Australian Unity Investments (AUI) is releasing the third series of its successful Retirement Village Investment Note (RVIN), offering a choice of terms –three years at 8%pa, five years at 8.25%pa or seven years at 8.5%pa – paying a fixed rate of interest on a quarterly basis, with the principal repaid at maturity of the specified term.
The Notes will provide investors with regular, stable returns based on income from three NSW retirement villages – Constitution Hill, Karagi Court and Kiah Lodge – managed by Australian Unity. The capital raised will be used to continue to expand Australian Unity’s portfolio of retirement village properties.
Mr David Bryant, head of AUI, said that the Notes are an excellent option for investors seeking a regular stable income through a good interest rate, over the medium term.
“As we all know, investors are still seeking safety and security, and many have turned to cash and term deposits, but are now seeing the returns from these products rapidly falling following the interest rate cut this week. With more cuts predicted to follow, cash rates are likely to settle at less than three percent.
“The RVIN is an attractive alternative with a successful track record, paying a good return through regular quarterly instalments. “Because the underlyingassets are retirement villages, which are largely immune to market and economic cycles and in fact are continuing to experience a very high level of demand, the risk management in the investment should also make the Notes an attractive option.
“Studies suggest that there is an increasing acceptance in Australia of living in a retirement village and this, coupled with the aging population, means that there continues to be a significant increase in demand for new retirement villages. “A decade ago, just over three percent of Australians aged over 65 years lived in a retirement village. Today, the number is just over five percent, and it is predicted to increase to around eight percent by 2025,” Mr Bryant said.
AUI released the first series of notes in 2005, with the second series introduced last year.
The minimum investment amount is $5,000 with an issue price of $1 per Note. AUI intends to raise up to $30 million through the notes. There are no entry, exit or ongoing fees, and reinvestment of interest is not available.
The Notes will open for investment on Wednesday 8th April and close on 30th June 2009.
-oOo-
For further information please contact:
Penny Bold
Email: pbold@australianunity.com.au
*The Notes are unsecured notes for the purposes of section 283BH of the Corporations Act 2001(Cth). This information is not financial advice and is intended to provide a broad summary of the Australian Unity Retirement Village Investment Notes – Series 3. The Notes are not a bank deposit and have not been rated by a recognised credit rating agency, therefore an independent assessment has not been made about the risk of investors losing all or part of their principal; the interest rate of the Notes and the repayment of capital are not guaranteed. You should refer to the current Prospectus dated 1 April 2009 if you wish to know more about the product. A copy of the Prospectus can be obtained from the Issuer of the AUI Retirement Village Investment Notes – Australian Unity Finance Limited ABN 35 114 646 070, by calling 1800 649 033 or from our website at australianunityinvestments.com.au