Asset: 62 MW farm (share of ownership) with 20/80Mwh Battery
Structure: Units in Genius Energy Managed Investment Trust
The initial Capital required is to complete Stage 1 of the project. This money will be invested to complete all pre-construction tasks including permits, planning and ensure all documentation is compliant. The completion of stage one will mean that the site is completely ready for the solar farm installation.
Units are being offered at $1.00 per unit. It is expected that at the end of stage 1 and based on the expected capital value of a shovel ready site (based on the values attributed to a number of other sites) that units will be valued at $1.30.
It is expected that Unit prices for Stage 2 will be set at $1.30,
At the end of Stage 1 investors can remain in the project or can opt to exit the project via the liquidity facility offered by the Fund Manager.
Yield: 10-15% per annum targeted
Consume or Sell: daily electricity you generate
Type: direct investment
Regulated by: ASIC, ASIX, AEMO
Entity: SMSF, Corporate, Business, Trust, Direct, Mortgage
Triple Bottom Line:
● Pre tax yield of 15% p/a targeted on all generating units
● Free energy for 25 years
● Units can be traded
● Consume the electricity generated
● Counter-cyclical asset class
● No management overhead
● Plug and play enhancement to any construction project
● Reduced carbon footprint
● Ethical investment
● Send a strong green message
● Promotes community and indigenous ownership of energy generation
● Creates jobs in renewable energy industry
● Generator is consumer; direct access to wholesale markets
Invest or Consume?
A typical consumer or business may use around 25 kWh of electricity per day, Solar panels on a Genius Energy Solar Farm will generate at 5.6 sun peak hours per day. Investor would need to buy 5kW of solar panels to generate their own electricity. 5kW solar panels x 5.6 sun peak hours = 28 kWh of electricity.
Buy your 5kW of solar panels equivalent in units:
10,000 x $1.00 units = $10,000
10,000 x $1.50 units = $15,000
Genius Energy Savings over 25 years
|Stay with Retailer||Genius Energy||Rooftop Solar|
savings over 25 years
savings over 25 years
savings over 25 years
|Not resalable||Strong resale value||Poor resale value|
|New house requires new contract||Moves house with you||Stays behind when you move house|
|Single site||Multiple sites||Single site|
If you would like to invest in the Genius Energy – Solar Farm project, 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 Genius Energy – Solar Farm project 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 Genius Energy – Solar Farm project crowdfunding campaign until you accept the offer contained in the SPDS (which will include the specific details for the properties).
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 Sections 7 and 12 of the Risk section of the PDS for an explanation of the risks involved in an investment in the DomaCom Fund the features of a ‘Special Opportunities’ subfund.
Specific risks of this investment:
• Value changes – The value of an Investor’s investment will go up and down in accordance with the value of the Underlying Investment. There is no guarantee that the value of the investment will increase, and it may in fact decline in value.
• No guarantee – Returns are not guaranteed, and Investors may lose some or all of their capital.
•Past performance – There is no empirical data on the performance of this type of investment in the proposed location. All projected returns are based on best analysis of the current wholesale and retail energy markets.
• 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 – There are a range of events that can damage the Underlying Property including acts of God (fire, flood, earth quake and other natural disasters) through to accidents, negligence, and failures of maintenance. While insurances will be in place it may not cover or may not fully cover such losses.
• Insufficient income – The costs associated with Underlying Investment 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.
• Vacancy risk – Genius Energy will be appointed to manage the property and derive income from the underlying property and its improvements. There is a risk that the property will not generate the income that has been budgeted for. If this were to occur the investors may be required to raise further funds to offset the expenses of running the property.
• Unexpected property event – The risk that the Underlying Investment 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.
• Economic risk – There is a risk that the general economic conditions in Australia may change in relation to interest rates, employment rate and economic growth that could in turn have an impact on the investment and energy markets and specifically the value of the Underlying Property.
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.
- Investment Sub-Fund 0.88% p.a. of the Gross Asset value of your investment
- Loan Sub-Fund 0.44% 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.
|Contract review and title search||$500-$1000+GST|
|Building inspection and pest report||$500-$1500+GST|
|Property valuation report||$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|