The auspv renewable energy strategy, owns fully operational sites located throughout Australia.
All sites are operational and income producing ranging in size from 3MW to 15MW.
The combined 7 year PPAs (Power Purchase Agreements) and LGCs (Large Renewable Generation Certificates) revenues less expenses are expected to generate a return of between 8.65% and 4.4% p.a.
These investments will receive income in the form of monthly distributions in a range of between 4% to 8% pa.
These investments should be considered an income investment.
Industry issues include;
• Cost competitiveness – renewables are the cheapest energy to produce
• Increasing demand – population growth and CO2 targets
• Supply constraints – the retirement of coal fired plants
There are a number of embedded options existing for these sites namely;
• Plug and play battery energy storage
• Inter-regional energy export
• H2 (Hydrogen) production through the use of electrolysers
Battery storage offers an opportunity to add several revenue streams such as network support services, the ability to sell Cap Price contracts to energy users and retailers and energy arbitrage achieved by charging battery storage during low price periods and discharging during high price periods. These opportunities are expected to grow as coal-fired plants cease operation.
Hydrogen production costs are falling each year and this offers sites the opportunity to value add in coming years.
The DomaCom Fund ARSN 167 020 626 is an investment vehicle managed by DomaCom and is an ASIC registered managed investment scheme which issues units in the sub-fund that holds the property. The issuer of this product is Melbourne Securities Corporation Limited AFSL No. 428289. DomaCom Limited holds an Australian Financial Service License (No. 444365) and as the Manager, is responsible for all due diligence.
These auspv sites are presented for investment by DomaCom Limited (ACN 604 384 885). Auspv contract out the operators and DomaCom manages a fractional investment platform enabling investors to participate with other investors in the managed sub-fund.
If you would like to invest in auspv Renewable Energy Strategy, you can join this crowdfunding campaign by completing the application and lodging your investment funds through this General Advice page. Please ensure that you first read the DomaCom Fund’s Product Disclosure Statement (PDS). For a copy of the current PDS, please click here or call your financial adviser.
When you have lodged your bid and the campaign is filled, you will also receive a Supplementary Product Disclosure Statement (SPDS) outlining the specific offer to invest in the auspv Renewable Energy Strategy which will contain all the information required for you to make a decision. You are not bound to proceed with your bid amount for this auspv Renewable Energy Strategy crowdfunding campaign until you accept the offer contained in the SPDS (which will include the specific details for the property you have selected).
If you are new to DomaCom, click on the Apply button to begin your application. If you are an existing DomaCom Fund investor, you can login to access your account and all the other public crowdfunding campaigns by clicking the Investor Login button.
Risks for Property Sub-Funds
Refer to the section 7 of the PDS titled Risks of investing in the DomaCom Fund and the sub section 10.3 of the PDS Risks of Investing in an Equity Sub-Fund such as this sub-fund.
Specific risks of this investment:
- Sub-Fund not established– If there is insufficient Investor interest in the Equity Investment, the Equity Sub-Fund will not be created.
- No guarantee of returns– Returns are not guaranteed and Investors may lose money some or all of their income return and capital.
- Liquidity risk– An Investor cannot withdraw from the Sub-Fund until the Sub-Fund is terminated, and the Underlying Property is sold. DomaCom does intend to offer a facility through which Investors can seek to sell their Units to another party, however there is no guarantee of this.
- Damage or loss to Property – There are a range of events that can damage the Property including acts of God (fire, flood, earth quake and other natural disasters) through to accidents, negligence, and failures of maintenance.
- Underlying Loan Servicing Risk– There may be insufficient income generated from the Security Property to meet the borrowing costs. The costs associated with Security Property may exceed its income. The Borrower will seek to ensure that there is sufficient income to meet expenses including holding a cash reserve equivalent to 4 months’ rent at the time of establishing the Underlying Loan and also ensuring that that the Interest covered ratio is sufficient to cover the interest expense.
- Asset Risk – The property to be acquired cannot exceed an independent property valuation of more than a loan to valuation ratio of 60%. The value of the Security Property would need to fall by 40% to put at risk the repayment of the Loan Sub-fund.
- Economic risk– There is a risk that the general economic conditions in Australia may change in relation to renewable energy, interest rates, employment and economic growth that could in turn have an impact on the underlying property.
- Timing risk – There is a risk that the Equity Sub-Fund may not proceed if the proceeds in relation to the Property Sub-Fund are not raised for the debt (mortgage) component. If this situation were to occur the Equity Sub-Fund would not proceed, and the capital raised would be returned back to the investors.
- Security Property Sale risk- There is a risk that the Security Property may not be able to be sold at the conclusion of the term of the Property Sub-Fund. This may cause delays in the repayment of capital to the Loan Sub-Fund beyond the Loan Sub-Fund’s term.
- Value changes – The value of an Investor’s investment will go up and down in accordance with the value of the Underlying Property. There is no guarantee that the value of the investment will increase, and it may in fact decline in value.
- Insufficient income – The costs associated with Underlying Property may exceed its income, however if there is a shortfall Investors will be given an opportunity to subscribe for additional Units in the Sub-Fund to meet those expenses pro rata to their Unit holding in the Sub-Fund. Investors who don’t subscribe for further units will have their investment in the Sub-Fund diluted.
- Unexpected property event – The risk that the Underlying Property may be negatively impacted due to a property specific event, for example, a change could occur to local zoning rules, development of competing and other events that were not anticipated at the time of acquisition.
Fees and Costs
Refer to section 13 of the PDS for Fees and Other Costs
The Management Fees for managing your investment
- Cash held in your Cash Account 0.22% p.a.
- Platform fee of 1.1%
- Property Sub-Fund 0.66% p.a. of the Gross Asset value of your investment
Set out in the table below is illustration of the campaign costs that are likely to be incurred. An Investor who participates in a Campaign and has had an Active Bid which fails to result in the formation of a Sub-Fund will be liable (in a proportion that is equal to the amount of their bid divided by the sum of all Active Bids at the time the Campaign costs were incurred) for the Campaign costs incurred by DomaCom. The investors will be only liable for Campaign costs and Acquisition costs that are set out below if the Sub-Fund was not created, as these costs have been incurred prior to the acquisition of the property.
The settlement costs set out below are only incurred and payable if the Sub-Fund is created and the property acquired.
If the Sub-Fund is established, these costs will be deducted from the Sub-Fund and only those investors that accept the SPDS will incur the on boarding costs – Campaign, Acquisition and Settlement costs.
The costs below are an example of the campaign costs, the actual costs may differ and will be set out in the SPDS.
|Independent Accountants report||$10,000 – 15,000+GST|
|Legal Review of Contracts||$2,500- 5,000+GST|
The following costs will be incurred, whether or not the property is purchased.
|Legal costs (if contracts require further amendments||$2,000-$2,500+GST|
Below is an estimate of the following Settlement costs if the purchase is successful and a Sub-Fund is created. These costs will only be incurred if the Property is purchased and will be paid from the capital raised on the acceptance of the SPDS.
|Estimated Settlement Costs||Estimates|
|Conveyancing costs||$1000 – $2,500+GST|
|Stamp Duty||Varies based on state and Property Value|