ANNUAL REPORT 2018 ARSN 165-569-335 The Quantum Group conducts a diversified boutique funds management business and operates a complete superannuation compliance and administration service. It has a strong background, knowledge and experience in property, accounting, and investment markets. Quantum s aim is to bring investors with limited capital the opportunity to invest in significant commercial, retail and development properties via Quantum syndicates and funds. Quantum was formed in 1986 to service the tax structuring and investment needs of high net worth individuals. Our philosophy Smart Investment Takes Time and Innovators in Investment, with the introduction of its Fund Cloud reporting platform and QReal product that allows investors to purchase Apartments off-the-plan at a developer s discount.
Inside this Report 1. Highlights 1. Highlights 2. Overview of the Fund 3. Financial Reports Managers Overview On behalf of Quantum Funds Management Limited, we provide this report to investors on the operation of the Quantum Residential Property Trust ARSN 165 569 335 to the period to 30th June 2017 and incorporating additional information on new and proposed projects for the funds for the later part of 2017 and into 2018. 2018 FINANCIAL YEAR SUMMARY Investment Raised > Fund distribution paid $1,525,155 to 30th June 2018. > The Funds total value is $16,962,024. Current Projects include; Mahogany Upper Mount Gravatt, Queensland Development Located in close proximity to Westfield s Garden City and Griffith University, Mahogany. 64 high level apartments, with demolition commenced and ground works started in November 2015. Finished in late 2017. 2
Linton Kangaroo Point, Queensland Development Linton, is Quantum s newest development, and presents investors an exciting opportunity to invest in a secured, DA approved residential development project in the affluent suburb of Kangaroo Point. It is closely located to a number of boutique retail stores, restaurants, cafés and the Gabba Stadium. Linton consists of 144 apartments with a roof top bar, swimming pool and restaurants. Alston Malvern East, Victorian Development The subject site is located within the suburb of Malvern East, located 12km s south-east of Melbourne CBD. Malvern East is home to the largest shopping centre in the southern hemisphere, Chadstone Shopping Centre and is serviced by trains, trams and bike paths which joins and is an integral part of the Greater Melbourne network. Malvern investments propose the purchase of the above two properties within the Suburb for land consolidation and medium density development. At this stage, it is anticipated that up to 26 apartments can be accommodated at the consentable development height limit. 3
President Sutherland, New South Wales Development President Avenue presents a 3 lot residential amalgamation in the suburb of Sutherland within the LGA of Sutherland Shire. The subject site is located approximately 30km south of Sydney CBD and is a consolidated land parcel of approximately 1,671 sqm which will see a delivery of circa 31 residential units across 6 storeys. Within the Sutherland Centre, President Ave has good access to local amenities being approximately 450m south east of the Sutherland shops and services and is well located to access rail (600m walk) and bus (20m) both of which frequently service Sydney CBD. This project will provide the opportunity for Quantum to create presence within a loyal local market with continuous growth and benefiting from a new gazzeted LEP which will encourage job growth and population growth within the area. Linden Sutherland, New South Wales Development Linden St provides an opportunity for Quantum to secure a newly rezoned R4 site within the LGA of Sutherland Shire. Currently occupied by single dwelling housing, the site of approximately 2109sqm will realise a circa 40 unit project given the newly gazzeted SSLEP2015 which will allow for higher density development within the area. The subject site is located 30km from Sydney CBD and is sitting in an advantageous location given close proximity to local amenities including being 300m from the train station and within a 1km catchment of all shops, schools, cafes and leisure centre within the Sutherland Centre. 4
2. Overview of the Fund The QUANTUM RESIDENTIAL PROPERTY TRUST was established in 2013 and is structured to hold investment interest that provide partial funding to various developments in Australia and in some cases also provide investors the right to purchase an Apartment in the development project at a substantial discount to the then current market value of apartments in each project. The fund has performed quite well over the period to 2018 we have finalized the finance on the Linton project, we have started construction on the Malvern project called Alston with that completion day approximately May/June next year. In relation to the President in Sutherland project this is due for completion in around October 2018 and to finalize the current sales, need the settlements to pay off the senior bank debt and then move for the final sales to pay off the balance of the investment in both the Quantum Residential Property Fund being the PI and PA units and the L class units in the Quantum Mortgage Trust. In relation to the Linden project, we have been raising funds using the SL class that has been used to start the development and we are close to issuing the new class of units for the SA and SI class and that is looking to be completed throughout 2019 year. Direction of the Fund The direction of fund at this point is to look for new properties, predominately we are focusing in the Sydney and Brisbane markets. 3. Financial Reports The financial report of the Trust is included in this report below: 5