ABOUT SURF 3
SURF 3 is an unlisted retail property fund which commenced on 10 July 2018. SURF3 invests in three (previously four) retail properties in NSW, QLD & VIC.
SURF 3 management are actively focused on maximising sustainable income and over the fund life the fund’s total returns. SURF 3 achieves secure income streams from strong tenancy profiles with greater than 70% of its income from leases to Woolworths Group Ltd and Target Australia. Specialty tenants income is mainly from medical centres, pharmacies and other non-discretionary focused retailers.
In 2020 SCA Unlisted Retail Fund 3 (SURF 3 or the Fund) sold its property at Swansea. The proceeds of the sale of this property were used to repay debt. As the Fund has deleveraged the Fund’s income returns are expected to be lower in the future.
Since the sale of Swansea property, the property market has remained strong with strengthened buyer demand particularly for properties similar to those held by SURF 3. This has been evidenced by recent transactions in the market and is reflected in the improved external independent property valuations commissioned by the Responsible Entity (RE) of the Fund, which saw the value of SURF 3’s remaining properties increase from $40.0m at 30 June 2020 to $50.2m at 30 June 2021 on a like for like basis. This is an increase of over 25% in one year and we are unlikely to see this magnitude of per annum growth in subsequent years.
As outlined in the Product Disclosure Statement of the Fund, and permitted by the Fund’s Constitution and the Corporations Act 2001 (Cth), the RE of the Fund may sell the Fund’s remaining properties prior to the end of the Fund’s nominal term (which ends in 2024).
The RE of the Fund has commenced discussions with agents on the possible sale of the properties.
|Member Notice – Change of Auditor||11 November 2020|
|Period Ended||Date Paid||Distribution (cpu)|
|30 June 2021||30 July 2021||1.775|
|31 March 2021||22 April 2021||1.775|
|31 December 2020||28 January 2021||1.775|
|30 September 2020||16 October 2020||1.775|
|30 June 2020||3 August 2020||3.550|
|31 March 2020||N/A||Nil|
|31 December 2019||28 January 2020||1.775|
|30 September 2019||16 October 2019||1.775|
|30 June 2019||31 July 2019||1.775|
|31 March 2019||23 April 2019||1.775|
|31 December 2018||21 January 2019||1.77|
|30 September 2018||17 October 2018||1.60 (part quarter)|
Distribution Tax Components
In respect of each income tax year, you will be required to include your share of the net income of the SURF3 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 SURF3 may include various components, the tax treatment of which may differ. If you are an Australian tax resident and an individual, distributions from SURF3 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 SURF3 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.
Q: When will SURF3 make distributions?
A: SURF3 intends to make distributions quarterly in the month after each calendar quarter. The distribution for the June calendar quarter may be delayed 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 SURF3 Unit Registry on 1300 780 316.
SURF3 Unitholder Enquiries
If you have any queries relating to a unitholding in SURF3 please call the SURF3 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.
SCA Property Group
Level 5, 50 Pitt Street
Sydney NSW 2000
Telephone: 02 8243 4900