Real Estate Equity Fund

Disclosures

Disclosures for the Real Estate Equity Fund

ISG is committed to ensuring that it meets the continuous disclosure obligations of an unlisted disclosing entity under the Corporations Act and Regulatory guides as effectively as possible. ISG will use this webpage as a way to effectively and efficiently disclose new information, or changes/amendments relating to either the Responsible Entity or the Funds to all investors. It will follow the good practice guidance for website disclosure as set by ASIC. If the new information, or changes/amendments are deemed material in nature, a modified PDS or modified SPDS document will be created and communicated directly to investors via email.

If you have any questions on the disclosures and updates, please email ISG Funds Management at communications@isgfunds.com.au.

Click on the below links to view the related disclosure:

1. ISG Real Estate Equity Fund (ISG REEF)

Fund Benchmarks – Continuous Disclosures

Benchmark	Benchmark Description	Benchmark Met	Review Comments
Gearing	ISG maintains and complies with a written policy that governs the level of gearing at an individual credit facility level.	Yes	No change. Last reviewed Mar 2024
Interest Cover	ISG maintains and complies with a written policy that governs the level of interest cover at an individual credit facility level.	Yes	No change. Last reviewed Mar 2024
Interest Capitalisation	The benchmark is that the interest expense of Fund and the investment will not be capitalised. The Fund does not meet this as the interest expense will be capitalised. * This is common for these types of projects that do not generate any income during development to meet any interest obligations.	No*	No change. Last reviewed Mar 2024
Valuations	ISG maintains a written valuation policy which complies with this benchmark. In most circumstances, the Fund will hold financial assets in the investment entity. As the Fund will invest indirectly into property assets, each investment opportunity will be subject to ISG’s overall written valuation policy.	Yes	No change. Last reviewed Mar 2024
Related Party Transactions	ISG maintains and complies with a written policy on related party transactions, including the assessment and approval processes for such transactions and arrangements to manage conflicts of interest.	Yes	No change. Last reviewed Mar 2024
Distribution Practices	The Fund will only pay distributions from its cash from operations (excluding borrowings) available for distribution.	Yes	No change. Last reviewed Mar 2024

Fund Disclosure Principles – Continuous Disclosures

Fund Disclosure Principle	Disclosure Principle Description	Review Comment
Gearing ratio	The gearing ratio for each investment opportunity will be different. ISG will (where it is possible) disclose the proposed gearing ratio in the SPDS.	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.
Interest cover ratio	Where the investment opportunity involves significant development activities the interest cover ratio may not be able to be calculated because the investment opportunity will most likely have capitalised interest.	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.
Borrowing	The Fund does not intend to borrow. If the Fund does borrow, then any amounts owing to the financiers and other creditors of the Fund will rank before investor’s interests in the Fund.	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.
Portfolio diversification	ISG will disclose at no cost the current composition of the Fund’s direct property portfolio upon written request. However, investors are only exposed to the assets relevant to their investment opportunity.	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.
Related party transactions	Where ISG enters into related party transactions, a description of the related party arrangements relevant to the investment decision will be provided in the SPDS.	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.
Distribution practices	The investment opportunity will only pay distributions from cash from operations (excluding borrowings) available for distribution.	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.
Withdrawal arrangements	Once an investor’s funds are invested in an investment opportunity an investor will only be entitled to withdraw from the Fund when the underlying asset is sold and the proceeds of the sale are available for withdrawal	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.
Net tangible assets	ISG will disclose in the SPDS the value of the net tangible assets (NTA) of the investment opportunity on a per unit basis in pre-tax dollars.	No change. Last reviewed Mar 2024. Refer to PDS &/or Supplementary PDS for full details.

Product Disclosure Statement (PDS) – Updates

April 2019

A new ISG specific Retail Application Bank account has been created at our Registry. The new Retail Application Bank account details will be detailed on the ISG REEF application form and in the specific Supplementary PDS for the project you are investing in.

Sept 2020

A number of minor changes have been made to the ISG REEF PDS document. Version 1.2 will be used going forward. Summary of the changes include:

New stylised front and back cover
Update of ISG Board Member details
Update of ORS Application bank account details
Update of KYC process details
Update PDS overview section
Update Corporate Directory list

Nov 2020

The ISG REEF PDS has been updated to v2 with the following changes:

Section 10.3. Reference to an annual report for the Fund being available from the ISG website has been removed. Quarterly project updates are distributed to all ISG REEF investors.
Section 10.4. Reference to the PDS being available from the ISG website has been removed. PDS are available upon request from an Authorised Representative.
Any reference to ‘ISG Authorised Representative’ has been replaced with ‘Authorised Representative’.

Aug 2021

The ISG REEF PDS has been updated to v2.3 with the following changes:

Sections 1, 3, 6.1 and 7.5 (specifically under ‘Fund Structure Risk’) have been amended to highlight that there does remain a level of risk that selected investment opportunities may be indirectly impacted by other investment; opportunities ‘to the extent that that they impact the Fund’s overall income’;
Section 2 has been updated to change the minimum investment and additional investment amount;
Sections 2, 5.4 and 3 have been amended to refer the cash pool investors to section 6.3 of the PDS for further details of the withdrawal rights, returns and the investment period;
Section 3 has been amended to regarding the ‘linked developments’, which specifies that ‘Certain investment opportunities, or stages or investment opportunities, may be specifically linked with other investment opportunities under other Funds, meaning that the performance of an individual investment may be impacted by the performance and net proceeds of the linked investment. If this is the case with your selected investment opportunity, it will be detailed in the specific SPDS for the investment opportunity’;
Section 6.3 provides details and clarification on the cash pool units and details on how to become cash pool investors;
Section 8.4 has carved out cash pool units in respect of the liquidity risk; and
Section 8.3 has been updated to state ‘no fees and costs are currently charged in relation to cash pool class of units’ and to state ‘Expenses are not currently charged in relation to the cash pool class of units’.

Dec 2021

The ISG REEF PDS has been updated to version 2.4 with section 11.13 & 11.23 amended to remove details of the Custodian’s:

Role in the transaction; and
Fee for services provided in accordance with ISG’s constitution and the custodian agreement.

Jul 2023

An announcement was communicated to all investors on the 3rd of July 2023.

2. ISG Real Estate Equity Fund - Lindak Class Units

Supplementary Product Disclosure Statement (SPDS) – Updates

Sep 2021

This Class has reached its subscription limit and no further Units in this Class are being issued (as of December 2018)

3. ISG Real Estate Equity Fund - Lindak2 Class Units

Supplementary Product Disclosure Statement (SPDS) – Updates

Sep 2021

This Class has reached its subscription limit and no further Units in this Class are being issued (as of March 2019)

4. ISG Real Estate Equity Fund - East Estate Class Units

Supplementary Product Disclosure Statement (SPDS) – Updates

Feb 2019

Amendment to the original SPDS which is dated 2 Nov 2018. The distribution calculations have not changed, however the sections

explaining the calculation have been re-worded and simplified.

April 2019

Amendment to the SPDS which is dated 2 Nov 2018. There is an error in the description of the timing of the Investment Arrangement Fee on page 26. As per other ISG retail funds, the Investment Arrangement Fee is deducted as the application monies are received and accepted by the Investment Company and not once the Fund Raise has been complete.

April 2019

Amendment to the SPDS which is dated 2 Nov 2018. There is an error in the rate of the Investment Arrangement Fee (on page 9, page 26 and page 27). As per other ISG retail funds, the Investment Arrangement Fee is 5% + GST and not 4.8% + GST. All the Investor returns modelling and calculations were performed using the Investment Arrangement Fee of 5% + GST, so there is no concern in terms of deduction to investor returns from the typo.

Sep 2021

This Class has reached its subscription limit and no further Units in this Class are being issued (as of September 2019)

May 2023

A Material Change Notice was sent to investors of the East Estate Class on the 3rd May 2023.

5. ISG Real Estate Equity Fund – The Mills Commercial Precinct Units

Supplementary Product Disclosure Statement (SPDS) – Updates

Aug 2021

The SPDS has been updated to v6.1. The ISG REEF PDS replacement date of 13 August 2021 has been updated in the SPDS.

Sept 2021

This Class has reached its subscription limit and no further Units in this Class are being issued.

6. ISG Real Estate Equity Fund - The Mills Retirement Units

Supplementary Product Disclosure Statement (SPDS) – Updates

Dec 2021

The SPDS has been updated to version 1.1. The ISG REEF PDS replacement date of 17 December 2021 has been updated in the SPDS.

Jan 2022

The SPDS has been updated to version 1.2. The Number of Units and Total Offer Amount which may oversubscribed by investors has been increased from 2,000,000 to 12,500,000 (as defined in Section 1.2 of the SPDS dated 27 August 2021).

The over-subscription amount is amended by:

in the definition of Total Offer Amount, by deleting “$2,000,000″ and substituting it with “$12,500,000”; and
in the definition of the Number of Units, by deleting “2,000,000” and substituting it with “12,500,000”.

Feb 2022

This Class has reached its subscription limit and no further Units in this Class are being issued.

7. ISG Real Estate Equity Fund - The Mills Norfolk View Estate Class

Supplementary Product Disclosure Statement (SPDS) – Updates

No disclosures available.

8. ISG Real Estate Equity Fund - The Mills Parkview Estate Units

Supplementary Product Disclosure Statement (SPDS) – Updates

No disclosures available.

A.C.N. 114 733 569 Limited is the holder of the Australian Financial Services Licence no. 290328 (currently not taking on new investors). It is the Responsible Entity for the ISG Real Estate Equity Fund (ARSN 618 548 780) and the ISG Private Access Fund (ARSN 618 548 333). Although the Australian Securities and Investment Commission (ASIC), has provided a licenses to the above ISG entities, you should be aware that ASIC neither endorses, supports nor approves of any information, claims, products or services provided by ISG and/or its agents or representatives.

The Target Market Determinations (TMD) for all ISG investment products are freely available to the general public and can be requested by emailing communications@isgfunds.com.au

General Advice – Any advice provided by ISG is limited to general financial product advice which we provide, for example, in our offer documents, investment newsletters, investor reports and website material. This information generally relates to offer features, investment opportunities, managing risk and return, property market commentaries and/or general economic overviews. ISG does not provide personal financial product advice to retail clients. Before you make any investment decision, we recommend that you obtain advice tailored to address your individual objectives, financial situation and needs from a licensed professional financial adviser.

Privacy Disclaimer – A copy of ISG’s privacy policy is available by visiting the privacy policy or on request from our Investor Services team.

Future Profits Disclaimer – Past performance does not guarantee future performance. There can be no guarantee the assumptions and contingencies on which the forward looking statements, opinions and estimates are based will ultimately prove to be valid or accurate. The forward looking statements, opinions and estimates depend on various factors, many of which are outside the control of ISG.

S734 Restrictions on Advertising & Publicity – The information shared on the website is not a direct or indirect offer made by ISG and/or its agents or representatives.