Apartments discounted to valuation all due to the innovative Property Maximiser ® where collective investment means lower prices.

Exceptional one bed apartments from $275,000
Value two bed apartments from $315,000
Stunning three bed apartments from $459,000

Snapshot

Welcome to BayLife, Deception Bay. Deception Bay, a northern suburb of Brisbane, is one of the fastest growing areas of Queensland at the southern end of the expanding Sunshine Coast growth corridor. The BayLife development comprises 92 one, two and three bedroom apartments and is ideal for the property investor and superannuation fund looking to optimise returns and capital growth as well as the owner occupier looking for a great value place to live right near the water. Location is ideal, being just 30 minutes north of Brisbane and 30 minutes to Brisbane CBD and an easy 40 minute drive to the Sunshine Coast.


Being situated right on beautiful Moreton Bay and all it has to offer, BayLife provides a sound financial investment along with an exceptional lifestyle.


Construction commencement of BayLife is targeted for Early 2011 with completion in Early - Mid 2012 and apartment settlements soon after. Complete on-site management will be provided. Designed with a residential resort atmosphere with apartments facing inwards onto a beautifully landscaped pool oasis. Designed to optimise a sense of community, rental yield and capital growth.


Now let us introduce you to the innovative Property Maximiser® - where savvy property investors and owners alike achieve great value. How is this done you may ask? Real value is achieved because firstly we target to sell nearly all 92 apartments before construction commences effectively eliminating sales risk. Secondly we raise capital using the innovative Property Maximiser®. Complete value transparency will be evident as all development costs and feasibilities of BayLife will be clearly detailed.

The Property Maximiser® mechanics are simply and straight forward and in brief are:

1.Select the apartment you wish to purchase and enter into a Purchase Contract. Your contract purchase price is at a 10% discount to the valuation of the apartment. As an example a $350,000 apartment is discounted to $315,000.

2.To receive that discount benefit requires an investment into a Prospectus lodged with ASIC of 20% of the apartment purchase price with these funds then utilised for development purposes. Because strict pre-conditions apply to the use of the funds for development risk is mitigated. Using the example this is 20% of $315,000 being $63,000.

3.The $63,000 invested earns 6% per annum paid monthly until settlement of the apartment. This will enable an investor who has borrowed against, for instance, their own home, to service their borrowings.

4.Using the example when construction is complete and the apartment settles you will be required to pay $252,000, being the purchase price of $315,000, less the $63,000 invested. These mechanics are pre-agreed with the construction financier. Effectively the investor is paid in preference to the construction financier.

5.On this basis when you settle your apartment the 20% of purchase price required to settle without mortgage insurance is already available based on each purchasers financier providing the balance 80%.

6.   We can also assist you in all aspects of finance and superannuation packaging and through the on-site management all aspects of rentals. Our target is to make the investment and the investment process as easy as possible for you.

Timeline

• August 2010 – December 2010 - Registrations of Interest. All registrations time and date stamped and preference as to final sale will be dealt with in order of receipt.
• October 2010 – December 2010 - Distribute prospectus, independent reports, all relevant material and apartment purchase contracts. This is detailed in full in Q+A.
• January 2011 - Prospectus funds drawdown to commence development.
• February 2011 - Construction commencement.
• February 2012- Construction completion.
• March – April 2012 – Settlement of apartments.

BayLife Capital Limited Prospectus

BayLife Capital Limited will lodge a prospectus with the Australian Securities Investment Commission in third quarter 2010 to enable the an apartment purchaser to also invest into the development as per Property Maximiser® explained on the home page and Q & A. This Prospectus will be available to those who register their interest in late 2010. The issue of a Prospectus means complete transparency with valuations, development feasibility, risk analysis, and related party transactions all for investor review. Specific Q & A are re-visited below.

Q & A – All Explained

This extensive Q & A has been devised to enable a comprehensive understanding of the BayLife apartments, the Prospectus and Property Maximiser®. This is to enable a prospective apartment purchaser and investor to assess your interest in full as to your participation in the BayLife development. None of the following is meant to or shall replace the contents of the BayLife Capital Limited Prospectus.    

Before all the questions what is the fundamental benefit of what is proposed?

The first question to ask yourself is ‘do you believe that everything runs in cycles’. If you believe that there will not be an upswing do not invest. With respect to property the economic crisis has pressured prices downwards which includes construction price. There is no doubt that the best time to build is in the economic trough. The availability of construction finance and capital has dried up considerably to enable developments to get started. Hence building starts have gone to very low levels which in due course will trigger a strong demand upward surge. So build now and reap the benefits.

What is proposed with BayLife is simple – invest collectively and purchase an apartment individually at a discount. This process enables the capital to be raised and presales to be obtained. Benefit from the resultant apartment at really great value – essentially approaching the cost of development and construction.        

Why BayLife and Deception Bay?

Deception Bay is now regarded as one of the most up and coming suburbs of Brisbane with the best investment potential - an investment hotspot according to property investors. A forgotten property gem until recently. A complete independent report will be available by Midwood Investments on Deception Bay and its growth attributes to those who register their interest. 
BayLife offers an opportunity to purchase value for money property with excellent upside rental returns and strong rental demand. Investors are able to buy on today's values in a high capital growth area and enjoy the escalated rents forecast at construction completion in early 2012.

How close is BayLife to the water, shopping, schools, transport, golf and all amenities?

BayLife is only 100 metres from the Bay and within easy walking distance is the shopping centre with major and boutique shops and amenities. Both primary and secondary schools are close by and a good bus service. Anzac Avenue and Deception Bay Road has seen the development of a plethora of shopping and light industry to service every need. A world class golf course is just down the road at North Lakes – and a host of other sporting and pleasure activities. Of course remember, you are right on the bay for boating, sailing and jet skiing to name a few. Full details on all of this will be available in the Demographic and Service Report released early December.      

Who owns the BayLife land and how big is the site?

The 7,400 sqm BayLife site is currently owned by BayLife Pty Ltd which is owned by entities associated with the developer Timothy Wright. The site is a flat and level site ensuring ease and economy of construction. There is new buildings to the north (a residential apartment building) and west (a retirement centre) of BayLife.  

What about rentals and capital growth?

Rentals are strengthening. Historically like many developing suburbs Deception Bay has been known as a lower rental area. With the complete new foreshore development, being nestled between North Lakes and Redcliffe and access to the freeway rents are increasing well. Traditionally capital growth and rental increase are optimised in these developing suburbs. A key reason for this is that larger development sites which have been amalgamated can be purchased at value which can then be passed on as lower final apartment prices.

Based on the 10% apartment discount value the rental to apartment purchase price will be very sound. It also needs to be remembered that the actual settlement of your apartment is not untilearly 2012 and by that time rents are expected to have strengthened considerably more.

It must be remembered that there is still a 1,000 people a week coming to the south east corner of Queensland and one of the prime growth areas for accommodation is the southern end of the Sunshine Coast growth corridor.

Aspects of growth and rental will be addressed in the Midwood Report as well as other associated reports released early December. 

When will I get a full pack of all information?

Soon after completion of the Register of Interest process scheduled to complete a complete pack of information will be available on the web site to enable you to make an informed decision including:

• BayLife Capital Limited prospectus
• BayLife Capital Limited Snapshot
• Valuation Summary
• Midwood Investment Report
• Investment and Depreciation Analyses
• The Mathemo Factor Explained – Why Act Now
• Other Reports

 Tell me about the architectural design and facilities of BayLife?

While BayLife is close to the water only a few apartments have water views. Hence our renowned architect Aaron Muller and his team have designed most apartments to face inwards to a very substantial ‘oasis’ including the pool, out door gym, BBQ areas, and entertainment palapa. All designed to enhance the sense of community and liveability. BayLife has been designed to the highest standard to suit investors and owner occupiers alike.      

In addition to that described above indoors there is community facilities, two lifts, and apartment owner storage.  

Why build now in this economic climate – very few new developments are starting?

There is no doubt that 2007 saw the peaking of build prices. Since then with the reduction in building starts and the lowering of construction prices including steel, the availability of sub contractors and need for work that no better time exists to build than now.

In the Midwood Investment report Bill Morris will clearly map out the property cycles. The best time to build and acquire property is at the bottom of the cycle. With all the problems the banks have had it is at this time that construction finance is very tight, banks require very high presale levels, property investors are seeking bargains and hence development starts have subsided to minimal.       

As in previous cycles once this happens pent up demand overtakes supply. The economy improves, money loosens up and property investors realise that they need to act or else they will be into the next upswing. From what has been a flat demand can see demand increase dramatically.  

What is the predicted economic cycle for when BayLife completes?

The Bill Morris Midwood Investment report will detail in full the property cycle and where we stand in that property cycle. It is predicted that late 2010 and then 2011 will see strong property prices again. 

From a property perspective the fundamentals why this is predicted are actually reasonably straight forward –

• Economic crisis started in 2007 – 2008
• Hit rock bottom this year
• Recovery 2010 – will be driven by low stock supply and pent up demand
• Full swing 2011 – 2012

  Why discount the apartments 10%?

Every purchaser wants to see real value for money. The apartments are discounted 10% so purchasers can clearly see value for money plus the benefit received for contributing to the collective development investment.

Essentially the developer has 1) given away development profit in exchange for certainty in that all apartments are sold 2) given away development profit in exchange for capital and 3) created a scenario where all apartments sold and capital raised is appealing to a construction financier.           

How do I go about purchasing an apartment and what is the Third Party Purchase Option?

In early December once the Register of Interest closes we will be issuing Apartment Contracts and Disclosure Documents for an off the plan sale to enable you to lock in your purchase. In addition we will have available our Third Party Purchase Options where you can lock in your purchase but have the option to transfer to a third party prior to settlement of your apartment without paying double stamp duty. For those who may wish to resell for a profit during construction this is a great way to go.      

Do I need a deposit to purchase an apartment?

Yes $1.00. No further deposit is needed as your investment in BayLife Capital Limited secures your deposit.

Do I get to see a full budget on the development?

Absolutely – the prospectus will contain a full development feasibility and valuation. All aspects of the BayLife proposal are transparent and you will see that you are getting real value for money. With BayLife where development profit margins are passed to the investor / apartment purchaser have to be ‘value for money’ if the cost of construction is at a low.  

What is the developer’s track record?

This is critical to investors and explained in detail on the BayLife web site as well as here. Timothy Wright is the lead proponent of the BayLife development and he has been very successful in a number of previous developments which have involved capital raisings with a prospectus combined with the development of property.

Recently the trustee John Knox wrote:

Statement of Track Record?

We are pleased to advise that we have acted as custodian on the following prospectuses in which Tim Wright has been involved –
Pinnacles Vista Limited, Laurel Park Vista Limited, Sanctuary Vista Limited, Dockside Venture Limited, Cascades Capital Limited and
currently Seascape Capital Limited developing Stage 1 Ramada Resort Hervey Bay. We are pleased to advise that all investors have
been paid their capital in interest in full and on time. We have found Tim Wright and his team both a pleasure to work with and highly
diligent and timely in all their dealings. Tim Wright is very astute, experienced and ‘hard nosed’ as to detail when it comes to property
development.  John Knox, Huntley Custodians 

When you say collective investment what do you mean – and is this risky?

The investors are pooling their money though the issue of Fixed Rate Development Preference Shares issued in a public company yet to be incorporated (to be called  BayLife Capital Limited). To enable this a Prospectus is issued to fully describe the offering.

When the Prospectus is subscribed to the required level and all preconditions met as will be explained latter, this money is released and lent to BayLife Pty Ltd the development company. This loan will be secured by mortgage with the appropriate company charges. Huntley Custodians as trustee holds the mortgage and company charges on behalf of the investors.

As to risk the Prospectus will detail the risks in full. All investments have risk. In assessing risk for the BayLife development both risk management and mitigation are vital and the following needs to be considered:

• No moneys are released from trust for the development of BayLife until the strict preconditions are met. In essence this assures that the building will commence construction and all the construction finance is approved.
• Once the building is commenced and a reputable and proven builder has signed a Guaranteed Maximum Price and Time Contract there is little risk the building will not be completed. The construction financier will assure that it is as the only way they are repaid is to complete the building.
• The BayLife building is a very simple building to build – flat level ground – slab on ground – no underground car park and only 3 storeys above the carpark.
• With the building complete titles will be issued. At settlement pre-agreement with the construction financier means that your investment has to be part of your apartments settlement.    
• Essentially the investor / apartment purchaser is in a preferential position as to payment to the construction financier. The investor will be secured through a mortgage held by a trustee and hence title to the apartment will not transfer unless the investor’s investment forms part of the apartment settlement.             

What are Development Preference Shares?

Development Preference Shares are Fixed Rate Redeemable Preference Shares and a particular class of share which are issued in accordance with the company’s constitution. This is much the same way that, for instance, ordinary shares are issued in a company including public listed companies that trade on the stock exchange.    

However with Fixed Rate Redeemable Preference Shares which we have named Development Preference Shares there is generally a fixed rate of return to them, which in this case is 6% per annum paid monthly and they have a defined date for redemption (repayment).

To summarise the company BayLife Capital Limited, an unlisted public company, will issue Development Preference Shares to raise capital on which will be paid a fixed rate and will be subject to a fixed time for repayment. In the case of BayLife this repayment will be when the development is complete and the apartment title is transferred to the apartment owner. The BayLife Capital Limited investment along with the apartments purchasers bank finance will be used to complete the apartment purchase.           

Do all 92 apartments have to be sold to get a start?

Our target is to sell all 92 apartments under the Property Maximiser® scheme. However the exact number of apartments required to be sold will be finalised with the construction financier and fully detailed in the Prospectus which you will receive in early December if you complete and submit a Register of Interest.    

Why issue a Prospectus?

As indicated above because BayLife Capital Limited is a public company issuing Development Preference Shares by way of a public offer, a Prospectus must be issued in accordance with the Corporations Act 2001. 

Tell me about BayLife Capital Limited and BayLife Pty Ltd – what else are they involved in?

The mechanics are as follows:

• BayLife Pty Ltd owns the BayLife land and will issue 92 apartment presales contracts.  

• BayLife Capital Limited issues a prospectus to raise capital. You have to be an apartment purchaser to subscribe for BayLife Capital Limited Development Preference Shares and the level of subscription is 20% of the apartment purchase price.

• BayLife lends this money to BayLife Pty Ltd. This money along with first mortgage construction finance will enable BayLife Pty Ltd to develop and build the 92 apartments. 

• During construction BayLife will pay 6% per annum paid monthly to the apartment purchaser.     

How do I invest into Development Preference Shares?

You cannot invest into Development Preference Shares until you receive the Prospectus and complete the Application Form in the Prospectus.

What is the minimum Development Preference Share subscription?

Your minimum subscription will be 20% of the purchase price of your apartment.

What else is BayLife Capital Limited and BayLife Pty Ltd involved in?

The companies are involved in no other projects or business of any kind and will not be involved in any other project or activity. They have been formed solely for the development of BayLife.

What is the responsibility of the Trustee?       

The trustee is yet to be formally appointed and will be prior to the issue of the Prospectus.

The primary responsibility of the Trustee is to hold, for the benefit of the Property Preference Shareholders, the right to enforce BayLife Pty Ltd obligation to pay interest on and repay the loan made by BayLife Capital Limited to BayLife Pty Ltd and the right to enforce Baylife Capital Limited’s obligation and to make a capital return of the Development Preference Shares. The Trustee holds the registered second mortgage and registered second company charge and administers the Trust Deed on behalf of the Development Preference Shareholders.

Is the land on which BayLife is to be constructed going to be mortgaged and how is my investment secured?

Yes, firstly the construction financier will hold a first registered mortgage for the construction funds. Secondly, the Trustee will hold a registered second mortgage on behalf of the investors. However, pursuant to a Priority Deed between the construction financier and the Trustee on behalf of the investors, it will be agreed that as each apartment settles by each apartment purchaser (who is also an investor) then the investors funds (equal to 20% of the apartment purchase price) shall form part of the apartment purchase price.    

Where does the money come from to pay my monthly interest and how secure is that?

Sufficient funds to pay the monthly interest will be in a set aside trust account to pay the monthly interest.

Does my investment have a maximum term?

Yes. As it is a loan from BayLife Capital Limited to BayLife Pty Ltd the loan needs to have a maximum term. As is will take approximately 12 months to build BayLife this maximum term is likely to be 18 months. This will be fully detailed in the Prospectus. 

What happens to money that I pay before Drawdown?

All moneys are invested into trust prior to Drawdown.

What are the preconditions for my investment to be drawn down and used to develop BayLife?

This will be fully documented in the Prospectus and is very important. Preconditions in brief include:

• A guaranteed maximum construction price and time contract
• All funding approved to ensure completion of construction and the project to be fully funded
• Development Approval in place
• Required unconditional presales
• Mortgages in place  

How will the project be managed? Are the directors experienced?

Timothy Wright and the directors are very experienced at development and construction. A complete management profile will be included in the information provided in early December. As well as Timothy Wright as chairman and executive director the board will also comprise non executive directors without a financial interest to ensure company compliance in all matters.

Importantly the building site will have an experienced project manager directly reportable to BayLife Pty Ltd. The project manager will closely monitor cost control, construction time and quality.        

Who guarantees the construction debt – is their any personal investor liability?

There is no investor liability whatsoever. As indicated the investors invest into BayLife Capital Limited who then lend those funds under mortgage to BayLife Pty Ltd the developer of the property.

The construction debt will be guaranteed personally by Timothy Wright so it is in his interest to ensure building completion and debt repayment.

Am I able to sell or transfer my Development Preference Shares?

You will be able to sell or transfer your Property Preference Shares, however, BayLife Capital Limited cannot do that for you. The Development Preference Shares in themselves are likely to be not liquid because it is unlikely there will be a secondary market.

However where you have elected a Third Party Option Contract you may resell your apartment prior to completion and transfer your shares however you must guarantee the performance of who ever you resell your apartment to.  

How is the building contract set up?

A very detailed and extensive GMP Construction Contract will be entered into by a known and reputable builder. This contract will contain retentions and performance bonds. It is also proposed that the contract will contain an escalating ‘re-establishment’ amount.

All drawdowns to pay the builder will need to be certified by an independent Quantity Surveyor appointed by the construction financier who undertakes site visits and ensures the work is done. A strict ‘cost to complete’ analysis is mandatory.    

What if the builder goes broke?

There will be an agreement between BayLife Pty Ltd, the construction financier and the builder that in the event the builder encounters financial difficulties that all sub contractors can be subrogated. In this case another builder can quickly step in and continue construction. Further it is proposed that a ‘Re-establishment Bond’ be put into place to cover the cost of re-establishment. The normal retentions will also be held.    

What happens at settlement?

When the building is complete the plan will be sealed by council and lodged for title issue. The apartment contract will stipulate that 14 days after title issue the apartment purchaser must complete the purchase. The settlement statement will stipulate that the balance required at settlement will be the purchase price of the apartment less the investment amount invested by the apartment purchaser / investor into BayLife Capital Limited.   

What if an apartment purchaser defaults and does not settle?

In the event of an apartment purchaser defaulting on their apartment purchase they will forfeit there investment in BayLife Capital Limited and trigger release of BayLife Capital Limited being required to repay their investment capital.