The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and its associated rules (AML/ CTF Law) is aimed at addressing money laundering in Australia and the threat to national security caused by terrorism. The AML/CTF Law requires reporting entities (suchas Spyre Capital) to collect certain information from customers and verify that information to reasonably satisfy themselves the person they are dealing with is who they claim to be.
Spyre Capital Ltd intends to comply with the AML/CTF laws in respect of investments the same way it would in respect of interests issued in a managed investment scheme operated by it. Before the Company accepts investment funds, Spyre Capital Ltd will collect certain customer identification information (and verify that information). You will be required to provide certain identification information.
As part of the “know your client” requirements we are also required to understand the source of funds invested. Please see below an explanation of each of these requirements;
WHAT IS A BENEFICIAL OWNER?
To comply with AML/CTF Law we require you to disclose beneficial owners. ‘Beneficial owner’ means an individual who ultimately owns or controls, directly or indirectly, the Investor. ‘Control’ includes control as a result of, or by means of, a trust, agreements, arrangements, understandings and practices, whether or not having legal or equitable force and whether or not based on legal or equitable rights, and includes exercising and control through the capacity to determine decisions about financial and operating policies. ‘Owns’ means ownership, either directly or indirectly, of 25% or more of the Investor.
WHAT IS A POLITICALLY EXPOSED PERSON (PEP)?
To comply with AML/CTF Law, we require you to disclose whether you are or have an association with a politically exposed person (PEP). A PEP is an individual who holds a prominent public position or function in a Government body or an international organisation in Australia or overseas, such as a Head of State, or Head of a Country or Government, or a Government Minister, or equivalent senior politician. A PEP can also be an immediate family member of a person referred to above, including spouse, de facto partner, child and a child’s spouse or a parent. A close associate of a PEP, i.e. any individual who is known to have joint beneficial ownership of a legal arrangement or entity is also considered to be a PEP. Where you identify as or have an association with a PEP, we may request additional information from you.
WHY DO YOU NEED TO KNOW MY SOURCE OF FUNDS?
As part of our obligations to ‘know our customer’ and to assess money laundering and terrorism financing risk under our AML/ CTF program, the AML/CTF Law now requires us to ask about the Investor’s (and of their beneficial owners’) income and assets available for investment and the sources of funds, including their origin. If you have any questions about the new customer identification procedures, please contact our Investor Relations team.
The Foreign Account Tax Compliance Act (FATCA) is a law of the United States of America (US) that impacts investors worldwide. FATCA attempts to minimise US income tax avoidance by US persons investing in assets outside the US, including through investments in foreign financial institutions. FATCA requires reporting of US persons’ direct and indirect ownership of non-US accounts and non-US entities to the US Internal Revenue Service (IRS). The Australian Government has entered into an inter-governmental agreement (IGA) with the US Government for reciprocal exchange of taxpayer information. Under the IGA and enacted legislation, financial institutions operating in Australia report information to the ATO rather than the US IRS. The ATO may then pass the information on to the US IRS.
Investment in a Spyre project does not meet the definition of a ‘foreign financial institution’ ; however, if it is deemed to meet the definition of a ‘foreign financial institution’, Spyre Capital will comply with its FATCA obligations. These laws apply to all financial institutions offering bank or deposit accounts, investment funds, custodial accounts and certain insurance accounts in Australia. A FATCA self-certification form must be completed by all investors and requires self-certification of an investor’s taxation status under US law. The self-certification is used by Spyre Capital to determine if reporting is required in relation to your investment in the Investment Fund.
The Common Reporting Standard (CRS) is the single global standard for the collection, reporting and exchange of financial account information of non-residents. Under CRS, Spyre Capital may need to collect and report financial account information of non-residents to the ATO. The ATO may exchange this information with the participating foreign tax authorities of those non-residents.
Privacy Statement
We value the privacy of every individual’s personal information. Protecting your privacy and your personal information is an important aspect of the way we create, organise and implement our activities online.
The Spyre Capital Privacy Statement explains how your personal information (being information capable of identifying you as an individual) will be treated as you access and interact with this website. View our Privacy Statement Here.
Spyre Capital Pty Ltd is committed to striving for excellence in relation to its products and services and wants to ensure that it responds to concerns as quickly and efficiently as possible. Despite our best endeavours, we realise that complaints will occur from time to time and, to this end, we have in place comprehensive complaints resolution processes to ensure they are resolved with minimum inconvenience.
If you have a complaint, please contact us on 07 3252 4932. If you are not satisfied with the response you may write to us as follows:
Post: PO Box 209, Fortitude Valley Qld 4006
Email: info@spyregroup.com.au
Please provide the detail and reason for your complaint and we will endeavour to acknowledge your complaint within one business day or as soon as practicable and we will attempt to resolve the matter and respond within five business days of receipt. A final response may take up to 45 calendar days, depending on the particular circumstances of the complaint.
Should you not be satisfied with the outcome of the internal compliant resolution outcome you should contact the Australia Financial Complaints Authority (AFCA) by submitting a complaint online at afca. org.au, by email info@afca.org.au or by calling 1800 931 678.
Why does a successful company like Spyre need more equity?
Spyre’s projects require significant upfront investment to acquire sites, develop designs, obtain approvals, secure pre-sales and to otherwise mitigate development risk to a point where debt funding is available for the completion of the project. Spyre’s success in continuing to procure and deliver high-end development projects in premium locations is due to the careful management of funding resources to ensure that when opportunities present themselves, Spyre has available capital to take advantage. When development risks have been mitigated to a point where alternative funding is available Spyre seeks to recycle its higher risk capital to other less advanced projects. As part of its management strategy Spyre invites investors to share in the future profits of a project to enable Spyre’s initial capital to be recycled.
How Can Spyre Sustain The Interest Rates Offered To Investors?
The interest rate offered for each investment is a product of a number of factors. These include the profitability of the project, presales achieved, timing of the investment amongst others. Prior to making an offer of a particular rate, Spyre models each project and tests the model with various scenarios to ensure there is sufficient profit in a project to offer a particular interest rate.
What is the priority of payments at the end of the project?
Most of the project costs in a real estate development project are funded by the project financiers. These financiers are secured by a first ranking mortgage over the project land. The level of security held by a financier or their loan to value ration varies from project to project. The specifics of each project will be outlined in the project Information Brochure. Generally, priority of payment will follow the capital contribution. The repayment of capital and returns does vary for each project. A typical flow of capital and return is as follows:
1. Secured Project Financiers
2. Preferential Loan Lenders
3. Spyre Shareholders
How Is My Investment Secured?
The vehicle used for each investment may vary depending on the project. A typical model offered by Spyre Capital is through a Preferential Loan Agreement which ranks investor principal and interest ahead of ordinary shareholders. This form of investment is sometimes called Preferred Equity.
The development project reaches completion by stepping through a number of milestones throughout the development cycle. At each one of these milestones the developer eliminates certain risks, thereby reducing the overall investors risk. As each milestone is achieved the developer is creating greater value to the “Development Site”. The greater the value created the higher the security and equity growth along the way for stakeholders.
Depending on when the investors commence their investment within the cycle determines the overall inherent risks which could be faced by that investor. Earlier in the development cycle, the investor will face all development risks such as securing a satisfactory Development Approval. Whereas later in the development cycle the company achieves a number of early milestones, certain risks are eliminated and the investors risks are reduced to such risks as achieving the required number of off the plan presales to satisfy the construction lenders requirements.
How Certain is it that a project will be seen through to completion?
You are investing in the expertise of Spyre and its associated success over the past 14 years to take each development site through to completion. Your investment is secured against the development entity which is a loan against the land asset.
At each phase of the development cycle our expertise is investing equity into the land to gain growth through its highest and best use. In all cases this growth is seen via obtaining a Development Approval on the land for its highest and best use type.
Spyre obtain terms against their selected development sites which enable minimal deposits and maximum settlement terms to enable us to progress the development cycle as far as we can, including marketing, presales and construction loans on the land prior to having to settle it. This minimises interest holding costs and allows Spyre to move straight into construction in many cases prior to the term being exhausted on the land contract.
What is the investment process from initial discussion to loan repayment?
Every project and investment are different. A typical process is as follows:
1. Initial discussion with a potential investor is held by a Director of Spyre. The purpose of this discussion is for the investor to meet the people that will deliver the project and also for Spyre Directors to understand the level of investment experience of the investor to ensure that the potential investor is made aware of the risks associated with the investment.
2. Spyre will then provide project specific details and a link to a number of documents relevant to the project to enable the investor to assess the project and investment.
3. If the investor is keen to proceed with the investment in the project, Spyre Group will provide the proposed terms of the investment and provide a sample loan agreement.
4. If satisfied, the investor should sign the loan agreement and deposit the invested funds directly into the project bank account.
5. Throughout the development, all investors will receive a monthly project update including photos of construction.
6. Once the construction is completed, settlement of pre-sale contracts will occur. Financiers will be repaid from sales proceeds in the priority order noted above as each settlement occurs.
What does spyre look for as market indicators?
Each investment will be different depending on the project or project stage that the investment is made. A typical duration is 3 years.
Is there a minimum investment?
Each project has a varying value, therefore the minimum investment may also vary. The minimum investment will also depend on the type of investor and their circumstance. Investments are limited to sophisticated and professional investors including Self-Managed Super Funds.
Typically, a minimum of $100,000 is required, however directors will endeavour to use their discretion as required.
If my circumstances change and i have money invested with spyre, can i ask for early repayment?
The investment funds raised are used in property development projects, which has a 2 to 3 year project life. The returns of the investment are generated by the sale of the apartments at the end of the project cycle. The investment is an illiquid investment until completion pending on the amount of stock sold.
Therefore, in most circumstances investment funds cannot be repaid until the end of the project, however we also note that sometimes due to life changes an investor may require early or emergency repayment. There is no guarantee, however Spyre are happy to take the investment back out to the market in the hope to replace investment funds mid-way if achievable. The interest rate offered for investment is reflective of the illiquid nature of the investment.