Ray White Group Members

FREQUENTLY ASKED QUESTIONS OF RAY WHITE INVEST FROM RAY WHITE REAL ESTATE GROUP MEMBERS

Q. Who is RWI?

A. RWI is a private property investment group that forms part of the Ray White Group. RWI invests in real estate by providing capital to property developers to undertake projects, and by directly acquiring real estate that offers strong income and capital growth prospects. Our investment philosophy is one of patient investment in high quality property.

For our investor partners, we offer property investments exhibiting a range of return and risk profiles. Investors are able to select investments on a case by case basis, according to their individual investment objectives.

Q. What kind of deals does RWI invest in?

A. RWI invests in a broad range of projects in a range of capacities. As a guide, our investment parameters can be summarized as follows:

• Commercial, residential, industrial and retail assets;
• Project size between $3 - $50 million;
• Our investment capacity is between $0.5 - $20+ million in any one project;
• We can invest in an equity or mezzanine capacity (or a hybrid);
• We also arrange senior debt funding - we can therefore arrange a complete funding package for your client's projects;
• We fund development projects and we acquire passive investment assets; and
• We have invested in Queensland, Victoria and New South Wales.

A. RWI has invested in projects valued in excess of $350 million since 2001. We are active investors in quality projects that are backed quality sponsors.

Q. How does RWI raise its funds?

A. RWI sources its capital from an established investor client base. We have established a close relationship with our investors which enables us to respond quickly to investment opportunities. You might be aware that several RWRE group members are investors in our products.

A. The White Family or entities associated with the White Family co-invest in all projects.

Q. What rewards does RWI give me for referrals?

A. RWI provides financial incentives to referring RWRE group members to reward them for the real value that they have added to our business. We enjoy paying these referral fees because our relationship with RWRE is critical to our business. As a guide, RWI pays RWRE group members:

• A percentage of the capital amount invested by a person referred to us by a Ray White group member. The percentage paid depends upon the particular investment undertaken, but is usually between 1% to 2% of the amount invested. The precise percentage is agreed and notified to the investor prior to acceptance of any application form; and
• We have also paid a share of our finance establishment fees on occasions where the RWRE group member has added outstanding value through packaging the project, the development and/or referral of investors.
  You should refer to the Guidelines for Referrals contained on our website which requires you to specifically disclose to your client that fact that you will receive financial reward for a successful introduction to RWI. Failure to disclose this may contravene recently amended financial services regulations.

Q. How else does my connection with RWI benefit my business?

A. RWRE group members have found that referrals to RWI have provided them with a point of difference and have strengthened their client relationships and positioned them well for future sales, leasing and property management opportunities. You might see our business as a further strength of Ray White and a means by which you can add value to your clients businesses where other agents cannot.

Q. What should I do if I want to refer a developer client or a potential investor or a specific project to RWI?

A. You should call RWI in Sydney or in Brisbane using the contact details on our website.  If you are seeking to refer a potential investor, you should also review the Guidelines for Referrals contained on our website to ensure that your discussions with your client do not contravene the recently revised financial services regulations (when you call RWI we can guide you through these issues).

Q. What sort of investor partners does RWI seek to co-invest with?

A. We seek to co-invest with investor partners that are typically experienced property investors who understand the fundamentals and risk profile of equity and mezzanine property investments. Many of our co-investment partners are part of, or have been referred to us by, Ray White group members.

Q. How do we undertake investments?

A. At present, all of our investments are transaction specific. That is, each investment is a stand-alone investment, isolated from all other investments undertaken.  We issue an offering document for each particular investment, summarizing the particular investment. Investors seeking to invest in such an investment are required to read the offering document and complete the application form contained therein.  Investors can register with RWI to receive offering documents as they are issued.