Arena Property Housing Bond Series 1 Government Backed Residential Investment Property Opportunity

Transcription

1 Arena Property Housing Bond Series 1 Government Backed Residential Investment Property Opportunity A Unique Investment for Pensions and Income Seeking Investors INCOME OPTION 10 YEAR TERM AT 4% PER ANNUM FIXED RETURNS PAID ANNUALLY 25% SHARE OF CAPITAL GROWTH 1ST LEGAL CHARGE OVER ASSETS GROWTH OPTION 10 YEAR TERM AT 5% PER ANNUM FIXED RETURNS PAID ON MATURITY 25% SHARE OF CAPITAL GROWTH 1ST LEGAL CHARGE OVER ASSETS

2 PARTNERS Dublin City Council Tipperary County Council Fingal County Council Waterford City and County Council South Dublin County Council Galway City Council Dun Laoghaire Rathdown County Council Galway County Council Kildare County Council Leitrim County Council Carlow County Council Mayo County Council Kilkenny County Council Roscommon County Council Laois County Council Sligo County Council Longford County Council Cavan County Council Louth County Council Donegal County Council Meath County Council Monaghan County Council Offaly County Council Clark Hill Solicitors Westmeath County Council Churchfield Home Services Wexford County Council Peter McVerry Trust Wicklow County Council Focus Ireland Clare County Council Túath Housing Cork City Council Locktons Insurance Cork County Council SM Building Consultancy Kerry County Council Madden Property Consultants Limerick City and County Council

3 CONTENTS 1.0 INTRODUCTION THE DEMAND FOR SOCIAL HOUSING IN IRELAND INVESTMENT KEY FEATURES INVESTMENT OVERVIEW AND MANAGEMENT SAMPLE PROPERTIES FAQS & PROCESS APPLICATION FORMS 2 SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY 3

4 1.0 INTRODUCTION THE DEMAND FOR SOCIAL HOUSING IN IRELAND As of the end of October 2018 there were nearly 10,000 people homeless which represents an increase of more than 2,000 over The number of families experiencing homelessness in Ireland was approximately 1,700 and the number of children homeless was 3,725. Combine this figure with a surging population which grew by over 60,000 in 2018 and the social housing crisis is set to get worse before it gets better. GOVERNMENT ACTION PLAN As Part of the Governments action plan to help solve the crisis, the Government is offering to lease 10,000 residential properties from private investors over the next 3 years, offering year leases under the Long Term Leasing Scheme. OUR STRATEGY TOGETHER WE ARE STRONGER Our strategy is to combine the needs of pension investors with the needs of those most vulnerable in society through partnerships with Local Government and Approved Housing Bodies. Together we can deliver a plentiful supply of high standard energy efficient social housing units whilst at the same time providing a healthy investment return to facilitate the needs of pension investors. HIDDEN HOMELESSNESS: THIS FAMILY IS LIVING IN A CONVERTED WORKSHED IN A DUBLIN BACK GARDEN HE S WORKED IN construction for more than 20 years and Keith is clearly proud of his handy-work as he shows TheJournal.ie around the home he s built for his family in the back garden of his parents house in south-west Dublin. It s warm, cosy and ingeniously designed there s even a tiny attic, and shelving to store everything from winter clothes to nappies and toys. The 43-year-old isn t sure the converted workshed quite qualifies as a home, though at least, not a home suitable for a large family. I know we re not exactly homeless, he says, but in my eyes we had a home at one time. Keith, his wife Sinead (we ve changed the names at their request) and their seven children are living between the converted shed and the big house as they call it. The four boys, the youngest kids, sleep out the back. The older ones are in the house, with Keith s parents. It s by no means an ideal stateof-affairs but their situation underscores an aspect of the housing and homelessness crisis you ll only hear about intermittently in the headlines. PUBLIC PENSIONS FACING WORST RETURNS SINCE RECESSION Public pension plans are reporting dismal investment returns this year, a development that will likely mean governments will have to pony up more money in the coming years. So far, no major pension plan has reported a preliminary annual investment return of more than 1.5 percent. That s thanks to a volatile stock market that s seen wild swings spurred mainly by political and economic events abroad. Some smaller plans, such as the New Mexico Educational Retirement Board, have reported earnings as high as 2.6 percent. Still for many, this year marked their worst earnings year since the Great Recession. WELFARE MINISTER IS UNDER NEW PRESSURE TO FIX PENSIONS SHORTFALL It could take 40 years to provide enough homes for people on Dublin s housing list A NEW REPORT on the housing crisis by independent think tank Tasc has predicted that the housing crisis is set to worsen in Ireland. At the current rate of house building, it says, it could take over 40 years to provide permanent homes for the people currently on Dublin city s housing waiting list. The slim earnings for fiscal 2016, which ended June 30 for most plans, is well below the average earnings target of about 7.5 percent. It also marks the second year in a row that plans have missed the assumed rate of return: Most reported an investment gain between 2 percent and 4 percent in fiscal Social Protection Minister Regina Doherty will come under renewed pressure to bring forward a speedy remedy for pensioners who are on reduced payments because they took time out of the workforce. The issue already affects 35,000 people, mainly women who took time out of the workplace to rear their families. Some of them receive as much Hidden homelessness is a growing problem, according to charities working in the area. CSO figures based on last year s Census detailed a rise in overcrowding in Irish households: almost 10% of the population is now in homes with more people than rooms. Families in such situations are often missing from the debate, according to children s charity Barnardos. as 1,500 per year less in pensions. But Fianna Fáil s welfare spokesman Willie O Dea has said the numbers involved were continuing to grow and that some pensioners were dying without receiving a timely remedy. We are dealing with pensioners here, he said. The report urges a radical change in approach from the government, and says that its Rebuilding Ireland plan is only making the housing crisis worse. This plan, unveiled almost a year ago, promised to deliver across five pillars that included addressing homelessness, accelerating social housing, building more homes, improving 4 SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY

5 2.0 INVESTMENT KEY FEATURES SUMMARY Arena Capital Partners Limited through it s affiliate Arena Property Acquisitions Ltd (Arena) are currently raising finance to purchase properties by way of a loan note. Investors will have the first legal charge on the properties. All properties will be leased on long term government leases to Local Authorities with no rental voids, internal maintenance or refurbishment responsibilities, as these are dealt with by the local authority. Any reference to Arena Capital in this document includes its affiliate Arena Property Acquisitions Ltd and its subsidiaries. KEY FEATURES 10 year term Loan Note 4% Income Option, paid annually on December 1st 5% Growth Option, paid on maturity 25% participation in any capital growth on disposal or refinance of the assets Original investment returned on disposal or refinance of the assets 1st charge over the assets Interest accrues from the date of receipt of funds by Arena ASSET KEY FEATURES PRIVATE LANDLORD SOCIAL HOUSING NO Letting Fees NO Repairs NO RTB NO Maintenance NO Voids NO Arrears NO Downtime NO Advertising 10 Year lease NO Refurb SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY 5

6 3.0 INVESTMENT OVERVIEW AND MANAGEMENT Arena propose to raise finance for the acquisition of residential properties to be let on long term Government backed leases with Local Authorities in major cities across Ireland. With a focus on high quality, fully developed properties in high demand to tenants, owner occupiers and investors. The management team at Arena have an abundance of experience in the areas of Finance, Property, Renewable Energy and Asset Management and with approximately 500 Million of assets under management demonstrating they are accustomed to managing their client s assets. THE INVESTMENT The investment is by way of a Loan Note of up to 5 million through Arena to a SPV (Special Purpose Vehicle) which is a private limited company registered in Ireland. The SPV will hold all properties in the Arena Housing Bond Series 1. The Loan Note Holders will have full security over the assets by way of a first legal charge. The term of the investment is 10 years and the returns are 4% per annum (Income Option) or 5% per annum (Growth Option), see below for more details. INCOME OPTION For regular income seeking investors income is paid annually at a return of 4% gross. Interest is accrued daily from the date of receipt of funds and paid on the 1st of December of each year. The original capital investment becomes due on the 10th anniversary of the date the Bond closes. However Arena has another 6 months to repay the capital investment, giving sufficient amount of time to sell the underlying property assets. For corporate or private investors any gains are treated as income tax and returns are paid net of withholding tax which is currently 20%. Pension investors returns are paid without any withholding tax to their respective pension vehicle, subject to Revenue rules. GROWTH OPTION For those seeking higher returns the Growth Option pays interest of 5% gross on maturity. Interest is accrued daily from the date of receipt of funds. The original capital investment is returned on maturity, (along with any accrued interest) which is the 10th anniversary of the date of receipt of funds. However Arena has another 6 months to repay the capital investment, giving sufficient amount of time to sell the underlying property assets. For corporate or private investors any gains are treated as income tax and returns are paid net of withholding tax which is currently 20%. Pension investors returns are paid without any withholding tax to their respective pension vehicle, subject to Revenue rules. 6 SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY

7 3.0 INVESTMENT OVERVIEW AND MANAGEMENT SAMPLE RETURN Sample return on both Income and Growth options. Assumes 5% per annum straight line capital appreciation per year, paid in the final year. Note: There is no guarantee that property prices will continue to increase in future years, any future decrease in property prices could result in a lower amount being returned to investors at maturity. 200,000 SAMPLE RETURN ON INCOME OPTION 152,500* 150, , , , , , , , , , ,000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year ,000 SAMPLE RETURN ON GROWTH OPTION 162,500* 150, , , , , , , , , , ,000 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 * Due to the time involved in selling the assets Arena anticipate the capital being returned to investors within six months of the maturity date. In exceptional circumstances the timeline can be extended. See FAQs.!! W A R N I N G W A R N I N G If you invest in this Product you may lose some or all of the money you invest. Investors should not invest in this Product without having sufficient knowledge, experience, a detailed understanding of the risks involved and professional advice from your Financial Adviser. SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY 7

8 4.0 SAMPLE PROPERTIES THE OGHAM, ROCHESTOWN AVENUE, DUN LAOGHAIRE One Bed Cost 265,311 NET YIELD ON PURCHASE OF 5.6%, RENT REVIEW RPI HAZELBURY GREEN, CLONEE, DUBLIN 15 Three Bed House, cost 337,080 NET YIELD ON PURCHASE OF 5.1%, RENT REVIEW RPI CASTLEGRANGE PARK, CASTAHEANY, DUBLIN 15 Three Bed Duplex 325,264 NET YIELD ON PURCHASE OF 5.5%, RENT REVIEW RPI TYRCONNELL GROVE, INCHICORE, DUBLIN 08 Two Bed Aptartment, cost 311,876 NET YIELD ON PURCHASE OF 5.7%, RENT REVIEW CPI Please contact our team on or for further information BOROIMHE BEECH, SWORDS, CO DUBLIN Two Bed Apartment Cost 281,154 NET YIELD ON PURCHASE OF 5.6%, RENT REVIEW RPI 8 SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY

9 5.0 FAQS & PROCESS 1. WHO IS THIS INVESTMENT SUITABLE FOR? This investment is suitable for investors who require a fixed income stream exceeding deposit levels but without taking on the risk of equities. 2. WHO SHOULD INVEST? Pension investors, retiring investors, direct cash including retirement lump sum or tax free lump sum. Investors requiring a regular income, institutional investors and pension funds. Examples of structures that can invest include, SIPPs, SSAPs, PRSA, PRB, ARF, AMRF and SAPRB. 3. HOW DOES THE INVESTMENT WORK? Investment is by way of a Loan Note to Arena Property Acquisitions Ltd t/a Arena Property, funds are then issued to a Special Purpose Vehicle (SPV) owned by Arena Property which will use these funds to acquire residential housing assets which will be leased to local authorities and/or AHBs (Authorised Housing Bodies). The rental returns depending on your investment selection will pay a fixed rate of return over the term. Loan Note Holders will also have a 25% share in any capital growth of the properties. 4. HOW IS THE COUPON PAID? INCOME OPTION: The interest payment is paid annually on a pro rata simple interest basis on the 1st December each year. This payment would be made directly to the investor s pension bank account or nominated account for non-pension investors. GROWTH OPTION: The interest is paid on maturity of the loan note, or on the date of early redemption. 5. DO I HAVE A TAX LIABILITY? Investors are responsible for obtaining their own independent tax advice. Arena Property s understanding of the relevant applicable taxes is that pension investors are exempt from tax on the Interest Income earned on an annual basis (subject to Revenue rules and approval). Non-pension investors are subject to standard income tax. Arena Property will deduct withholding tax, currently at 20%, if applicable and pay to the Revenue Commissioners on behalf of the investor and will be held with the Revenue offset against any tax liability the investor may have. It is advised to seek independent tax advice for this investment and Arena Property cannot be held responsible for any errors or omissions in the above information. 6. WHAT IS THE TERM OF THE INVESTMENT? The investment term is for 10 years. This is the length of the lease agreed with the Local Authorities. Due to the nature of this investment, early exits will only be available if your investment can be replaced, like for like, if liquidity is available or if an asset can be sold to return your funds, all of which are at the discretion of the Directors of the SPV holding the assets. Arena Property will enter into negotiations to ensure that the asset sale is complete on maturity of the Loan Notes, no less than 6 months prior to the maturity of the Bond, however in the event that no buyer or refinance is available within 6 months of maturity then Arena Property will extend the Bond until such time that a sale or refinance can be facilitated to redeem all Loan Note Holders original Investment. In this event Loan Note Holders will continue to earn a coupon in line with their original investment choice. 7. IS THERE A BANK DEBT OR GEARING INVOLVED? No, Arena Property does not use bank finance to fund projects. Only investor funds are used. 8. HOW DOES ARENA PROPERTY SELECT PROPERTIES FOR THE BOND? Arena Property invests in projects which broadly meet the following criteria: 1) Secure clean title. 2) Net rental yield of greater than 5% 3) Located within regions of prospect for strong capital growth. 4) A demonstrable capacity to pay. 5) Minimal refurbishment required on all properties. 6) Local Authority/AHB pre-approval. 7) Average value of between (but not limited to) 180, , WHO IS RESPONSIBLE FOR THE MAINTENANCE OF THE PROPERTIES The Local Authority/AHB take responsibility to manage the tenancy, to manage and maintain the property including annual boiler maintenance and general maintenance e.g. grass cutting, the properties will be returned to Arena Property on maturity of the lease in good condition, allowing for normal wear and tear. 10. DO THESE PROPERTIES HAVE TO REGISTER WITH THE RTB (RESIDENTIAL TENANCY BOARD) No, because the properties are being leased by local authorities. 11. ARE THESE PROPERTIES SUBJECT TO RENT PRESSURE ZONE (RPZ) No, under the long-term lease agreement rent reviews they are not subject to the RPZ Maximum Permitted Increase (4% p/a). SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY 9

10 5.0 FAQS & PROCESS 12. WHAT HAPPENS IF A TENANT VACATES THE PROPERTY? The lease is with the Local Authority or AHB therefore if a tenant vacates the property and there is a period of unoccupancy, Arena Property still receives the rent agreed. There are no rental voids throughout the term of the lease. 13. WHAT HAPPENS IN THE EVENT OF A DEATH OF AN INVESTOR? In the event of death of a pension investor, Arena Property will follow the Pensions Act and Revenue requirements at that point in time. Arena Property intends to be as accommodating with the estate of the deceased s investor as possible. For nonpension investors, in the event of death, the investment will continue as per the original agreement. The investment will be treated in accordance with the usual probate rules. Early exits may be possible but are at the discretion of Arena Property although it would be the intention as far as is possible to support the executor or administrator with this matter. In both cases, Arena Property recognise that the full value of the loan remains in place and transfers to the estate of the deceased, however if assets are required to be sold to meet the deceased s return of investment this will be subject to liquidity in the fund, property values and market conditions at the time of sale. Any forced sale may result in a loss to some or all of the investment. 14. WHAT HAPPENS IF A PROJECT UNDERPERFORMS? During the appraisal and due diligence process, we engage qualified and experienced third parties to appraise each property acquisition. Through this process we gather data to help build projections for each property acquisition. This gives Arena Property a clear projection on income going forward for the full term of the lease with the Local Authority, which de-risks the project from the outset. If properties reduce in value at the end of the 10 year term, the investor may receive less than originally invested. 15. CAN I RETIRE IF MY PENSION IS INVESTED IN ARENA PROPERTY LIMITED? Yes Arena Property Limited will facilitate a swap/in specie transfer from being a pension investor to a retiree during the investment term, where possible we will also facilitate a change from the Growth investment to an Income Investment in order to meet ARF/AMRF imputed distribution requirements. 16. HOW DO I GET MY ORIGINAL CAPITAL BACK? There are a number of different ways in which Arena Property intends to fund the investors exit at the end of the term of the Loan Note. The properties are projected to generate returns in excess of the cost of capital which creates a residual cash position year on year. In addition to this, the value of the assets are expected to increase based on past performance and the Local Authority has first refusal to purchase the properties at market value at the end of the leases. This increased equity position and strong revenue stream creates a saleable asset and Arena Property in the future will be in a position to dispose of the assets providing the necessary funds needed to repay the investor. In addition to the disposal of the assets, Arena Property could seek to refinance the portfolio. The value of the assets and the strong revenue yields make the portfolio a bankable asset. Arena Property could then repay the investors loans and hold or dispose of the assets. It is projected that a mix of the above options will be used to repay the capital loaned via the Loan Notes. Arena Property will enter into negotiations to ensure that the asset sale is complete on maturity of the Loan Notes, no less than 6 months prior to the maturity of the Bond, however in the event that no buyer or refinance is available within 6 months of maturity then Arena Property will extend the Bond until such time that a sale or refinance can be facilitated to redeem all Loan Note Holders original Investment. In this event Loan Note Holders will continue to earn a coupon in line with their original investment choice. 17. WHEN DOES MY INVESTMENT BEGIN TO EARN INCOME? When a completed application (i.e. fully completed application form, cleared funds and relevant anti -money laundering documentation) is received by Arena Property, which must be before the Closing Date (otherwise the application form may not be accepted). It is the responsibility of the Financial Adviser to ensure the client s application form and funds are in place by the dates specified. 18. IS MY MONEY GUARANTEED? No. Property prices may decrease which could result in a lower investment amount being returned to investors. However Arena Property appraises all potential acquisitions to ensure the company maximises its contractual ability to repay the investor funds. 19. WHERE CAN I FIND FULL DETAILS OF INVESTMENT SO AS TO ENABLE ME TO MAKE A DECISION TO INVEST? Please see the Investment Memorandum and Loan Note Instruments pertaining to this investment. 20. CAN ARENA PAY THE LOAN NOTE EARLY? Yes. Arena can pay the Loan Note early in the event of a refinance or on the sale of the properties. All investors will receive a pro-rata coupon if applicable. 10 SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY

11 6.0 APPLICATION FORMS PRIVATE INVESTOR APPLICATION FORM ARENA PROPERTY HOUSING BOND SERIES I First Applicant Second Applicant Name: Address: Date of Birth: Nationality: PPSN/Tax No.: Amount to be invested: EURO Cheques payable to: Arena Capital Partners Limited. Please tick ONE box: INCOME (4% per annum. Interest is paid annually on December 1st) GROWTH (5% per annum and paid on maturity together with the initial investment) Client Declaration & Acceptance I understand that I will be subscribing to loan notes issued by Arena Capital Partners Ltd, the terms of which will be governed by my loan note instrument. I confirm that I have reviewed the Loan Note document in detail, as well as the information memorandum and brochure prepared by Arena Capital Partners Ltd in relation to the investment opportunity. I accept all the terms and conditions detailed in these documents. I acknowledge that I have been advised to take independent tax, legal, pension, investment and financial advice in relation to the suitability of this investment, and risks associated with it, to my personal circumstances and risk profile. I have been advised to request any additional information from Arena Capital Partners Ltd and any associated companies to determine the suitability of the transaction to my personal circumstances and risk profile. I confirm that under no circumstances whatsoever shall I be entitled to hold Arena Capital Partners Limited (or any of their respective directors, employees or agents) liable for any default, act or omission for any failure or loss associated with this investment (save as may be provided for under the relevant transaction document). Client Signatures: Date: / / Date: / / Section A: Source of Funds This section must be completed if payment is NOT a cheque drawn on the account of the investor(s): (Please state the payment method) A Bank Draft C Bank transfer B Cheque D Other: (Please specify) Please provide the following additional information detailing the ultimate source of the payment, (e.g. details of account from which funds are sourced.) Account Holder(s): Bank Account No.:_ Sort Code: Section B: Source of Wealth Bank Name: How have the funds to pay for the investment been accumulated? Employment/Self Employment Income Inheritance or Gift Sale of Property Investment Income (e.g. rent, dividends) Matured Investment or Gift Other _ Other Please Specify Advisers / Agent Declaration I declare that I have met the above-named applicant and I have explained the Arena Property Housing Bond Series 1 and the nature of this investment to them and I am satisfied that it is suitable for their needs and risk profile. I can confirm that the applicant named above has been issued with a copy of the Information Memorandum and the Loan Note Instrument and particular attention has been drawn to the risk factors contained therein. I confirm that we have fully complied with the Anti-Money Laundering Regulations and all associated legislation. Financial Adviser Name (in capital letters) Financial Adviser Company Name: Address: Financial Adviser Signature: Date: / / Phone: SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY 11

12 6.0 APPLICATION FORMS Arena Capital Partners Ltd Pension Application Form Pension / Investment Fund Transfer When you are transferring from an existing pension or Investment you should consult your financial adviser to satisfy yourself in relation to any transfer penalties, or loss of entitlement of other benefits which may occur. You should ensure that any risk benefits (life cover, disability cover, waiver of contribution) which may be lost as a result of a transfer are replaced to your satisfaction prior to affecting any transfer. Data Protection / Money Laundering Arena Capital Partners Limited is required under Data Protection Acts 1988 & 2003 to notify applicants that data provided may be processed using computer systems or otherwise in assessing this application and in effecting the ongoing management of this offer. Data will not be used for the purposes other than those above and will be retained only for as long as necessary. By signing this application form applicants consent to this processing. Arena Capital Partners Limited may be obliged to disclose personal information relating to you to third parties, for example, in order to comply with a legal or regulatory requirement; or a legal process; or to assert or defend the rights of property of Arena Capital Partners Ltd (or a related party). Other than as provided above, no personal data provided will be put to any use other than that for which it is provided, or disclosed to any third party, without prior written consent. For the purpose of complying with the provisions of the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010, and any other recommendation issued by a competent regulatory authority, Arena Capital Partners Limited is required to establish the identity of applicants. If Anti- Money Laundering documentation (certified copy of ID photographic evidence, certified Proof of Address (X2 for ARF s & AMRF s) within the last three months, certified evidence of PPS Number) is not provided the application will be rejected and returned to the applicant. Warning: The provision of this product does not require licensing, authorization or registration with the Central Bank of Ireland and as a result is not covered by the Central Banks requirements designed to protect consumers or by a statutory compensation scheme. There is no guarantee that the performance of the property portfolio will generate a positive return and your capital is at risk. Any decision for you to invest should be based on your assessment of the Information Memorandum and the Loan Note Instrument having taken appropriate advice. The brochure and application form does not provide sufficient information on the terms of loan notes so as to enable an investor to purchase or subscribe or apply to purchase or subscribe for loan notes. PROCEDURES FOR APPLICATION Participants should complete the Application Form overleaf and submit the documents to Arena Capital Partners Limited, Suite 107, Dublin Airport Business Park, Swords Road, Santry, Dublin 9 or in the case of Pension Investments send directly to the appointed Pension Trustee. Arena Capital Partners Ltd reserves the right to close the application list at any time or if fully subscribed and to reject any application in whole or in part at its absolute discretion (without obligation to give reasons therefore). Applications to participate in this investment opportunity will be considered only on the terms and conditions as described herein and in the transaction documents and subject to you following the correct application procedure. Any attempt by an intending investor purporting to amend or exclude or partly exclude the application of any term or condition of the transaction documents shall be void. Arena Capital Partners Limited shall have no liability whatsoever to any applicant for interest or any resulting loss or damage in the event that their application to participate in the investment is refused in full or in part. In order to ensure compliance with the provisions of the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010, Arena Capital Partners Ltd is required to establish the identity of each applicant to satisfy anti-money laundering requirements. Application forms must therefore be accompanied by: i. A certified copy* of either the applicant s current passport or current driver s licence; ii. An original or certified copy* of proof of address x 1 (for ARF/AMRF x 2). Acceptable forms of proof of address are: Recent utility bill (electricity, gas); Bank statement iii. Proof of PPSN issued either by the Dept. of Social Protection or by the Revenue Commissioners Proof of address cannot be more than 3 months old and must bear the name and address provided on the application form. For further clarity please refer to the AML guidelines provided by Arena Capital Partners Ltd. *Certified copy means a document which contains a certification signed, stamped and dated by a solicitor, Commissioner for Oaths, Garda, Accountant, Bank Manager or Financial Advisor certifying that the copy document is a true copy of the original. Please complete BOTH sections A & B and sign the declaration. This is to comply with the requirements of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, you are required to provide information to confirm the source of funds and source of wealth in respect of the amount you are saving/investing. Please note that the interest payments are calculated on a daily basis on simple interest from the date of cleared funds being received into Arena Capital Partners Limited bank account. Bank details below for Electronic Funds Transfers (EFTs) which must be confirmed by a Director of Arena Capital Partners by contacting us on prior to transferring funds. Arena Capital Partners Ltd will not take responsibility for any form of cyber fraud related to the transferring of funds. Bank of Ireland, Collinstown Cross, Co Dublin, IBAN: IE23 BOFI BIC: BOFIIE2D sort code account number Arena Capital Partners Ltd take no responsibility for any errors or omissions in the producing this document. Warning: The value of your investment may go down as well as up. Warning: Past Performance is not a reliable guide to future performance. Warning: If you invest in these funds you may lose some or all of the money you invest. 12 SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY

13 6.0 APPLICATION FORMS PENSION APPLICATION FORM ARENA PROPERTY HOUSING BOND SERIES I Trustee/QFM/PRSA Provider: Name: Address: Pension Trustee/QFM/PRSA Provider Signature: FOR SSAP s ONLY: Clients/SSAP Scheme Member Signature: Trustee Ref: Amount to be invested: EUR Date: / / Date: / / Please tick ONE box: INCOME (4% per annum, Interest is paid annually on December 1 st ) OR GROWTH (5% per annum paid on maturity together with the initial investment) Client Declaration & Acceptance I understand and accept that my contract with Arena Capital Partners Limited will be based on the declaration and acceptance in this application. I confirm that I have reviewed in detail the Arena Capital Partners Limited Information Memorandum, Loan Note Instrument and Brochure and accept all the terms and conditions detailed in these documents. I acknowledge that I have been advised to take independent tax, legal, pension, investment and financial advice in relation to the suitability of the offer and risks associated with it. I confirm that under no circumstances whatsoever shall I be entitled to hold Arena Capital Partners Limited, the Directors or its associated companies liable for any default act or omission for any failure or loss within the company. By signing hereunder, I am agreeing to the Loan Note Instrument in respect of the amount submitted by me and I hereby authorise my appointed Pension Trustee to execute the said Loan Note Instrument on my behalf. Client/beneficial owner details: Name: DOB: PPS No: Address: Client Signature: Date: / / Advisers / Agent Declaration I declare that I have met the above named applicant and I have explained the Arena Property Housing Bond Series 1 and the nature of this investment to them and I am satisfied that it is suitable for their needs and risk profile. I can confirm that the applicant named above has been issued with a copy of the Information Memorandum and Loan Note Instrument and particular attention has been drawn to the risk factors contained therein. I confirm that we have fully complied with the provisions of the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010, as amended by Part 2 of the Criminal Justice Act 2013 (the Act ). Financial Adviser Name (in capital letters) Financial Adviser Company Name: Financial Adviser Signature: Date: / / Phone: Address: SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY 13

14 6.0 APPLICATION FORMS Arena Capital Partners Ltd Pension Application Form Pension / Investment Fund Transfer When you are transferring from an existing pension or Investment you should consult your financial adviser to satisfy yourself in relation to any transfer penalties, or loss of entitlement of other benefits which may occur. You should ensure that any risk benefits (life cover, disability cover, waiver of contribution) which may be lost as a result of a transfer are replaced to your satisfaction prior to affecting any transfer. Data Protection / Money Laundering Arena Capital Partners Limited is required under Data Protection Acts 1988 & 2003 to notify applicants that data provided may be processed using computer systems or otherwise in assessing this application and in effecting the ongoing management of this offer. Data will not be used for the purposes other than those above and will be retained only for as long as necessary. By signing this application form applicants consent to this processing. Arena Capital Partners Limited may be obliged to disclose personal information relating to you to third parties, for example, in order to comply with a legal or regulatory requirement; or a legal process; or to assert or defend the rights of property of Arena Capital Partners Ltd (or a related party). Other than as provided above, no personal data provided will be put to any use other than that for which it is provided, or disclosed to any third party, without prior written consent. For the purpose of complying with the provisions of the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010, and any other recommendation issued by a competent regulatory authority, Arena Capital Partners Limited is required to establish the identity of applicants. If Anti Money Laundering documentation (certified copy of ID photographic evidence, certified Proof of Address (X2 for ARF s & AMRF s) within the last three months, certified evidence of PPS Number) is not provided the application will be rejected and returned to the applicant. Warning: The provision of this product does not require licensing, authorization or registration with the Central Bank of Ireland and as a result is not covered by the Central Banks requirements designed to protect consumers or by a statutory compensation scheme. There is no guarantee that the performance of the property portfolio will generate a positive return and your capital is at risk. Any decision for you to invest should be based on your assessment of the Information Memorandum and the Loan Note Instrument having taken appropriate advice. The brochure and application form does not provide sufficient information on the terms of loan notes so as to enable an investor to purchase or subscribe or apply to purchase or subscribe for loan notes. PROCEDURES FOR APPLICATION Participants should complete the Application Form overleaf and submit the documents to Arena Capital Partners Limited, Suite 107, Dublin Airport Business Park, Swords Road, Santry, Dublin 9 or in the case of Pension Investments send directly to the appointed Pension Trustee. Arena Capital Partners Ltd reserves the right to close the application list at any time or if fully subscribed and to reject any application in whole or in part at its absolute discretion (without obligation to give reasons therefore). Applications to participate in this investment opportunity will be considered only on the terms and conditions as described herein and in the transaction documents and subject to you following the correct application procedure. Any attempt by an intending investor purporting to amend or exclude or partly exclude the application of any term or condition of the transaction documents shall be void. Arena Capital Partners Limited shall have no liability whatsoever to any applicant for interest or any resulting loss or damage in the event that their application to participate in the investment is refused in full or in part. In order to ensure compliance with the provisions of the Criminal Justice (Money Laundering & Terrorist Financing) Act 2010, Arena Capital Partners Ltd is required to establish the identity of each applicant to satisfy anti-money laundering requirements. Application forms must therefore be accompanied by: i. A certified copy* of either the applicant s current passport or current driver s licence; ii. An original or certified copy* of proof of address x 1 (for ARF/AMRF x 2). Acceptable forms of proof of address are: Recent utility bill (electricity, gas); Bank statement iii. Proof of PPSN issued either by the Dept. of Social Protection or by the Revenue Commissioners Proof of address cannot be more than 3 months old and must bear the name and address provided on the application form. For further clarity please refer to the AML guidelines provided by Arena Capital Partners Ltd. *Certified copy means a document which contains a certification signed, stamped and dated by a solicitor, Commissioner for Oaths, Garda, Accountant, Bank Manager or Financial Advisor certifying that the copy document is a true copy of the original. Please complete all sections of the Application Form and sign the declaration. This is to comply with the requirements of the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010, you are required to provide information to confirm the source of funds and source of wealth in respect of the amount you are saving/investing. Please note that the interest payments are calculated on a daily basis on simple interest from the date of cleared funds being received into Arena Capital Partners Limited bank account. Bank details for Electronic Funds Transfers (EFTs) are as follows: Bank of Ireland, Collinstown Cross, Co Dublin, IBAN: IE78BOFI BIC: BOFIIE2D Arena Capital Partners Ltd take no responsibility for any errors or omissions in the producing this document. Warning: The value of your investment may go down as well as up. Warning: Past Performance is not a reliable guide to future performance. Warning: If you invest in these funds you may lose some or all of the money you invest. 14 SOCIAL HOUSING INVESTMENT IRISH GOVERNMENT BACKED RESIDENTIAL PROPERTY OPPORTUNITY

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16 IMPORTANT NOTICE The provision of this product does not require licensing, authorisation or registration with the Central Bank of Ireland. Accordingly, investments in it are not covered by the conditions of the Central Bank of Ireland under which consumers may be protected by a statutory compensation scheme. There is no guarantee that the property market performance will generate a positive capital return. This is a capital at risk product. This document is for illustration purposes only and should not be treated as an invitation to invest. Any investment decision should be based on examination of the information Memorandum provided, which will include full Terms and Conditions of the investment, a more detailed description of the investment opportunity and the risks associated with it. Please note that all images used are for illustrative purposes only. This brochure does not provide sufficient information on the terms of loan notes so as to enable an investor to purchase or apply to purchase or subscribe for loan notes. 107 Dublin Airport Business Park Swords Road, Santry, Dublin 9 Tel (1) info@arenaproperty.ie