VL6 is offering fully paid ordinary shares in Victor Lima 6 Limited, with each share stapled 1:1 to a blockchain-based digital token. Investors are buying an equity interest in the company, not a managed fund product. 

Investors hold a beneficial interest in shares of Victor Lima 6 Limited. Those shares are held on bare trust by Everlasting Trustees Limited on behalf of investors, and each share is stapled to a corresponding token. From settlement, investors have a fractionalised beneficial interest in the company and a commensurate fractionalised beneficial interest in the property via the company structure.

Victor Lima 6 Limited is a special purpose vehicle formed solely to acquire and develop the property at 6 Viewland Avenue, Onehunga, Auckland. It is not intended to undertake any other business activity or acquire other assets. The project is powered by Propopoly, the fintech platform that provides the underlying technology and investment infrastructure supporting the offer.

The project - The Viewlands is an 8-unit townhouse development in Onehunga. The PDS also notes the existing resource consent supports demolition of the current dwelling and construction of eight semi-detached residential dwellings across four buildings.

The issue price is $100 per share. The minimum application is 5 shares ($500), and the maximum is 658 shares (4% of total shares on issue). The PDS says the $100 denomination is set for practical and administrative reasons and is not an independent valuation of the company or property.

The raise is intended to fund the property acquisition, offer-related costs, and working capital. The PDS states approximately $288,000 is intended for working capital (including governance, administration, compliance, legal and reporting costs), with the balance applied toward acquiring the property.

Yes. Terra Limited, the current sole shareholder, has agreed to underwrite the offer by subscribing for unsold shares after the minimum subscription condition has been satisfied.

The shares will not be quoted on a licensed NZ market. Instead, the stapled tokens may be traded on a closed-loop peer-to-peer platform operated by Propopoly. However, secondary trading is not expected to be available for approximately three months after completion of the offer, and even after that there is no guarantee of liquidity or that a buyer will exist. Investors may receive less than they invested.

The PDS lists an intended first dividend payment date of 26 February 2027. That is an indicative date only, not a guarantee of a dividend being declared or paid.

The PDS identifies several key risks: single-asset risk, capital loss and liquidity risk, property ownership and market risk, new-business risk (as the company is newly established), regulatory risk, blockchain/tokenisation risk, no trading facility for the initial period, no buyback obligation, and tax law risk.

The company has a conditional Development Services Agreement with Devgru Limited, which is responsible for securing third-party development finance and undertaking the development. The company is also obliged to pay Devgru a development management fee equal to 3% of Total Development Cost (excluding land acquisition, financing costs, the DM fee itself, and GST).

Any dividends paid are intended to be fully imputed, reflecting the 28% New Zealand corporate income tax the Company has already paid on those profits. New Zealand resident investors will have Resident Withholding Tax (RWT) deducted at the time the dividend is paid.