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.