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Valad Opportunity Fund No. 12

A value add opportunity for your property portfolio

Valad Commercial Management Limited (VCML) is pleased to introduce the Valad Opportunity Fund No.12 (VOF 12 or the Fund), a new unlisted property investment and the latest release in the successful Valad Opportunity Fund (VOF) series.

         Key Features
    • Target IRR1 of 17% or greater, pre tax and after all fees and expenses.
    • An opportunity not frequently available to retail investors the Fund offers retail investors an opportunity to participate in property development and repositioning style returns generally only available to the wholesale investor market.
    • Short time horizon expected term of the Fund is approximately 4 years, with an exit mechanism available after five years should any projects remain incomplete.
    • High asset backing NTA on allotment of $0.936
    • Diversified asset portfolio geographically spread across the Eastern seaboard, and with a high strategic weighting to the strongly growing Queensland economy and property markets. The Funds project interests will provide investors with exposure to the retail, residential and industrial property markets.
    • No direct sub prime or listed property trust exposures the Fund will have no direct exposure to the sub prime market or volatility of the listed market.
    • Managed by entities of Valad Property Group, an ASX listed Top 150 company with a market capitalisation of over $1.6 billion.3
    • Valads strong performance history Since inception Valad has completed 41 projects to the value of $1.4 billion, including five projects completed within the opportunity fund series. All of these projects have generated an average pre-tax IRR of 26.3% and a higher pre-tax IRR of 28.7% for the five VOF series projects. 4
    • Alignment of interests Valad and its directors will retain a significant holding in the Fund of up to 19.9% (minimum of 10%) and also co-invest in one of the Funds projects, aligning their interests with those of investors.
    • Offer underwritten by National Australia Bank Limited
    • Minimum investment under the Offer is $10,000 (10,000 Units at the Offer price of $1.00 per Unit)

    An attractive investment opportunity

    Through an investment in VOF12 investors will have the opportunity to participate in the attractive returns available from property development and repositioning activities. Where successful, these returns are generally higher than investors would expect to receive from investing in more traditional property trusts holding passive assets with limited development upside.

    Potential for strong returns with a diversified property exposure

    VOF12 will provide investors with the opportunity to invest in five value adding property projects geographically spread across the Eastern Seaboard, with a high strategic weighting to the strongly growing Queensland property market. The Fund will provide exposure to a broad spectrum of property asset classes, including the retail, industrial and residential property sectors and will aim to deliver a target internal rate of return of at least 17%, pre-tax and post fees and expenses.5

    The Valad Property Group - expert management and a strong track record

    Investors in the Fund will benefit from the expert management and experience of the Valad Property Group, a specialist property investment and funds management group with a strong track record of generating returns for investors. Valad has delivered an average pre-tax IRR on all 41 projects completed since Valads inception of 26.3%.6

    1 IRR or Internal Rate of Return The discount rate that results in a net present value of zero for a series of future cash flows. The IRR is generated by an investment over its life or a given timescale, taking into account the purchase price and sale proceeds and all cash flows associated with the holding. The target return is based on certain assumptions and is subject to investment risks, further details of which are outlined in the PDS.
    2 This is not a forecast and should not be relied upon as such.
    3 Market capitalisation as at 31 January 2008.
    4Past performance is not a reliable indicator of future performance and should not be relied upon as such.
    5This is not a forecast and should not be relied upon as such. The target return is based on certain assumptions and is subject to investment risks, further details of which are outlined in the PDS.
    6 Past performance is not a reliable indicator of future performance and should not be relied upon as such.

    Open to new and existing investors

    Investment in the Valad Opportunity Fund No.12 is open to new and existing investors, individuals, companies and trusts. Prospective investors should read the Product Disclosure Statement before applying for Units in the Fund.

    Details of the offer
    Application price (per Unit) $1.00
    Amount to be raised $29.5 million
    Minimum Application amount 10,000 Units (application funds of $10,000)
    Target IRR 17% or greater (pre-tax and before fees)*
    Pro-forma NTA at Allotment $0.936

    Key Dates
    Offer opens 18 February 2008
    Offer closes 9 May 2008
    Expected allotment of Units 22 May 2008
    The Offer Period has been extended two weeks and will now close on Friday 9 May 2008.
    VCML reserves the right, with the consent of the Underwriter, to vary these dates without notice, including closing the offer early or extending the offer.

    Further information

    Further information about the Offer can be obtained by downloading the electronic PDS. Alternatively, please contact your investment advisor or contact NAB on 1800 652 669.
    Additional Disclosure
    With respect to the redemption process set out in Section 1.2 of the PDS please note the following changes:
    1) The redemption offer was made for 53.9% of the units held by VCML as trustee of the Home Central Trust (rather than 86.6% as originally intended) immediately prior to the allotment of units to investors;
    2) The responsible entity will satisfy the redemption of units through the use of subscription proceeds of approximately $9.0 million, leaving a $4.0 million loan to HCT. This loan will be repaid from the proceeds of the disposal of the Toowoomba asset;
    3) Valad will not be subscribing for any additional units under the Offer; and
    4) Following allotment, Valad's cornerstone investment in the fund will consist of 11.2 million units or 34.1%.
    Recent stock exchange movements have resulted in a triggering of the market out provision in the VOF12 Underwriting Agreement (as more fully described in the PDS) giving NAB the option to withdraw. At this stage (until further notice from NAB) the Underwriting Agreement remains on foot with the offer proceeding on the basis set out in the PDS. If NAB withdraws and a shortfall arises, the offer would be withdrawn and any application money returned with interest. Investors will be advised of any further material developments on the underwriting arrangements as they become available.

    DOWNLOAD the ELECTRONIC PDS

    Click here to download the electronic PDS

    Click here to download the marketing brochure

    You must read the PDS in connection with the National Privacy Notification and the Financial Services Guide.

    Click here to download the National Privacy Notification

    Click here to download the Financial Services Guide

    Risk factors

    An investment in the Fund will be subject to various risks. Prospective investors are encouraged to read the Product Disclosure Statement carefully and in its entirety before making an investment in the Fund. It is recommended that investors consult their financial advisor before making an investment decision.


    Disclaimer

    The units in the Valad Opportunity Fund No.12 ARSN 129 218 855 ("the Fund") are not deposits with, or other liabilities of, National Australia Bank Limited ABN 12 004 044 937 (nab) or other companies of the nab group. Units in the Fund are issued by Valad Commercial Management Limited ABN 76 101 802 046 (VCML), as the responsible entity of the Fund (Responsible Entity). nab does not guarantee the performance of the Fund or stand behind, in any way, the capital value or performance of the units or the investments made by the Fund. Investment in the units is subject to investment risk, including possible delays in payment and loss of income and principal invested.

    Offers of units in the Fund are made in the PDS and units in the Fund can only be acquired on the application form included in, or accompanying, the PDS dated on or about 18 February 2008. Further copies of the PDS can be obtained by contacting nab on 1800 652 669 or by visiting www.nabcapital.com/vof12

    The offer of units in the Fund is only open to Australian residents. By obtaining a copy of the PDS, you acknowledge and confirm that you are an Australian resident.

    The information on this website has been made available to the recipient for information purposes only and is not intended to be, and does not constitute a product disclosure statement, prospectus, short form prospectus or profile statement as those terms are defined in the Corporations Act. It does not constitute an offer for the issue, sale or purchase of any securities, or any recommendation in relation to investing in the assets. Full details are set out in the PDS available as set out above.

    While every care has been taken in the preparation of the information on this website, nab makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Full details are set out in the PDS for the product. To the maximum extent permitted by law, nab expressly disclaims all or any liability which may arise out of the provision to, or use by, any person of the information contained on this website. The information on this website has been prepared for the purpose of providing information only without taking account of any particular investor's objectives, financial situation or needs. An investor should, before making any decision whether to buy or hold units in the Fund, consider the full details set out in the PDS for the product (available as set out above), and seek professional advice, having regard to the investor's objectives, financial situation and needs.

    nab may provide debt, treasury, equity arranging and other services to the Fund or its controlled entities. These services are provided in various capacities as a third party as described in the PDS. nab may act if necessary to protect its interests ahead of those of investors and other parties. In acting in its various capacities, nab will only have the duties and responsibilities expressly agreed by it in the relevant capacity and will not, by virtue of acting in any other capacity, be deemed to hold any differing standard of care.

    Forward Looking Statements

    Without limiting the foregoing, any forecast, budget, target or projection is provided for information purposes only and comprises management estimates of future prospects. No warranty or representation is given as to the accuracy or reasonableness of any such forecast or projection or that any such forecast or projection will actually be met. As the achievement of any prediction as to results of subsequent trading is dependent upon future events, the outcome of which cannot be assured, the actual results achieved may vary materially from the forecast or projections. In all the circumstances, no warranty, express or implied, is given that these future matters will occur or that the future performance will be met. The Responsible Entity and nab have provided this information on the basis that each recipient will carry out and rely solely upon its own investigation and analysis.

    Code of Banking Practice

    nab has adopted the revised Code of Banking Practice 2003. For details of the Code contact nab on 13 22 65 and select the option to speak to a Customer Service Representative, or visit us at www.nab.com.au . For information about nab's dispute resolution processes click on Dispute Resolution.

    Privacy and FSG

    You must read the Product Disclosure Statement in connection with the nab Privacy Notification and Financial Services Guide.


    Click here to download the National Privacy Notification

    Click here to download the Financial Services Guide

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