ISSUE DATE
17
ASIC disclosure principle 6 – Loan-to- valuation ratios The LVR is a measure of the amount of the loan provided to Borrowers against the latest valuation obtained in respect of the property. The LVR is an indicator of how conservative or aggressive a scheme’s lending practices are. Generally, the higher the LVR, the more vulnerable the Fund will be to a change in market conditions. The Fund will only hold loans where they are secured by a registered First Mortgage over real property. The maximum LVR for all loans is generally less than 70%, and capitalised interest and contingency amounts are factored into the loan amount. The maximum and weighted average LVRs for Fund loans as at 31 December 2025 are set out here.
Investment in other unlisted mortgage schemes There is currently no intention for the Fund to invest in other unlisted mortgage schemes. ASIC disclosure principle 4 – Related party transactions GPS has entered into a Services Agreement with GPSDF pursuant to which GPSDF provides GPS with services to run the Fund. Any fees payable under this agreement will be paid by GPS from its management fees and from application or other fees paid by Borrowers, meaning they are not an additional cost to Investors or paid from Fund assets. GPS and GPSDF are related parties. GPS considers the agreement to be on arm’s length terms and therefore Investor approval was not obtained, or required, for the agreement. The key risk with GPS and GPSDF being related parties is, because of their relationship, GPS may performance and compliance with its obligations under the agreement to the detriment of Investors. GPS has a process for managing
Item
Percentage
Maximum average LVR Weighted average LVR
The Fund lends for residential and non- residential construction and development projects. In providing loans for construction and development projects the Fund requires declarations of solvency by the builder with each progress draw and only advances moneys for works completed and approved by our Quantity to cover the cost to complete. The percentage of completion of each property under development, and the loan to cost ratio of each development loan, as at 31 December 2025 is set out on the following page. ASIC disclosure principle 7 – Distribution practices Where GPS determines there is an amount available for Distribution the Fund will pay a Distribution out of income received. Therefore, GPS intends to pay Distributions monthly, payments by Borrowers and any interest earned by the Fund’s cash holdings. In addition to income that GPS determines is distributable, the Constitution allows GPS to distribute any additional amount, including capital. However, GPS intends to pay Distributions from capital only where it expects to shortly receive income, being interest payments by Borrowers. For example, if interest has accrued to the Fund at the end of a Distribution Period
transactions, which ensures that all transactions
GPS does not lend to related parties of GPS nor to GPDF. ASIC disclosure principle 5 – Valuation policy An independent, expert valuation is obtained for each security property prior to settlement. Properties are valued on both an ‘as is’ and ‘as if complete’ basis. The GPS board relies on such valuations to form a view of the secured property supporting the loan. Investors may access the Fund’s valuation policy on our website or by contacting us on 1800 999 109. The majority of loans are for a period of 12 months or more duration. If a loan is renewed as a result of it exceeding its initial term, the loan will be reassessed as if it was a new loan, including obtaining an updated valuation of the secured property, if considered necessary. GPS also reserves the right to obtain future up-to- date valuations of the secured property at the Borrower’s expense.
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