Learn more about unlisted property funds

An unlisted property fund is an investment vehicle that can provide an entry point for investors who would like to include commercial property in their portfolio – an option which can otherwise be extremely expensive.

Unlisted Property Funds are not listed on the Australian Securities Exchange (ASX) and are accessed through property fund managers, such as Centuria.

Investing this way generally means pooling money with other investors during a capital raise by a fund manager. This pool of money then funds the purchase of the commercial property or properties.

They are typically held under one of two structures – closed ended and open ended funds.

The first structure is a closed ended structure, which means once the capital is raised to purchase the building – the fund is closed to investment. Closed ended funds usually have an initial investment term of five years.

It’s important to note that many closed ended funds have no liquidity (therefore you cannot redeem your investment earlier than the investment term, unless unitholders vote to sell the property prior).

The other structure is an open ended fund, which remains open permanently, or periodically, to investors to finance ongoing acquisitions for the fund. These funds typically grow in size over time, as additional properties are added – further diversifying the investment of the Fund. Open ended funds typically also offer liquidity on a more regular basis than closed ended funds.

Centuria’s unlisted property funds invest in buildings across different asset classes such as office, retail, industrial, agriculture and healthcare. So, it is likely that there will be funds to suit your risk appetite and diversification goals.

The funds are open to all investor types including individual investors, self-managed super funds and companies.

Investors should read the Product Disclosure Statements and any Target Market Determination documents associated with the Fund on offer before investing.

So, how do we identify the right properties to create investment products / funds?

Centuria is always on the lookout for commercial property opportunities to invest in which we believe will generate attractive returns for investors.

A Fund Manager and the Transactions team will search for buildings with good tenants, such as government, multi-nationals or listed companies, strong surrounding infrastructure i.e. those areas benefiting from government developments and conveniences, and buildings that have the opportunity for improvements to be made by our Asset Management team.

Upgrading a building’s facilities to retain and attract new tenants can lead to an increase in the value of the property, as well as drive potential rent increases.

Centuria has a strong track record of managing, leasing and improving our property portfolio with over 20 years’ experience and an in-house asset management team.

An investor can choose to invest in a Centuria unlisted property fund, normally with no maximum on how much to invest. The minimum investment entry points are $10,000 for some of the open ended products and $50,000 for closed ended offerings.

The easiest way to invest is via Centuria’s online application process. Once your application and your anti-money laundering checks are complete, you simply transfer the funds by instruction or with the assistance of our friendly investor relations team.

Express your interest today at centuria.com.au/invest and be on the early bird notification emails when Centuria launch a new fund.

And that is a quick introduction into investing in unlisted property funds by Centuria.