Selection of Properties Our Process     PROPERTY SELECTION AND INVESTMENT PROCESS 1. Property Identified 2. Preliminary Assessment a. Compliance with AFS Licence requirements b. Tenancy issues c. Age and location of property d. Market segment e. Financial model (short form) f. If fails Preliminary Assessment, project abandoned   3. Initial Pre-Offer Considerations a. Lease profile b. Tenant profile (incl ASIC search & credit report) c. Purchase yield analysis d. Financial Modeling e. Preliminary risk analysis   4. Offer made subject to Due Diligence a. If final offer rejected, project abandoned   5. Due Diligence a. Valuation b. Technical Due Diligence of building – including all or some of the following:   General property condition   Building structure & fabric   Mechanical services   Electrical services   Fire protection services   Hydraulic services   Schedule of rectification and capital works cost estimates   Environmental report   Hazardous materials audit   Building regulation/Building Code of Australia audit c. Preliminary schedule of tax allowances d. Surveyor’s report e. Legal due diligence – including all or some of the following:   Proposed contract of purchase   Lease review   Title report   Statutory enquiries report   Service & maintenance agreement review   Warranties report   Actual, pending or threatened litigation report f. Research house preliminary assessment g. Economic outlook considerations h. Financier assessment, offer of finance & acceptance of terms i. Insurance review and assessment j. Managing agent considerations k. Financial model & projections l. Risk analysis 6. Issues arising from due diligence addressed 7. Director’s sign off to proceed to contract stage 8. Contract negotiated 9. Director’s sign off to proceed with purchase 10. Contract executed   ONGOING 1. Rent & outgoings collected by managing agent 2. Outgoings paid and operating expenses paid 3. Interest on debt funding paid 4. Distributions paid to Unit Holders 5. At syndicate expiry date, Unit Holder meeting held to determine whether to continue to hold or to sell 6. When property sold, debt repaid and surplus distributed to Unit Holders 7. Syndicate ends     Property Syndicate Property Investment