SURF1 2019-10-17T21:40:00+00:00
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SURF1

ABOUT SURF1

SURF 1 is an unlisted retail property fund which commenced on 1 October 2015. SURF 1 invests in newly constructed freestanding properties in NSW leased to Woolworths Group Ltd.

SURF 1 management are actively focused on maximising sustainable income and over the fund life the fund’s total returns. SURF 1 achieves secure income streams from a strong tenancy profile with greater than 95% of its income from leases to Woolworths Group Ltd.

The Fund’s nominal term is 5 years, ending in October 2020. As permitted by the PDS, SURF RE has recently initiated a sales process for the SURF 1 portfolio, which may result in properties being sold for the same as or more or less than their respective book values and may take 6 -18 months beyond the initial term of SURF 1. Proceeds of sale may be used to reduce debt or for distribution to unitholders.

During July 2019, SURF RE entered into a contract to sell Burwood for $12,000,000 and an option, exercisable by the Fund, to sell Inverell for $15,000,000.

Burwood’s carrying value at June 2019 was $11,000,000 and it was independently valued in July 2019 for $11,000,000. Inverell’s carrying value at 30 June 2019 was $14,000,000 and it was independently valued in June 2019 for $14,000,000. Accordingly, these assets have been sold for $2,000,000 above their book value. The remaining 3 properties are being separately marketed by an expression of interest campaign. Details on the progress of the sale of Burwood, Inverell and the other properties in the portfolio will be updated on our website at https://www.scasurf.com.au/surf1/.

Property Portfolio

Property Location
Burwood Dan Murphy’s Burwood, NSW
Fairfield Heights Woolworths Fairfield Heights, NSW
Griffith North Woolworths Griffith, NSW
Inverell Big W Inverell, NSW
Katoomba Dan Murphy’s Katoomba, NSW

Quarterly Updates

Distribution History

Period Ended Date Paid Distribution (cpu)
30 September 2019 16 October 2019 2.10
30 June 2019 31 July 2019 2.10
31 March 2019 23 April 2019 2.10
31 December 2018 21 January 2019 2.10
30 September 2018 16 October 2018 2.10
Period Ended Date Paid Distribution (cpu)
30 June 2018 31 July 2018 2.05
31 March 2018 20 April 2018 2.05
31 December 2017 22 January 2018 2.05
30 September 2017 16 October 2017 2.05
Period Ended Date Paid Distribution (cpu)
30 June 2017 31 July 2017 2.04
31 March 2017 21 April 2017 2.04
31 December 2016 16 January 2017 2.04
30 September 2016 26 October 2016 2.04
Period Ended Date Paid Distribution (cpu)
30 June 2016 29 July 2016 2.02
31 March 2016 19 April 2016 2.02
31 December 2015 19 January 2016 2.02

Financial Reports

Date
Financial Report 30 June 2019
Financial Report 30 June 2018
Financial Report 30 June 2017
Financial Report 30 June 2016

Distribution Tax Components

Taxation

Distributions

In respect of each income tax year, you will be required to include your share of the net income of the SURF 1 in your assessable income for tax purposes. SCA Property Group will provide unitholders with Annual Taxation Statements by August of each year.

You should not complete your tax return for the prior tax year before you receive this Annual Taxation Statement.

Distributions from SURF1 may include various components, the tax treatment of which may differ. If you are an Australian tax resident and an individual, distributions from SURF 1 received after June will generally need to be included in your tax return for the preceding tax year.

Annual Taxation Statement

If you are an Australian tax resident and an individual you will receive an Annual Taxation Statement by August each year. Amounts in this Annual Taxation Statement will generally need to be included in your tax return for the preceding taxation year.

You should not complete your tax return for the preceding taxation year until you receive the Annual Taxation Statement.

To obtain your Annual Taxation Statement go to www.investorserve.com.au or contact the SURF 1 information line on 1300 780 316 (within Australia) or +61 2 9290 9600 (outside Australia) to request the Annual Taxation Statement to be sent to you.

Resident withholding tax deductions

If you are classified as an Australian tax resident for Australian tax purposes you will have resident withholding tax deducted at the rate of 47% on the full amount of your future distributions unless you provide your Tax File Number (TFN) or Australian Business Number (ABN).

TFN withholding tax is a refundable credit. That is, if the credit exceeds the tax liability you would otherwise have, it will be refunded to you by the Australian Taxation Office. For further information you should contact your own tax advisor.

Go to www.investorserve.com.au in order to provide your TFN or ABN or your bank account or financial institution account information and other details online for your holding. Alternatively contact the SCP Information Line on 1300 780 316 (within Australia) or +61 2 9290 9600 (outside Australia) to request the forms to be sent to you.

FAQs

Q: When will SURF 1 make distributions?

A: SURF 1 intends to make distributions quarterly in the month after each calendar quarter. The distribution for the June calendar quarter may be delayed in order to determine the final annual taxation components.

Q: How do I change my bank or EFT or address details or get details of may distribution or other unitholder records?

A: Please contact the SURF 1 Unit Registry on 1300 780 316.

Contact Us

SURF 1 Unitholder Enquiries

If you have any queries relating to a unitholding in SURF 1 please call the SURF 1 information line:

1300 780 316 (within Australia)

+61 2 8016 2885 (outside Australia)

Or you may contact:

SURF@boardroomlimited.com.au or log onto www.investorserve.com.au to update your bank account, TFN, ABN or other details.

General Enquiries

SCA Property Group

Level 5, 50 Pitt Street

Sydney NSW 2000

Telephone: 02 8243 4900