Barkly Investment Criteria

The Manager’s investment philosophy is governed by strict Investment Criteria specific to the Barkly Series of investments. At a minimum, although not limited to the following, investments in any particular project or mix of projects must satisfy certain  Investment Criteria, namely; 

(a) Minimum project proft margin of 20%;

(b) Minimum IRR on invested capital of 20%;

(c) The Fund to be an on title owner of the development land where the Fund contributes equity to the Project or be a documented lender if the Fund loans money to the Project;

(d) Maximum secured debt in any project (ranking in priority to the Fund's investment) not to exceed 90% of the project’s total development cost;

(e) Project debt finance will be non-recourse to Investors of the investments total development cost;

(f) Construction projects must have a fixed price and term building contract with an experienced and reputable builder; and

(g) If a development asset is retained for passive ownership then it may only be so if upon completion:

        (i) ICR is greater than 1.3 times; and

        (ii) LVR is greater than 65.0%

Should an investment opportunity exhibit a unique risk and return profile, the above criteria may be varied with the unanimous approval from independent Investment Committee approves with subsequent ratification arising from a special resolution of Unit Holders. 

 

 

 

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