starting forecast yield
A Product Disclosure Statement for the Centuria 348 Edward Street Fund (Fund) is expected to be available on the 4 November 2019 and the Fund open for investment from that time. If you wish to download the PDS, please complete an expression of interest form.
The Fund is forecast to provide attractive, tax-effective returns of 6.25% p.a.1,2(annualised) in FY20 and growing to 6.50%p.a.2 in FY21.
The Fund is a single-asset, closed-ended unlisted property fund investing in the property located at 348 Edward Street, Brisbane QLD, with a WALE of 5.1 years3. The property is 88% leased with secure income underpinned by a number of multinational and ASX listed companies.
The property is positioned in the heart of Brisbane, and the Queensland economy is forecast to outperform the nation over the next five years, with predicted growth of $250b by 20315.
|Fund open||4 November 2019|
|Applications and payment due||29 November 2019|
|Fund establishment date||13 December 2019|
|First distribution||11 January 2020|
The Fund is forecast to provide attractive, tax-effective returns of 6.25%p.a.1,2 (annualised) in FY20 and growing to 6.50%p.a.2 in FY21, with distributions being paid on a monthly basis. Forecast returns are also anticipated to be ~100% tax deferred for both years.
The minimum investment in the Fund is $50,000. Centuria may accept investments that are less than this amount at its discretion.
The Fund will have an initial investment term of five (5) years.
The Fund term may be extended by up to an additional two (2) years by an Ordinary Resolution of the Investors (more than 50% of votes cast are in favour of the extension). The term of the Fund may be extended beyond seven (7) years for up to two (2) years at a time where a Unanimous Resolution is passed by Investors (100% of votes cast are in favour of the extension).
The Fund term may also be extended where a Unanimous Resolution is not passed, but all Investors who voted against the Unanimous Resolution are given an opportunity to have their Units sold or redeemed at the prevailing Withdrawal Price (Liquidity Event). Whether a Liquidity Event is offered is determined by Centuria. Please refer to the PDS for more information about a Liquidity Event.
If a Liquidity Event is not offered by Centuria, then the Fund term will not be extended and Centuria will sell the Property and wind up the Fund.
No redemption facility is available.
Centuria Capital Group is an ASX listed specialist fund manager with $6.6 billion4 of assets under management.
Centuria Property Funds offers investments in listed and unlisted property across 70+ high quality office and industrial buildings around Australia. We are a relationship business, forging close connections with investors and actively managing properties to improve usability and attract and retain good tenants. We see this as our competitive advantage, which has helped us achieve a strong record of competitive income returns and capital growth.
The unlisted business has a 20 year heritage and in that time, has completed 38 unlisted property funds.
Centuria’s investment philosophy is founded on an active management approach to real estate where relationships are key and value can be added at all stages of the investment process (acquisition, ownership, management and disposal). Centuria has a particular strength in identifying assets that require intensive asset management to maximise returns and has an in-house team to deliver the requisite range of value-add services. Centuria does not try to predict broader macro economic trends but instead believes that an asset that is well acquired and actively managed will outperform a passive approach through the full economic cycle.
Centuria believes in a “hands-on” approach to managing property assets. Unlike a lot of property fund managers, Centuria does not outsource its property management to real estate agents (although property management may be outsourced in remote locations or for special purpose assets). Centuria has a fundamental belief that it can deliver better returns from its property assets by having a closer relationship with the tenants and a better understanding of the buildings themselves.
All investments in unlisted property funds carry risk. As the Fund invests in commercial property, it carries the market and property risks associated with investing in property. As a geared investment, the Fund also carries associated financial and leverage risks. Risks can impact on distribution and capital returns over the term of the Fund. It is important that you read the Product Disclosure Statement and understand the risks of investing.
(1) Annualised distribution yield for the period 12 December 2019 to 30 June 2020.
(2) Forecast returns are predictive in nature and are calculated in accordance with a number of underlying assumptions set out in the Product Disclosure Statement. As such, returns may be affected by incorrect assumptions or by known or unknown risks and uncertainties and may differ materially from results ultimately achieved. Returns are not guaranteed.
(3) Weighted Average Lease Expiry by income as at 1 December 2019 including an 18 month rental guarantee over vacant tenancies and subject to Heads of Agreement leases not yet finalised.
(4) As at 8 October 2019, assuming completion of 348 Edward Street, Brisbane and Centuria Metropolitan REIT’s transactions.
(5) Source: CBRE Asia Pacific Investor Intentions Survey 2019, Trade & Investment Queensland, CBRE Research, JLL Research, Queensland State Budget FY20.
Disclaimer: Centuria Property Funds No.2 Limited ABN 38 133 363 185 AFSL 340304 (Centuria) is the responsible entity for the Centuria 348 Edward Street Fund (Fund) (ARSN 636 584 515). Centuria expects to issue a Product Disclosure Statement (PDS) for the Fund on or about 4 November 2019. This information is general information only and does not take into account the objectives, financial situation or particular needs of any person. You should consider whether this information is appropriate for you and consult your financial or other professional adviser before investing. You should obtain and read a copy of the PDS relating to the Fund before making a decision to invest. Centuria and its associates will receive fees in relation to an investment in the Fund as disclosed in the PDS. Investment in the Fund is subject to risk including possible delays in payment or loss of income and principal invested. Centuria does not guarantee the performance of the Fund.