Benefits of investing in the Spire USA ROC IV Fund (AUD)

The Investment Manager's investment approach in both the Bridge Multifamily and Bridge Office Programs combines a disciplined asset selection process with a focus on operationally-oriented, value-added improvements that increase tenant satisfaction and solve vacancy issues. These improvements are designed to drive growth in Net Operating Income (NOI) and value. This value-add approach is core to the Bridge DNA.

Investor suitability

Long-term investors seeking a total return strategy via exposure to private equity real estate strategies undertaken in the United States.

About the Fund

The Fund will invest as a single Limited Partner in two US private equity real estate investment programs implemented by the Investment Manager, Bridge Investment Group LLC; a specialist US real estate manager with over US$10 billion in AUM and over 1,000 employees nationwide. The first investment program will acquire value-add multifamily apartment communities, and will represent approximately 60% to 70% of the Fund's investments. The second will acquire value-add commercial office buildings in high growth markets within the United States and will represent approximately 30% to 40% of the Fund's investments.

This combination of exposure to value-add multifamily apartments and value-add commercial office properties is consistent with the highly successful predecessor funds in the ROC' fund series, which began in 2009. ROC is an acronym for Real estate Opportunity Capital, and reflects the private equity real estate fund thesis of having committed capital available to take advantage of opportunities in the market.

As at the date of the PDS, the Bridge Multifamily Program has a strong pipeline of potential acquisitions, with 12 assets providing 3,884 rental units, having been identified for potential purchase from different sellers, at a total purchase price of US$517,250,000 million. The Bridge Multifamily Program's first assets are expected to be acquired in mid-late March, following the program's initial capital raising. The Bridge Multifamily Program is seeking to raise a total of US$1 billion in capital commitments, with a target rate of total return (income plus growth) on invested capital of a 12-14% net IRR (USD denominated). If the Investment Manager is successful in achieving its capital raising target (as we expect it to be), then we would expect approximately US$2.5 billion of multifamily investments to be acquired during the program's 3-year Investment Period, which will begin on the First Close of the Bridge Multifamily Program (expected to be late March 2018).

How we invest your money

The Fund Manager seeks to achieve the Fund's investment objective by making Capital Commitments to the Underlying Funds. The Fund Manager will recommend to the Responsible Entity that a Capital Commitment be made to each Underlying Fund at each Close Date, during the Fund's Offer Period. Capital Commitments are in US Dollars. The level of initial or additional Capital Commitment(s) made by the Fund to each Underlying Fund at each Close Date will be dictated by the capital that has been raised and converted to US Dollars by the Fund at that date.

Between 4 and 6 different Close Dates are expected to apply to each Underlying Fund during the time that it remains open for investment. This timeframe will be dictated by the time that it takes the Underlying Funds to achieve their capital raising objectives, but cannot exceed 18 months after the applicable Underlying Fund's First Close date.

It is the intention of the Fund Manager that at the conclusion of the Offer Period, the Fund's exposure to the Underlying Funds, or thus its portfolio allocation, will have the following blend:

• Bridge Multifamily Program: approximately 60% to 70% of the Fund's Capital Commitments

• Bridge Office Program: approximately 30% to 40% of the Fund's Capital Commitments.