Regulations on public property syndications that prescribe the minimum information that must be made available to investors in a disclosure document have been published. The regulations are intended to provide safeguards, and protect vulnerable and inexperienced consumers.
Fundamentally, statements, presentations and descriptions should not convey false or misleading information about public property syndication schemes, nor omit material information in the public offer of shares.
Material information is defined as information that an investor needs in order to make an informed decision. Information to be made available includes:
- full details about the promoter of the syndication scheme;
- details about the management of the syndication vehicle;
- the company description and structure;
- the property investment;
- the tenants;
- income and expenditure projections; and