With approval from the then Minister for Finance, DHA Investment Management Limited (DHA IML) was established as a wholly owned subsidiary of DHA in 2012. The company obtained an Australian Financial Services Licence (AFSL) from the Australian Securities and Investments Commission (ASIC) to conduct a financial services business.
DHA IML operates under the Corporations Act 2001 and, as such, has its own governance arrangements, including a Chief Operating Officer, Compliance Officer, Responsible Managers and a Board of Directors. Refer to the DHA IML website for more information.
Property fund
In November 2013, DHA IML raised $47.1 million through the sale of 47.1 million units in DHA Residential Fund No. 1 (the Fund) and purchased 79 residential properties from DHA on a lease back arrangement. DHA IML was the responsible entity of the Fund.
DHA IML issued all funds to the Centric DHA Residential Property Fund, a fund managed by Centric Limited. The Fund was intended to have a life of 10 years. However, in July 2015, Centric requested the realisation of their investment in the Fund. DHA IML managed the sell down process and the Fund was officially wound up in September 2016.
Financial performance
DHA IML’s financial performance for the period ended 30 June 2017 was broadly consistent with the budget. The net loss after tax for the period was $86,702 against a budgeted net loss of $110,629. This was due to the service fee paid by DHA IML to DHA being reduced during the year, consistent with its diminished role following the Fund’s wind up. The audited financial statements in Part 5 of this report are presented on a consolidated basis and include DHA IML financial results.
Future funds
The future of DHA IML is being considered as part of an independent review of DHA’s capital management strategy. DHA IML’s AFSL has been retained until such time as a decision is made about its future. Ministerial approval must be given before DHA (or DHA IML) may pursue any further residential real estate fund arrangements.