The Macquarie FTSE UK Property Growth Plan (the Plan) is an investment plan designed to offer investors the opportunity to benefit from any growth in the listed UK commercial property market over the investment term. The plan returns are linked to the performance of the FTSE EPRA/NAREIT UK Index™ (the Index).

This offer closes on 2 July 2010.

The Plan will run for a term of 5 years and 2 weeks (the Term). You will receive a return on capital equal to 85% of any increase in the value of the Index over the Term. The maximum return on capital you can receive from the Plan is equal to 75% of your original investment.

Key dates

Offer Opens: 5 May 2010
Offer close date for ISA transfer applications: 18 June 2010
Offer Closes: 2 July 2010
Date of the Initial Index Level: 7 July 2010
Date of the Maturity Index Level: 7 July 2015
Plan Maturity Date: 21 July 2015
Term: 5 years and 2 weeks
Index: FTSE EPRA/NAREIT UK Index™
Date of the Initial Index Level: 7 July 2010
Date of the Maturity Index Level: 7 July 2015
Capital Growth: You will receive a return on capital equal to 85% of any increase in the value of the Index over the Term. The maximum return on capital you can receive from the Plan is equal to 75% of your original investment.

The increase in the value of the Index is the difference between the closing level of the Index on 7 July 2010 (Initial Index Level) and the Final Index Level. The Final Index Level is an average level of the Index over the last 6 months of the Term.

Averaging is an alternative approach to simply taking the level of the Index on a single day at the end of the Term. Averaging aims to reduce the effects of any Index volatility over the final six months of the Term on your return.

You will not receive any return on capital if the Final Index Level is lower than the Initial Index Level.
Repayment of Capital: You will be repaid your original investment in full at maturity if the closing level of the Index on 7 July 2015 (Maturity Index Level) is equal to or higher than 50% of the Initial Index Level.

If the Maturity Index Level is lower than 50% of the Initial Index Level, the amount you will be repaid at maturity will depend on the averaged Final Index Level and will be reduced by the same percentage that the Final Index Level is lower than the Initial Index Level.
Investors: The Plan is eligible for investment directly and via ISA, SIPP and SSAS arrangements. The Plan is eligible for ISA applications for the 2010/2011 tax year.
Taxation:
Investment via an ISA		 Investments via an ISA are not currently subject to either CGT or income tax. However, please note that any interest earned on cash held in the ISA, either before the offer close date if you invested early or after maturity, will be subject to the flat rate charge of 20%.
Taxation:
Investments via SIPP, SSAS, Trustee or Company		 Investors should consult their tax adviser to determine how any profit received from an investment in the Plan will be treated for tax purposes before investing.
Taxation:
Direct investment		 Based on current legislation it is our understanding that any capital returns will be treated as a capital gain. This means that under present legislation you may be able to use your capital gains tax (CGT) annual exemption to reduce or eliminate completely the tax charge on any capital returns.
The Plan Manager: Meteor Asset Management Limited (the Plan Manager) – is responsible for the management of the Plan and is the issuer of the Plan brochure. The Plan Manager is authorised and regulated by the Financial Services Authority (FSA). An investment in the Plan would be a contractual agreement with the Plan Manager.
The Counterparty: The Counterparty – UBS AG, London Branch – is part of UBS Group. UBS AG is regulated by the FSA in the United Kingdom in the conduct of its investment business and currently has a Standard & Poor’s long term credit rating of A+. The Counterparty is the issuer of the Instruments held by the Plan.
Intermediary Commission: 3%

Please note that:

  • an investment in the Plan is a capital-at-risk investment;
  • the return from the Plan depends on the performance of the Index and is subject to counterparty risks; and
  • the basis for calculating Plan returns and partial capital protection assumes that investors remain invested for the entire Term. An investor making an early withdrawal from the Plan may receive less than his/her original investment.

Philipp Graf
T: +44 (0)20 3037 2048
E: Philipp.Graf@macquarie.com

Ken Lewis
T: +44 (0)20 3037 2046
E: Ken.Lewis@macquarie.com

Hugh Baggie
T: +44 (0)20 3037 2859
E: Hugh.Baggie@macquarie.com

Literature order
T: 0800 089 0206
F: 0800 089 0306
E: Macquarie@talismangroup.co.uk

Other than Macquarie Bank Limited ABN 46 008 583 542 (MBL), any Macquarie Group entity noted on this page is not an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). That entity's obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise.

Macquarie Bank International Limited is incorporated and registered as a private limited company in England and Wales with company number 06309906. Its registered office is located at Level 25, CityPoint, 1 Ropemaker Street, London, EC2Y 9HD. Macquarie Bank International Limited is authorised and regulated by the Financial Services Authority (Firm No. 471080).