Frequently Asked Questions

Please find below the most important questions for people new to investing with Senior Trust Retirement Village Income Generator;

WHY DO PEOPLE INVEST IN THE SENIOR TRUST RETIREMENT VILLAGE INCOME GENERATOR?

There are many reasons why people might choose to invest in Senior Trust's funds. But typically we find that the key three compelling reasons are;
 

  1. A HISTORY OF ATTRACTIVE RETURNS
    For more than 10 years the Senior Trust management team have been delivering investors steady attractive returns backed by solid Retirement Village assets. Our objective is to lend to retirement and aged care operators in a way that protects investors capital, as well as enabling us to pay a consistent, reliable and attractive return to our Shareholders.
     

  2. STEADY INCOME BACKED BY SOLID ASSETS
    Before making a Loan, an independent registered valuer assesses the market value of the assets offered by the borrower as security for the Loan. We ensure that retirement and aged care operators have a material stake in the Aged Care Facility or Retirement Village, provide personal guarantees or similar covenants in respect of all loans, and that total Fund and prior ranking lending is limited to 75% of an independently assessed value

WHAT ARE THE SOME OTHER KEY FEATURES?

  1. The Company will be a Portfolio Investment Entity (PIE).

  2. Senior Trust invests funds in loans to the retirement village sector, a sector that is growing strongly because of the rapidly increasing number of retirees in New Zealand.

  3. Senior Trust investments are well secured by mortgages over retirement villages, capped at 75% of the independently-assessed value of each retirement village.

  4. Senior Trust only invests in retirement villages with proven, reliable and competent operators.

  5. Senior Trust knows the retirement village sector well. The management team has been involved in the industry since 2010

  6. The targeted distribution rate, which is the rate targeted by the Board from time to time, is the estimated net return derived from loans made by the Company. The target is calculated after making an allowance for the deduction of fixed costs from the predicted interest

  • HOW OFTEN IS INVESTMENT INCOME PAID?
    Any income earned on your investment is distributed every quarter. 

  • IS THE FUND A PORTFOLIO INVESTMENT ENTITY (PIE)?
    Yes.

  • WHERE WILL MY INCOME DISTRIBUTION GET PAID TO?
    The Application Form also asks you to specify the bank account you want any quarterly distributions direct credited to.

  •  HOW DO I EXIT?
    The following is a description of the ways in which you may be able to transfer or offer your shares to the Manager or the Company for repurchase. However, none of these mechanisms are guaranteed at any time and Shareholders should not consider that these mechanisms are an assurance of liquidity.

    Share Transfer
    Shareholders may only transfer/sell their Shares at the discretion of the Company. Senior Trust intends to try to match Shareholders who are looking to sell their Shares with new Shareholders who are wanting to acquire Shares in the Company. This means you may be able to sell your Shares directly to another holder, if there are interested buyers. However, there is no assurance that a willing buyer will be found for your Shares.

    Share Repurchase by the Manager
    Senior Trust also intends to offer an alternative means of exit for those Shareholders who have a material change of circumstance and need to sell some or all of their Shares. An arrangement has been put in place between Senior Trust and the Manager whereby the Manager has the ability (but not the right) to acquire Shares from Shareholders wishing to exit, in certain circumstances. This arrangement has the objective of providing a potential withdrawal mechanism for Shareholders who provide the requisite six months’ notice. It should be noted that the acquisition of Shares by the Manager is entirely at the discretion of the Manager and the Board, is not guaranteed and should not be relied on as an assurance of liquidity.

    Withdrawal fees may apply where a Shareholder's request to have their shares repurchased by the Manager, is accepted. A description of withdrawal fees is set out below. The price at which the Manager may agree to repurchase your Shares will be the applicable Share Issue Price as at the date of the request or approval (not as at the date of buy back) and will be subject at all times to the Manager meeting all necessary approvals and governance requirements.

    The Funding Agreement can be found on the Disclose Register at www.business.govt.nz/disclose under Senior Trust’s Offer number (OFR12802). The Manager may not, at any time, hold Shares in Senior Trust which are in excess of 20% of Senior Trust's issued share capital.

    Share Buyback by the Company
    In addition, the Company can repurchase its own Shares in accordance with the procedures set out in the Companies Act. You may request to withdraw all or part of your investment at any time by completing a Share Buyback Request, in the form required by us. The applicable Buyback Price for each Share will be calculated as at the Valuation Date on which the relevant Shares are repurchased (not the day the Share Buyback Request is received by us). If the Company accepts your request, including ensuring compliance with all relevant Companies Act requirements applicable to a selective buyback of shares, the Buyback date will be the first Valuation Date which occurs following a period of 6 months after the date on which the relevant Buyback Request is received by the Manager. This timeframe can also be shortened with the Manager’s approval.

    If the period is shortened to a date falling before the end of the two year period (instead of initial 6 month period falling after that 2 years threshold), the shareholder would be required to pay 2% fees of the full withdrawal / transfer amount (instead of 1%).

    It should be noted that acceptance of a Share Buyback Request is entirely at the discretion of the Company, is not guaranteed and should not be relied on as an assurance of liquidity.

    Withdrawal fees may apply where a Shareholder's request to have their shares bought back by the Company, is accepted. A description of withdrawal fees is set out below. The price at which the Company may agree to repurchase your Shares will be the applicable Share Issue Price as at the date of the buyback (not as at the date of the request or approval) and will be subject at all times to the Company meeting all necessary approvals and governance requirements.

  • WHAT IS THE MINIMUM AMOUNT I CAN INVEST?
    The minimum investment is $,1000, and minimum increments of $1,000 thereafter.

  • WHAT DOES 'TARGETED DISTRIBUTION RATE' MEAN?
    The calculation of the ‘targeted distribution rate’ is based on the interest rate Senior Trust charges on its loans to various retirement villages, less expenses incurred by, and any fees paid to, Senior Trust.  

  • WHAT IS SO IMPORTANT ABOUT THE OFFER DOCUMENTS THAT I HAVE TO READ THEM?
    The offer documents are for your protection. It provides clear, concise and effective information necessary for you to make an informed decision as to whether to invest in Senior Trust or not. The risks of investing in are provided in the Offer Documents. We strongly recommend you read the Senior Trust Retirement Village Income Generator Product Disclosure Statement.

  • HOW DO I TRANSFER THE INVESTMENT MONEY TO SENIOR TRUST?
    Your investment will only be accepted accompanied by a correctly completed Application Form. That Application Form allows you to specify a bank account from which your investment funds can be withdrawn by Senior Trust. Alternatively, you can send us a cheque with a correctly completed Application Form.

REQUEST A PACK

​For All Corporate and Investor Enquiries:

Senior Trust Retirement Village Income Generator
PO Box 113120, Newmarket, Auckland
Attention: John Jackson


Freephone: 0800 609 600
Email: info@seniortrust.co.nz

Physical Head Office Address:

44 Constellation Drive,  Rosedale, Auckland

Please send an information pack by:

Copyright © Senior Trust. All rights reserved. 

It is important to note when investing that past performance is no guarantee of future performance. A minimum subscription of $1,000 applies. Applications will only be received on the application form supplied with the Product Disclosure Statement. Please ensure you read the Product Disclosure Statement prior to investing.