With each investment that we are involved, the manager will outline all features in a proposal document, called a Product Disclosure Statement (PDS). We like to call this document an investment proposal because that is exactly what it is. The PDS will outline the expected features and benefits of investing in the syndicate over the duration of the investment and explain the calculations that the manager has made to predict the co-investment’s projected income and capital security.

The PDS will likely address issues like the expected population growth and demographic changes of the property’s location, nearby relevant infrastructure upgrades, and extrapolated growth of the tenant’s area of business. It should also outline possible risks to the investment and the precautions the syndicate manager will take to mitigate these risks in our dynamic world. Budgetable expenses such as the depreciation of plant and equipment and associated replacement costs, and tenancy default and re-leasing strategies should also be mentioned here. In short, a PDS acts as a kind of  agreement or charter, so everyone is clear about the details of the proposed investment. On saying this, there is no guarantee that it will be successful in achieving its investment targets and objectives.