Offers of Unlisted Interests in Commercial Properties – A Review

TABLE OF CONTENTS

1. INTRODUCTION
   Methodology of Review
2. THE NATURE OF COMMERCIAL PROPERTY INVESTMENT
   What is the "return" to investors in this typical case?
   Risk factors and assumptions affecting returns
3. APPLICATION OF SECURITIES LAW
   The investment statement
   The prospectus
   Advertisements
   Returns
4. SURVEY RESULTS AND OUR COMMENT
   Returns
   Return type A - Interest rate on the bonds
   Return type B -Combined rate of return on bonds and shares
   Return type C - Dollar value of cash distributions
   Return type D - Interest on the bonds plus change in net tangible assets
   Return type E - Internal rate of return of the project
   Return type F - Rental yield from the properties
   Alternative returns-related terminology
   Qualifications to the stated returns
   Assumptions
   The Prospectus
   The Investment Statement
   Advertisements
   Disclosure of Risks
   Disclosures in the Investment Statement
   Disclosure of Charges
5. CONCLUSION

   APPENDIX 1