KEY RISKS
Government legislation The risk the Government may alter legislation or policy impacting on the development, sale or ownership of the Property or the regulation of managed investment schemes. This could include (but may not necessarily be limited to) taxation law, negative gearing, GST, stamp duty, planning law and foreign investment laws. Adverse events All property assets are subject to risks such as natural disaster, terrorism, war and pollution. The Trustee will endeavour to maintain, or cause to be maintained, adequate insurance for the Trust's assets, where insurance is available on normal commercial terms. Where the cover under an insurance policy is inadequate, or an insurance policy does not respond (for example, an exclusion applies) to an adverse event impacting upon an asset of the Trust, the returns to Investors from the Trust may be diminished. Liquidity An investment in the Trust will be illiquid because, unlike listed investments, there is no automatic right of withdrawal and there is no established secondary market in which to sell your investment in the Trust. The Trust's ability to return capital will be limited, and capital distributions will generally only be made following realisation of an investment. As the Trust’s objective will be to hold investments for the medium to long term, an investment is unlikely to be realised until the end of the term of the Trust. If circumstances permit, the Manager may endeavour to facilitate limited withdrawals from the Trust. However, this may not occur and prospective Investors should not expect to be able to withdraw from the Trust prior to its termination. The Trust's assets will primarily be illiquid in nature, so it is possible the Manager will be unable to facilitate any level of withdrawal by Investors from the Trust.
Economic conditions The risk of a change in economic conditions such as (but not necessarily limited to) interest rates, government fiscal and monetary policy, inflation or employment levels. A change in economic conditions may, depending on the severity, influence investor demand for properties and/or tenant demand for accommodation. Pandemic/COVID-19 risk The impact of COVID-19 or any future pandemic is not able to be forecasted. There is a risk that changes to economic conditions and government restrictions (which may include forced business closures and a code of conduct for landlords and tenants to participate in rent negotiations) caused by a pandemic may adversely affect the Trust, including the value of any property investments and the Trust’s earnings and income distributions. Investments in the Trust are suitable for experienced property investors with an awareness of the risk factors set out above. You should discuss the risks of an investment in the Trust and the suitability of such an investment to your needs with your financial adviser.
QUANTA TENNYSON STREET OFFICE TRUST | Information Memorandum
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