June 2014 – GPS Update

Newsletter

Pooled Fund Opening

Foreword for the PDS to be issued in July 2014 when we reopen the GPS Invest Pooled Fund for investment.

Trying to work through a raft of legislation and regulation (which includes restrictions on words and language which can be used) and meeting the “clear, concise and effective disclosure” requirements is quite difficult.

I would appreciate feedback. Particularly as to how easy it is to understand how the GPS Invest Pooled Fund differs from Pooled Funds of the past.

Update

Current offerings and apology (sort of)

We appreciate concerns about a current shortage of new loans and are working on remedying this in coming months. Due to a large number of very successful projects being paid out early, our focus and priority in recent months has been on ensuring that all current Investors have a smooth transition into new loans with minimal downtime. Look after what you have got and the rest will look after itself.

Please remember that GPS lends because it wants to lend and not because it has to lend.

If you have moneys coming out of term deposits or other moneys to invest then please contact us so we can tailor a plan to meet your requirements. We now “pencil in” commitments so that our investors can achieve more diversity from the GPS book of loans.

Sage Apartments (Minamarc Pty Ltd) is scheduled to settle later this month so please register your interest.

New Loans

In June and July 2014 we expect to release some new loans. Nothing too exciting. Just more of the same – which is what our Investors want. The following loans are currently undergoing due diligence:

Sage Apartments (Minamarc Pty Ltd)

This was a bank deal which GPS won on the three month rule (i.e.: if the service provided by GPS can reduce the project timetable by three months then we are competitive on price with the banks). The end product of this development falls into the first home owner / investor market; LVR is expected to be sub 60%; there are pre-sales and an experienced development team.

Jazi Pty Ltd – 2

Repeat GPS Borrower, Andrew Comino, is following up the success of Jazi Pty Ltd -1 with another development at Norman Park. This project is for 10 units with a very similar team.

Hawthorne Road

Another unit development at Bulimba from the team that brought us Wambool Street Pty Ltd, Alpha Annie Pty Ltd and the current 19 Princess Street Pty Ltd loan (this loan is now fully subscribed).

Norman Rise

The next project from the team who will shortly pay out the 34 Drydock Pty Ltd loan. Settlement of the land is scheduled for mid-July 2014 with construction due to commence in January 2015 once all lending requirements, such as pre-sales, have been met.

Tell a friend

Growth in the GPS loan book is predominantly referrer based. Matching good product to Investor demand is a difficult process due to the time it takes to put a loan through our due diligence process. We “do not build and they will come” as this would not be good prudential practice. GPS only writes loans it knows it can fill.

If you are happy with the service and returns provided by GPS then please “tell a friend” so we may commence the process for them to become another satisfied GPS Investor.

 

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