NE�SGD�QDKDU@MS�HCDMSHƥB@SHNM�ENQL�HRRTDC�AX�(MUDRSLDMS�@MC�%HM@MBH@K�2DQUHBDR� RRNBH@SHNM�+HLHSDC�@MC�SGD�%HM@MBH@K�/K@MMHMF� RRNBH@SHNM�NE� TRSQ@KH@��(%2 �%/ �%NQL��HM�QDK@SHNM�SN�SGD� OOKHB@MS�QDEDQQDC�SN�HM�SGHR� Application Form.

%\�FURVVLQJ�WKLV�ER[�DQG�VXEPLWWLQJ�WKH�,)6$�)3$�)RUP�ZLWK�WKLV�$SSOLFDWLRQ�)RUP��WKH�ƩQDQFLDO�DGYLVHU�represents to the Responsible Entity that they:

1. have followed the IFSA/FPA Industry Guidance Note No.24 and any other applicable AML Legislation;

2. VHKK��L@JD�@U@HK@AKD�SN�SGD�1DRONMRHAKD�$MSHSX��NM�QDPTDRS��NQHFHM@K�UDQHƥB@SHNM�@MC�HCDMSHƥB@SHNM�QDBNQCR�NAS@HMDC�AX�SGD�ƥM@MBH@K�@CUHRDQ�HM�QDRODBS�NE�SGD� OOKHB@MS��ADHMF�SGNRD�QDBNQCR�QDEDQQDC�SN�HM�SGD�(%2 �%/ �%NQL�

3. VHKK�OQNUHCD�CDS@HKR�NE�SGD�BTRSNLDQ�HCDMSHƥB@SHNM�OQNBDCTQDR�@CNOSDC�AX�SGD�ƥM@MBH@K�@CUHRDQ�HM�QDK@SHNM�SN�SGD�Applicant;

4. G@UD�JDOS�@�QDBNQC�NE�SGD� OOKHB@MSŗR�HCDMSHƥB@SHNM�@MC�UDQHƥB@SHNM�@MC�VHKK�QDS@HM�SGDRD�NM�ƥKD�ENQ�@�ODQHNC�NE�RDUDM�XD@QR�after their relationship with the Applicant has ended;

5. VHKK�TRD�QD@RNM@AKD�DƤNQSR�SN�NAS@HM�@CCHSHNM@K�HMENQL@SHNM�EQNL�SGD� OOKHB@MS�HE�SGD�1DRONMRHAKD�$MSHSX�QDPTDRSR�SGD�ƥM@MBH@K�@CUHRNQ�SN�CN�RN�

6. will not knowingly do anything to put the Responsible Entity in breach of AML Legislation; and

7. will notify the Responsible Entity immediately if they become aware of anything that would put the Responsible Entity in breach of AML Legislation.

Adviser Stamp

Date: / /

!X�RHFMHMF�SGHR� OOKHB@SHNM�%NQL��XNT�@QD�BNMƥQLHMF�SG@S�XNT�@QD�@TSGNQHRDC�SN�@CUHRD�NM�L@M@FDC�HMUDRSLDMSR


8 INVESTMENT DETAILS ( To be completed by all Applicants)

Amount you wish to invest:

(Price Per Unit: A1 Class $100,000; B1 Class $125,000; C1 Class $150,000; D1 Class $25,000)

$

No. of UNITS

��&+(48(�'(7$,/6 – Made payable to “The Trust Company Limited ACF Axias Funds Limited”

Drawer Bank Branch Amount of cheque

$

$

$

$

$

��',675,%87,21�3$<0(17�(/(&7,21�( To be completed by all Applicants)

Where would you like your distributions credited?

If you do not nominate a preference, your distributions will be automatically reinvested into the Fund and additional Units issued to you.

Bank account details for distribution & withdrawal payments

�1DPH�RI�EDQN�RU�RWKHU�ǊQDQFLDO�LQVWLWXWLRQ

�� Branch name

�� BSB number

�� Account number

�� Account name

��

� Paid to an Australian Bank account nominated below

� A1 Class � B1 Class � C1 Class � D1 Class


9(5,),&$7,21�'(7$,/6

11 INDIVIDUALS, INDIVIDUAL TRUSTEES, JOINT INDIVIDUALS, JOINT INDIVIDUAL TRUSTEES OR SOLE TRADERS (Trustee Applicants also complete Section 13) ,I�\RX�KDYH�D�ǊQDQFLDO�DGYLVHU��\RX�FDQ�FRPSOHWH�WKLV�VHFWLRQ�RU�\RXU�DGYLVHU�FDQ�FRPSOHWH�Section 7 and send us a copy of the relevant IFSA/FPA Form. ,I�\RX�GR�QRW�KDYH�D�ǊQDQFLDO�DGYLVHU��LW�LV�PDQGDWRU\�WR�FRPSOHWH�WKLV�VHFWLRQ�DQG�SURYLGH�FHUWLǊHG�FRSLHV�RI�LGHQWLǊFDWLRQ�GRFXPHQWDWLRQ�IRU�HDFK�$SSOLFDQW

Option 1 – provide a FHUWLǊHG�FRS\�RI�RQH�SULPDU\�LGHQWLǊFDWLRQ�GRFXPHQW

� TRSQ@KH@M�2S@SD�3DQQHSNQX�CQHUDQŗR�KHBDMBD�BNMS@HMHMF�@�OGNSNFQ@OG�NE�SGD�ODQRNM

� TRSQ@KH@M�O@RRONQS��NMD�DWOHQDC�VHSGHM�SGD�OQDBDCHMF�SVN�XD@QR�HR�@BBDOS@AKD�

� "@QC�HRRTDC�AX�2S@SD�NQ�3DQQHSNQX�ENQ�SGD�OTQONRD�NE�OQNUHCHMF�@�ODQRNMŗR�@FD�BNMS@HMHMF�@�photograph of the person

� Foreign passport or similar travel document containing a photograph and the signature of SGD�ODQRNM��@MC�HE�@OOKHB@AKD��@M�$MFKHRG�SQ@MRK@SHNM�AX�@M�@BBQDCHSDC�SQ@MRK@SNQ�

Option 2 – provide one VHFRQGDU\�LGHQWLǊFDWLRQ�document from category A and one secondary LGHQWLǊFDWLRQ�GRFXPHQW�IURP�category B

�Category A TRSQ@KH@M�AHQSG�BDQSHƥB@SD

� TRSQ@KH@M�BHSHYDMRGHO�BDQSHƥB@SD

� Pension card issued by Centrelink

� Health card issue by Centrelink

� 5@KHC�,DCHB@QD�"@QC

�

Category B A document issued by the Commonwealth or a State or Territory within the preceding 12 LNMSGR�SG@S�QDBNQCR�SGD�OQNUHRHNM�NE�ƥM@MBH@K�ADMDƥSR

� A document issued by the ATO within the preceding 12 months that records a debt payable AX�SGD�HMCHUHCT@K�SN�SGD�"NLLNMVD@KSG��NQ�SGD�"NLLNMVD@KSG�SN�SGD�HMCHUHCT@K��VGHBG�BNMS@HMR�SGD�HMCHUHCT@KŗR�M@LD�@MC�QDRHCDMSH@K�@CCQDRR��AKNBJ�NTS�@MX�3%-�QDEDQDMBDR�

� A document issued by a local government body or utilities provider within the preceding three months which records the provision of services to that address or to that ODQRNM��LTRS�BNMS@HM�SGD�HMCHUHCT@KŗR�M@LD�@MC�QDRHCDMSH@K�@CCQDRR�

� If under the age of 18 years, a notice issued to the individual by a school principal within SGD�OQDBDCHMF�SGQDD�LNMSGR��SG@S�BNMS@HMR�SGD�HMCHUHCT@KŗR�M@LD�@MC�QDRHCDMSH@K�@CCQDRR��and records the period of time that the individual attended that school


��&25325$7(�$33/,&$176�$1'�&25325$7(�75867((�$33/,&$176�– that are Australian proprietary limited companies ,I�\RX�KDYH�D�ǊQDQFLDO�DGYLVHU��\RX�FDQ�FRPSOHWH�WKLV�VHFWLRQ�RU�\RXU�DGYLVHU�FDQ�FRPSOHWH�Section 7 and send us a copy of the relevant IFSA/FPA Form. ,I�\RX�GR�QRW�KDYH�D�ƩQDQFLDO�DGYLVHU��LW�LV�PDQGDWRU\�WR�FRPSOHWH�WKLV�VHFWLRQ�DQG�SURYLGH�FHUWLƩHG�FRSLHV�RI�LGHQWLƩFDWLRQ�GRFXPHQWDWLRQ�

DirectorsNumber of Directors

��Director 1 – full name



��

Shareholders -

Provide all details

Shareholder 1 – full name

��Street Address

��Suburb


��Shareholder 2 – full name

��Street Address

��Suburb


��

3URYLGH�D�FHUWLǊHG�FRS\�RI�RQH�LGHQWLǊFDWLRQ�GRFXPHQW � A search extract from the relevant ASIC database

��(E�SGD� 2("�C@S@A@RD�HR�MNS�QD@RNM@AKX�@U@HK@AKD��@�BDQSHƥB@SD�NE�QDFHRSQ@SHNM�HRRTDC�AX� 2("


��72�%(�&203/(7('�%<�$//�75867((�$33/,&$176� Ţ��,QGLYLGXDO�WUXVWHHV�DOVR�FRPSOHWH�Sections 1 and 11. Ţ��&RUSRUDWH�WUXVWHHV�DOVR�FRPSOHWH�Sections 2 and 12. This section must be completed by all trustee Applicants. )RU�UHJLVWHUHG�PDQDJHG�LQYHVWPHQW�VFKHPHV�RU�JRYHUQPHQW�VXSHUDQQXDWLRQ�IXQGV��SOHDVH�FRQWDFW�XV�IRU�YHULƩFDWLRQ�UHTXLUHPHQWV�RU�SURYLGH�WKH�UHOHYDQW��,)6$�)3$�)RUP�� ,I�\RX�KDYH�D�ǊQDQFLDO�DGYLVHU��\RX�FDQ�FRPSOHWH�WKLV�VHFWLRQ�RU�\RXU�DGYLVHU�FDQ�FRPSOHWH�Section 7 and send us a copy of the relevant IFSA/FPA Form. ,I�\RX�GR�QRW�KDYH�D�ƩQDQFLDO�DGYLVHU��LW�LV�PDQGDWRU\�WR�FRPSOHWH�WKLV�VHFWLRQ�DQG�SURYLGH�FHUWLƩHG�FRSLHV�RI�LGHQWLƩFDWLRQ�GRFXPHQWDWLRQ�

Option 1 – self managed super funds.

3URYLGH�D�FHUWLǊHG�FRS\�RI�RQH�LGHQWLǊFDWLRQ�GRFXPHQW�

�� RD@QBG�DWSQ@BS�EQNL�SGD� 2("�� 3.�NQ�QDKDU@MS�QDFTK@SNQŗR�VDARHSD

�� BDQSHƥDC�BNOX�NQ�DWSQ@BS�NE�SGD�SQTRS�CDDC

Option 2 – all other trusts.

3URYLGH�D�FHUWLǊHG�FRS\�RI�RQH�LGHQWLǊFDWLRQ�GRFXPHQW

�� MNSHBD�HRRTDC�AX�SGD� 3.�VHSGHM�SGD�K@RS��LNMSGR��AKNBJ�NTS�@MX�3%-�QDEDQDMBDR�

�� KDSSDQ�EQNL�@�RNKHBHSNQ�NQ�PT@KHƥDC�@BBNTMS@MS�SG@S�BNMƥQLR�SGD�M@LD�NE�SGD�SQTRS

�� BDQSHƥDC�BNOX�NQ�DWSQ@BS�NE�SGD�SQTRS�CDDC

14 AUTHORISATION

I / We acknowledge and declare that by signing this Application Form I/we have read and understood the attached PDS and attached instructions and declare that all details and statements made by me/us are complete and accurate. I / We agree to be bound by the constitution of the Future Estate Australian Residential Property Fund.

APPLICANT(S) SIGNATURE

Print Name Sign

Date Position held (for a Company, Trust or SMSF)

Print Name Sign


Print Name Sign



corporatedirectory

16.

Investment Manager:

Future Funds Management Pty Ltd

Level 7, AMP Centre

50 Bridge Street

Sydney NSW 2000

Phone: 1300 FUTURE (388 873)

Email: [email protected]

Website: www.futurefundsmanagement.com.au

Responsible Entity:

Axias Funds Ltd

Level 5

56 Pitt Street

Sydney NSW 2000

Phone: (02) 8823 3193

Email: LQIR#D[LDVJURXS�FRP�DX

Website: ZZZ�D[LDVJURXS�FRP�DX

&XVWRGLDQ� The Trust Company Limited

ABN 59 004 027 749

Level 15

20 Bond Street

Sydney NSW 2000

Fund Solicitors: Pointon Partners Pty Ltd

Level 14

565 Bourke St

,DKANTQMD��5("��

FUTURE ESTATE AUSTRALIANRESIDENTIAL PROPERTY FUND

(ARSN 134 516 724)

PDS_Driftwood_part3

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