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YOUR INVESTMENT OPTIONS

MDO has established three tiers of investment options, structured to accommodate the varied risk and return preferences of investors and investment portfolios. Investors are invited to select investment options which suit their personal preferences for risk and reward, including invitations to participate in each individual property opportunity. MDO may from time to time invest in a portfolio of a specific class of assets within the one Property Trust. Higher risk and return opportunities, via the MDO Mezzanine Fund and the Mezzequity Fund, provide for short term early-stage participation by investors in new and emerging properties and projects.

MDO Property Fund

This represents direct investment into MDO Eligible Property Trusts, which in turn own an individual completed, income-producing and lowly-geared passive asset which has been presented to and approved by the investor. Returns are derived from rental returns, and capital gains on sale of the asset. Minimum investment is $250,000 and conditions apply.

MDO Mezzanine Fund

This represents a short-term investment as mezzanine financier to clients of MDO Projects, supported by second mortgage security over a development asset, with a return to the investor of 15% per annum. Mezzanine Fund investors hold no equity in the underlying asset. Mezzanine Fund investments are generally a higher risk and higher return investment than MDO Property Fund investments.

MDO Mezzequity Fund

This represents the highest risk, highest reward investment option, being a combination of mezzanine funds supported by second mortgage security over a development asset, and unsecured equity which is expended in project feasibilities and other project costs. Mezzequity investors to clients of MDO Projects receive returns of 15% per annum plus negotiated equity in the related project.

Your Investment Portfolio

Each investor profile may vary, and MDO investments are determined by investors at their discretion. For example, a suitably balanced portfolio with MDO, for a specific investor, might be considered as follows:

  • 70% – 80% into MDO Property Funds
  • 20% – 15% into MDO Mezzanine Funds
  • 10% – 5% into MDO Mezzequity Funds

In anticipation of participation in a MDO Property Trust, investors are invited to utilise the MDO Transitional Cash Account, which will be invested in short term institutional money market accounts. This is a fee-free service provided by MDO Property. Minimum investment $A250,000. Conditions apply.