Centuria Diversified Property Fund

Transcription

1 Centuria Diversified Property Fund The Centuria Diversified Property Fund aims to provide monthly tax effective income and the potential for long-term capital growth by investing in a diversified portfolio of predominantly commercial, industrial and retail direct property. This document is strictly for the use of Financial Advisers and Wholesale Clients only and must not be distributed to any Retail Client.

2 Fund Highlights A multi asset, open ended unlisted property fund Target portfolio allocation of 80% direct property, 15% A-REITs and 5% Cash Daily application and unit pricing Distributions paid monthly Withdrawals processed monthly 1 Distribution Reinvestment Plan (DRP) Initial direct exposure via unlisted property funds as the fund grows it will acquire direct assets 1. Withdrawals are limited to the terms detailed in the PDS and are subject to the Fund s liquidity policy and are summarised on Centuria s website PAGE 2

3 Fund Performance As at 31 December Month Return (%) 12 Month Return (%) Inception (%) 2 Distributions Capital Growth Total Return Benchmark Outperformance Performance is shown for informational purposes only. Past performance is not a reliable indicator of future performance. Performance fees may affect total return performance. 1. The benchmark comprises 80% IPD Unlisted Core Retail Property Index, 15% ASX S&P 300 A-REIT Accumulation Index and 5% the Reserve Bank of Australia official cash rate. 2. Inception as at 24 th June PAGE 3

4 Asset Allocation 1. Other asset allocation includes the following funds: 203 Pacific Highway Fund 0.45%, 19 Corporate Drive Fund 0.35%, 2 Wentworth Fund 0.26%, SOP Fund 0.21%, 8 Central Av No.2 Fund 0.13% 2. Vanguard Australian Property Securities Fund 3. Cash/Cash equivalents consist of: Vanguard Cash Plus Fund 4.20%, Cash at bank 4.94% PAGE 4

5 Geographic Diversification PAGE 5

6 Fund Portfolio Metrics As at 31 December 2017 Properties 12 Fund Net Assets $27m Weighted Capitalisation Rate 6.69% Net Lettable Area (sqm) 170,579 Number of Tenants 119 WALE (years) 7.11 Occupancy (weighted by area) 98% PAGE 6

7 Tenant Mix As at 31 December 2017 Tenant % of Weighted Income Asset 1 Government Property NSW (GPNSW) Transport 16.58% The Zenith 2 Energex Limited 8.87% Sandgate Road 3 Commonwealth of Australia (Austrac) 6.49% The Zenith 4 Government Property NSW Healthshare 6.38% The Zenith 5 Commonwealth of Australia (Department of Health) 6.31% Scarborough House 6 Secure Parking Pty Ltd 5.91% The Zenith 7 ehealth 5.36% The Zenith 8 Perth Clinic Pty Ltd 5.20% Havelock House 9 Lendlease Management Services Limited 4.90% The Zenith 10 Sage Software Australia Pty ltd 4.19% The Zenith PAGE 7

8 Fund Portfolio Summary As at 31 December 2017 Investments Portfolio Weighting Asset Location Property Valuation ($m) Cap Rate Look-through LVR Occupancy WALE (by years) Zenith Fund % NSW $ % 43.00% 95% 3.32 Scarborough House Fund 9.50% ACT $ % 41.88% 100% 7.61 ATP Fund 2.74% NSW $ % 36.44% 99% Corporate Drive Fund 0.35% QLD $ % 35.60% 100% Wentworth Street Fund 0.26% NSW $ % 36.93% 100% 2.75 Havelock House Fund 25.42% WA $ % 40.13% 100% Central Avenue Fund No % NSW $ % 37.43% 100% 8.47 Sandgate Road Fund 14.77% QLD $ % 43.86% 100% Pacific Highway Fund % NSW $ % 32.02% 100% 3.00 SOP Fund 0.21% NSW $ % 39.13% 100% 8.91 A-REITs 12.18% Cash 9.15% Fund Portfolio 100% - $ Based on 50% ownership PAGE 8

9 Fee Schedule Acquisition fee 2.0% (of GAV) 1 Base management fee 0.8% p.a (of GAV) 2 Disposal fee 1.0% (of sale price of any property asset) 3 Performance fee 20% of outperformance of the benchmark 4 Professional service fees (e.g property management and leasing fees) Charged on normal commercial rates 1. An acquisition fee is not charged on investments in Centuria managed unlisted property funds, unless the NTA per unit (at the time of acquisition) of the underlying fund has recovered all initial acquisition transaction costs. 2. The base management fee is not charged on investments in Centuria managed unlisted property funds, unless the management fee charged in the underlying fund is less than 0.8% p.a. of GAV (in this case the fee differential is charged). 3. Payments to third party sales agents are funded from the disposal fee. With regard to indirect property investments, the 1.0% disposal fee is multiplied by the Fund s percentage beneficial interest in that indirect property investment. 4. The performance fee will be calculated and paid quarterly. The performance fee is charged on a high watermark basis such that any underperformance of the benchmark must first be recovered before any performance fees are payable. The performance fee benchmark is comprised of: 80% - IPD Unlisted Core Retail Property Index 15% - ASX S&P 300 A-REIT Accumulation Index 5% - Reserve Bank of Australia official cash rate PAGE 9

10 Investment Rationale Access to a high quality diversified property portfolio Attractive tax effective monthly distributions and the potential for long term capital growth Monthly liquidity facility Daily applications and daily unit pricing Centuria is a high quality investment manager with a successful 20-year track record PAGE 10

11 Disclaimer Information in this document is general information about the Centuria Diversified Property Fund (Fund) and is for the use of Financial Advisers and Wholesale Clients only. The Fund is a registered managed investment scheme (ARSN ). Investment in the Fund is subject to risks that are set out in the Product Disclosure Statement (PDS) dated 24 October The PDS is made available from Centuria s website ( Investors should read the PDS in full before making a decision to invest. Fund forecasts are not guaranteed. An investment in the Fund may only be made using the application form in the PDS. This document has been issued by Centuria Property Funds Limited (ABN AFSL Centuria) and contains general information about Centuria and its related bodies corporate that is current as at September This document is not a recommendation or personal advice in relation to, or any offer of securities in, Centuria or any product or service offered by Centuria and does not take into account the investment objectives, financial situation or needs of any particular person. Therefore, before acting on the information in this document you should consider the appropriateness of an investment in the Fund having regard to your objectives, financial situation and needs. The Centuria Diversified Property Fund (Fund) is a registered managed investment scheme (ARSN ). Centuria is the responsible entity of the Fund and the issuer of units in the Fund. The Fund s Product Disclosure Statement (PDS) is dated 24 October 2017 and is available from Centuria s website 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. This document has been prepared from information believed to be accurate, however, no representation or warranty is made as to the accuracy or adequacy of any information contained in this document. CA-CPFL-12/02/ PAGE 11