Our recent seminar with AMP Chief Economist, Shane Oliver suggested we are nearing the peak of RBA rate rises. However, the impact of rate rises remains to be felt in many sectors of the economy which remain overheated. A tight labour market and supply issues continue to challenge many sectors.
Despite these challenges within the economy, Capital Prudential has continued to grow and meet profitability targets through a carefully executed de-risking strategy.
Our strategy involves an extensive due diligence process for all developments presented to our investment committee. This process results in a majority of proposals being rejected due to risks in relation to approvals, pre-lease commitments or ability to on-sell the development during or at completion. Clear evidence of this strategy is highlighted by the geographic spread of Capital Prudential projects which have never touched the overheated Sydney and Melbourne markets. Despite many proposals in these markets, none have been deemed to deliver the expected returns of Capital Prudential without presenting significant risk.
Our diversification strategy continues with a solid mix of projects across WA, SA, NT, QLD and northern NSW spanning premium residential, residential in-fill, commercial and industrial.
Our Secured Income Notes continue to support these developments backed by bank funding. If you are a first time wholesale investor in this type of product, we would encourage you to get in touch and we can arrange a personal meeting to provide further detail and answer all of your questions.
Currently, we are offering our standard interest rates of 10% / 9% / 8%^ for 3 / 2 / 1 year terms, respectively, with interest paid quarterly.
To apply, please contact us on 1800 966 021 or email: investment@capitalprudential.com.au.
Sam Moore
Managing Director
M: 0400 285 405
A copy of SQM’s research report is available to financial planners and wholesale clients only. Please contact us using the link below.
The rating contained in this document is issued by SQM Research Pty Ltd ABN 93 122 592 036 AFSL 421913. SQM Research is an investment research firm that undertakes research on investment products exclusively for its wholesale clients, utilising a proprietary review and star rating system. The SQM Research star rating system is of a general nature and does not take into account the particular circumstances or needs of any specific person.
The rating may be subject to change at any time. Only licensed financial advisers may use the SQM Research star rating system in determining whether an investment is appropriate to a person’s particular circumstances or needs. You should read the product disclosure statement and consult a licensed financial adviser before making an investment decision in relation to this investment product. SQM Research receives a fee from the Fund Manager for the research and rating of the managed investment scheme.
TEAM UPDATES
Tim Foster
– Executive Director & CFO
Tim is a Chartered Accountant with deep CFO property experience gained over the last 22 years as CFO of Stockland, an ASX listed Top 30 diversified property group, and most recently, as the CFO of Qatari Diar, the US$35B global property development arm of the Qatar Sovereign Wealth Fund.
Racquel Joyner
– Manager, Governance & Risk
Racquel is a director of Sea Analytics, a specialist consulting firm and for the last ten years she has been supporting boutique investment firms with their complex risk and compliance requirements.
DISCLAIMER: The Secured Income Notes detailed in this update are issued by Capital Prudential Diversified Development Fund Pty Ltd (ACN636 283 219) (CPDDF) as trustee of the Capital Prudential Diversified Development Fund (the Fund). CPDDF is a Corporate Authorised Representative of Capital Prudential Funds Management Pty Ltd (ACN 636 279 082, AFSL 524725) (CPFM). Capital Prudential Pty Ltd (ACN 634 875 273) (Capital Prudential) is the unitholder and Trust Manager of the Fund and is a Corporate Authorised Representative of CPFM. Capital Prudential is authorised by CPFM to provide advisory and dealing services in connection with the Fund to wholesale clients only.
The information has been only prepared for wholesale clients pursuant to section 761G of the Corporations Act (Cth) 2001 to provide general information only and Capital Prudential did not take into account the investment objectives, financial situation or particular needs of any person when preparing this information. It is not intended to take the place of professional advice and you should, before acting on this information, consider the appropriateness of this information having regard to your personal objectives, financial situation or needs.
Neither Capital Prudential, CPDDF or CPFM or any of their related parties, their employees or directors, provide any warranty of accuracy, completeness or reliability in relation to such information contained within this update or accept any liability to any person who relies on it. Neither Capital Prudential, CPDDF or CPFM guarantees repayment of capital or any particular rate of return from the investment. All opinions and estimates included in this update constitute judgements of Capital Prudential as at the date of the update and are subject to change without notice. Economic and outlook forecasts are not guaranteed to occur and past performance should not be taken as an indicator of future performance.
This update contains an incomplete description of features of the Fund and Secured Income Notes and should be considered in conjunction with the Information Memorandum and other transaction documents (which are available upon request). Investment in the Secured Income Notes is subject to risks including delays in repayment and loss of income and capital invested and is suitable only for potential investors who do not require liquidity for their investments.
^ The interest rate offered to you at this time may differ from other interest rates offered from time to time. For example, it may differ from the interest rate for any Secured Income Notes previously or subsequently offered and issued. The interest rate for each Secured Income Note will be the rate notified in writing when offered to you as an investor prior to your investment.
