Legals and Regulations

How is PropertyShares Structured?

The Trust is an unregistered managed investment scheme structured as a unit trust. When investors invest, they will receive Units in the Trust and become Unit holders. The Trust’s assets and liabilities are divided into different classes which correspond to particular Select Investments.

The Trust will, on behalf of each class of Unit holders, acquire a corresponding class of units in the Loan Trust, which is a trust operated by PropertyShares Holdings Pty Ltd (a related entity of the Manager). The Loan Trust will then loan the funds to borrowers nominated in Select Investments specific to the relevant class of Units.

The Trust is structured in this way to streamline and segregate the investment activities from the loan activities.

This structure ensures that losses and defaults in relation to one Select Investment will only affect investors who have chosen to invest in that asset and not investors in other Select Investments. The cash held in the Investor Account is also segregated from Select Investment Classes. Investors will be allocated Units in different classes, where each class represents an entitlement to income and capital generated from the Trust’s cash management bank account or a particular Select Investment.

An investor’s Units in one class does not entitle the investor to the income or capital of other classes of the Trust. An investor’s risk in and returns from a class will only be referable to the particular class the investor has invested in.

A summary of the Platform structure is contained in the diagram below.

About PropertyShares

  • PropertyShares Pty Ltd AFSL Authorised Rep No. 1236754 is the owner and manager of the Platform.

About the Trust

  • Cash and investments in the Trust are held in trust by a professional trustee firm who is independent of the Manager: Melbourne Securities Corporation Ltd AFSL 428289.
  • The PropertyShares Investment Trust issues classes of Units to investors specific to loan investments facilitated by the Loan Trust.

About the Loan Trust

  • The Loan Trust facilitates loans on behalf of investors.
  • Loans from the Loan Trust are ring-fenced and segregated via classes of loan units and investors select which loans they want to participate in.
  • Class specific loan units in the Loan Trust are beneficially owned by specifically nominated investors in the PropertyShares Investment Trust.
  • Loans are made on behalf of investors by the Loan Trust Trustee: PropertyShares Holdings Pty Ltd

About the Loan Trust loans

  • Each loan is subject to PropertyShares loan criteria and is managed by PropertyShares.
  • Investors select the specific loans they wish to invest in by reviewing information related to those loans which is provided on the Platform website.