Peak Living Blenheim Retirement Village PIE Fund – Investor FAQ

ABOUT THE FUND

1. What is the Peak Living Blenheim Retirement Village PIE Fund?

The Fund is a wholesale managed investment scheme that provides secured but subordinated development funding to Peak Living Blenheim Limited (the Developer) to build a new retirement village in Blenheim. Investors receive Units in the Fund, not ownership of the village.

2. Who can invest in the Fund?

Only Wholesale Investors under clauses 3(2) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act 2013. Investors must complete AML/CFT verification and provide evidence of wholesale eligibility.

3. Is this a retail investment?

No. This is strictly a wholesale offer and is not registered as a retail product disclosure statement.

4. What is the minimum investment?

The minimum investment is $70,000, representing 10% of a Unit. Investors may invest in 10% increments up to a full Unit of $700,000.

PURPOSE AND USE OF FUNDS

5. What will my investment be used for?

Funds are loaned to the Developer to pay for:

Land acquisition
Design and resource consents
Civil works and construction
Materials and professional services
Operating costs until the village becomes self‑funding

Unutilised funds are held in bank term deposits.

6. Is the loan secured?

Yes. The Fund holds:

A second‑ranking mortgage over the village land and buildings
A general security deed over all present and future assets of the Developer

A senior lender (bank or alternative lender) will hold first‑ranking security if required.

7. What protections exist before capital is deployed?

Capital cannot be drawn by the Developer until:

Resource consent is granted
Quantity Surveyor (QS) verifies cost‑to‑complete
All Development Documents are approved
Insurance is in place
All conditions precedent in the Development Loan Agreement are satisfied

RETURNS AND PERFORMANCE

8. How do investors make money?

Investors receive two return components:

A) Capital appreciation linked to the village’s average unit entry price once operating
B) Quarterly distributions from interest charged to the Developer (target 7–9% p.a.)

9. What is the target total return?

The indicative total return range is 7%–12.5% p.a., depending on:

Construction progress
Interest rate settings
Marlborough property market movements
Timing of investor withdrawal

10. How is capital appreciation calculated?

Capital appreciation is determined monthly using the Facility Fee formula, which aligns the Fund’s value with the average entry price of village units across all classes (2‑bed villas, 3‑bed villas, serviced apartments).

11. Are returns guaranteed?

No. Returns may be higher or lower than targeted.

FUND STRUCTURE AND GOVERNANCE

12. Who manages and oversees the Fund?

Fund Manager: Peak Living Funds Management Limited (FSP1013335)
Administrator: Bancorp Wealth Management Limited
Trustee & Custodian: Public Trust (Crown‑owned)
Statutory Supervisor (Village): Covenant Trustee Services

13. What independent oversight exists?

Oversight includes:

Public Trust trustee supervision
QS monthly certification
Mandatory ORA proceeds sweep
Strict covenants on Developer behaviour
Independent annual audit
Statutory Supervisor oversight under the RV Act

DEVELOPMENT AND CONSTRUCTION

14. What is being built in Blenheim?

The village is planned to include:

82 duplex villas (62 two‑bed, 20 three‑bed)
20 serviced apartments
40 care suites
A 20‑room dementia care house (Hogeweyk‑inspired)
A community centre, wellness facilities, and medical rooms

15. Why Blenheim?

Blenheim has:

High proportion of residents aged 65+
Low retirement village penetration
Strong property market (8.57% CAGR over 10 years)
Favourable lifestyle and climate

16. How long will construction take?

Approximately 60 months, with peak funding exposure around 36 months.

17. What happens if construction costs increase?

Cost overruns must be funded by the Developer, not the Fund. QS oversight ensures early detection. Temporary senior debt increases (up to 60% LVR) require Trustee approval.

DISTRIBUTIONS, TAX AND FEES

18. When are distributions paid?

Quarterly on:

15 February
15 May
15 August
15 November

During construction, distributions are accrued to capital.

19. Is the Fund a PIE?

Yes. The Fund is a multi‑rate PIE, meaning:

Tax is capped at 28% PIR
Investors must provide their correct PIR and IRD number
PIE status improves net returns compared to standard investment taxation

20. What fees aply?

Entry Fee: 2% of Unit Price
No Exit Fee
Manager & Trustee fees as disclosed in the IM

21. Are there performance fees?

No performance fees are disclosed in the IM.

RISKS

22. What are the key risks?

Major risks include:

Subordination to senior lender
Construction delays or cost overruns
Property market volatility
Developer credit risk
Liquidity constraints during construction
Regulatory compliance under the RV Act
Natural disaster or environmental events

23. How are risks mitigated?

Mitigations include:

QS certification
Mandatory ORA proceeds repayment
Strict covenants and reporting
Full replacement insurance
Trustee and Statutory Supervisor oversight
Step‑in rights for the Fund

WITHDRAWALS AND LIQUIDITY

24. Can I withdraw my investment?

Withdrawals are discretionary and generally not permitted during construction.

25. How does the exit process work?

Investor submits an exit request
Manager assesses liquidity and may approve withdrawal
If not approved, Peak Living may facilitate a secondary market sale
Exit value is based on NAV, aligned to the average village entry price

26. Is there a secondary market?

Yes. Peak Living will assist in matching buyers and sellers, though sale price is negotiated privately.

MOVING INTO THE VILLAGE

27. Does investing guarantee a home in the village?

No. Investment does not guarantee occupation rights.

28. What are the Peak Benefits?

Peak Benefits (offered at Developer discretion) may include:

Reduced deferred management fee (DMF)
Priority access to the village
Early entry consideration for investors aged 65+ with ≥70% Unit investment
Favourable ORA terms including DMF accrual period up to 7 years (T&Cs apply).

29. If I invest less than a full Unit, what happens when I move in?

You pay a top‑up equal to the difference between your investment and the average entry price at the time of occupation.

DOCUMENTATION AND SUPPORT

30. Where can I access the Investor Memorandum, Application Forms, Master Trust Deed, and Establishment Deed?

Email info@peakliving.co.nz to request copies. Master Trust and Establishment Deeds are provided on the successful completion of a wholesale investor application.

31. Who do I contact for more information?

Peak Living Funds Management 0800 PEAK LV (732 558) or at info@peakliving.co.nz .

32. What if I have a complaint?

If you have contacted Peak Living Funds Management Limited and still feel your complaint has not been resolved satisfactorily, you can contact Financial Services Complaints Limited who are an independent and impartial dispute resolution service. Their services are free to consumers. They can be contacted at 0800 347 257 or through their website at https://fscl.org.nz .

ARTICLES (PDF)

IMPORTANT NOTES

The Peak Living Blenheim Retirement Village PIE Fund will be managed by Peak Living Funds Management Limited and administered by Bancorp Wealth Management Limited.

An investment in the Peak Living Blenheim Retirement Village Fund will only be available to wholesale investors in terms of clause 3(2) or 3(3)(a) of Schedule 1 of the Financial Markets Conduct Act 2013. Applications for investment will be made available on request through the Peak Living Blenheim Retirement Village Fund Information Memorandum. Expressions of interest are welcome, and do not involve an obligation or a commitment to invest.

Peak Living Management Limited being the promoter intends to apply for registration of the village under the Retirement Villages Act 2003 in or around mid 2027. We are unable to make any offers of occupation in the village to the public at this stage.