Each property we acquire is placed in its own Unit Trust structure, separate from any other investment. This special purpose vehicle allows the trust to operate independently and without ‘contamination’ from other trusts. Owning a property in a Unit Trust structure allows units to be issued to investors, much like shares in a company. A crucial difference between a Unit Trust and a company is that a Unit Trust is not directly liable for tax but rather is a ‘flow through’ entity placing the burden of tax on the individual or entity that owns the units.
Unit Trusts are managed according to their own particular set of rules, as set out in the Trust Deed.
The Australian Financial Services Licence under which Eagle Property Group operates permits the issue of units to Wholesale Investors only, as defined by the corporations Act.