Perth Surf Park

Disclaimer: Investors should read the Deed Poll in full, as this investment carries risks. Liquidity Technology Pty Ltd will receive fees as Lead Manager.

Offeror: PSP Properties Pty Ltd atf Perth Surf Park Property Trust (PSP).

Loan Note: Unsecured loan note instrument issued by the Offeror.

Subscription Amount: Minimum $50,000, and available in multiples of $50,000.

Offer: Up to 200 Loan Note subscriptions, raising up to $10,000,000. There is no minimum offer amount.

Use of Funds: For the construction and delivery of the Perth Surf Park

Escrow Period: Subscription Amount held in escrow by Lead Manager pending commencement of construction of the Perth Surf Park.

Lead Manager: Liquidity Technology Pty Ltd.

Term: 6 years.

Interest Rate: 10% simple interest per annum. Interest is calculated and accrues daily.

Alternative Return: Loan Note holders can settle accrued interest by electing to receive either 1. cash ("cash settled" once annually), or 2. in-kind benefits ("surf benefits").

Surf Benefits: Are an entitlement to prescribed Perth Surf Park experiences and benefits, which include (but not limited to):

• "Pre-Opening" surf benefits (in Year 2 of the Term), being a full day unique private experience surfing at the Perth Surf Park prior to public opening (valued at approximately $5,500 per Loan Note subscription); and
• “Post-Opening” surf benefits (in Years 3 to 6 of the Term), being 60 public surf sessions per annum, a 1 hour off-peak “Reef” hire per annum, a double pass (2 public surf sessions) valid for use on your birthday, plus other perks and benefits. “Post-Opening” surf benefits associated with each Loan Note subscription may be used by up to 5 nominated persons (e.g. family members, friends, colleagues, staff, or clients). “Post-Opening” surf benefits are valued at approximately $6,300 per annum, per Loan Note subscription.

Election Date: By 30 September each year, Loan Note holders to nominate whether to receive accrued interest as cash-settled or as surf benefits for the following year of the Term.

Election Restrictions: Loan Note holders cannot elect to receive part cash settled, and part surf benefits. Once made, elections are final and cannot be amended or substituted for that year of the Term. From the second year of the Term, if a Loan Note holder fails to make an election by 30 September, the Loan Note holder will be deemed to have elected to receive surf benefits for the following year.

Interest Capitalisation: During the first year of the Term (project construction), accrued interest will be capitalised, rather than paid, for all Loan Note holders. Accrued interest will also be capitalised in the second year of the Term for Loan Note holders who elect not to receive the “pre-opening” surf benefits.

Assignment: Loan Notes subscriptions are freely transferable and tradeable by Loan Note holders to third parties.

Redemption: Loan Notes will be redeemed at the conclusion of the Term, and may be redeemed at an earlier date at the discretion of PSP.

Cancellation: If the project will not reach completion, the Subscription Amount, plus any interest accrued and unpaid, will be returned to Loan Note holders, and Loan Notes will be cancelled by PSP.

PSP is now welcoming investment in the Perth Surf Park.

Sophisticated investors may subscribe for Loan Notes ($50,000 minimum subscription, available in multiples), and receive 10% simple interest per annum over the 6 year term, with the principal amount and any capitalised interest repaid at the end of the Term.

On the closing of the Loan Note offer, committed funds will be held in escrow by the Lead Manager until construction commences on the Perth Surf Park, estimated for late 2024. Once construction commences, funds will be released to PSP to be used for the development and delivery of the project.

As the project approaches delivery of first waves in the surfing lagoon , Loan Note holders may elect each year to receive either 10% cash settled interest, or in-kind “surf benefits”:

• Pre-Opening Surf Benefits: A full day unique private experience at the Perth Surf Park, providing Loan Note holders with the opportunity to be one of the first to surf Australia’s only 56-module Wavegarden ‘Cove’.
• Post-Opening Surf Benefits: Being 60 public surf sessions per year, a 1 hour off-peak ”Reef” hire per year, a double pass (2 public surf sessions) valid for use on your birthday, plus other perks and benefits. "Post-Opening" surf benefits may be used by up to 5 nominated persons (e.g. family members, friends, colleagues, staff, or clients).

The choice to receive surf benefits or cash interest is yours, with the election made on an annual basis.

For those who elect to receive "Post-Opening" surf benefits, it is anticipated that this will be the lowest cost way to surf at the Perth Surf Park regularly, with surf session entitlements of Loan Note holders priced at a ~30% discount to expected retail prices of public surf sessions.

Opening in early 2027, the Perth Surf Park is set to become a premier sports, hospitality, entertainment, and tourism destination for Perth.

Featuring Australia’s largest Wavegarden ‘Cove’ surfing lagoon, the Perth Surf Park will offer perfect waves for everyone in a safe, controlled, and accessible environment. Together with quality hospitality, and leisure amenities, the Perth Surf Park will redefine surf and wellbeing in Western Australia.

Located adjacent to the Kwinana Freeway, 18 kilometres south of the Perth CBD in Cockburn Central, the Perth Surf Park is a 5.9 hectare development that is expected to welcome up to one million guests each year to enjoy unique surf-based experiences, major events, and community programming.

A high-performance surf academy, surf rental, fitness studio, outdoor gym, and skate park complements the surfing lagoon, along with a health and wellness centre, beach club, quality restaurants and bars, events lawn, retail store, members lounge, and rooftop glamping accommodation.

With the support of the WA Government, local investors, and our community, construction is expected to commence in late 2024, ahead of the Perth Surf Park’s public opening in early 2027.

The project is forecast to be cashflow positive and profitable from opening.