Appian Burlington Property Fund

Transcription

1 Appian Burlington Property Fund Appian Burlington Property Fund i

2 Appian Burlington Property Fund Investment Policy Key Fund Information Target assets are office, retail and industrial investment properties in Ireland Irish ICAV/QIAIF authorised by the Central Bank of Ireland Risk mitigated by diversification across sectors: Sector Range Office 30-50% Retail 30-50% Industrial 0-20% A full prospectus is available from Appian Open ended fund Minimum investment 100,000 Focus on greater Dublin area (80-100%) and regional urban centres (0-20%) Properties will be let on long leases to sound financial covenants Maximum of 20% of portfolio subject to active asset management at any time Initially targeting properties in the 5-15 million range 2 year lock in from date of investment Independent valuation of portfolio with formal annual valuation and desk top quarterly valuations Management fee of 1.35% of GAV or 2% of NAV Bank debt not to exceed 50% of market value of the Fund s gross property assets Income distribution share class available Current properties in the fund are set out on pages 1 6 Please read the legal regulatory and warning notices on inside back cover.

3 Fenward House, Sandyford, Dublin Office investment 20,000 sq. ft. and 34 car spaces Let on 10 year lease from July 2015 Initial net yield - 8% Rent of 19 per sq. ft. Market rents now over 20 per sq. ft. and rising Appian Burlington Property Fund 1

4 Bank of Ireland, Drogheda Retail/commercial investment Landmark building in town centre location 7,000 sq. ft. Let to Bank of Ireland on a 25 year lease from years remaining Initial net yield 7.1% 2 Appian Burlington Property Fund

5 Tuansgate, Tallaght Town Centre 6 storey, Grade A office investment 39,510 sq. ft. and 103 car spaces Let to State agency (82%) and major multinational (18%) Initial net yield 7% Rent of per sq. ft. plus 700 per car space WAULT 7.7 years Appian Burlington Property Fund 3

6 73 Patrick Street, Cork 74/75 Patrick Street, Cork Retail investment in prime city centre location 4,166 sq. ft. Let to Abrakebabra, Irish fast food multiple Initial net yield 6% Let on a 35 year lease from 1991, 8 years remaining Retail investment in prime city centre location 8,385 sq. ft. Let to Sostrene Grene, a Danish retail multiple Initial net yield 6% increasing to 6.25% in year lease from 2016, break option in year 7 4 Appian Burlington Property Fund

7 Boroimhe Shopping Centre, Swords Well established local centre with 10 retail tenants Super-Valu store as anchor tenant Tenants include crèche, gym and health centre 33,530 sq. ft. and 75 car spaces Initial net yield 7.8% WAULT 12.5 years Appian Burlington Property Fund 5

8 Beaver House, Clonskeagh, Dublin 29,500 sq. ft. 3 storey modern office investment with 84 car spaces Let to quoted US multinational (66%) and 2 Irish private companies (34%) Rent psf ranging from 14 to Initial net yield of 5.75% with strong reversionary potential at rent review in 2020 WAULT 6.5 years 6 Appian Burlington Property Fund

9 Appian Burlington Property Fund Team Investment Manager Appian Asset Management, established in 2003, is a leading Irish asset manager providing investment management services to private clients, pension funds, charities and corporates. Patrick J Lawless Chief Executive Officer Appian Asset Management Kevin Menton Director Appian Asset Management Brian Cahalin Director Appian Asset Management Investment Advisor Burlington Real Estate is a leading independent property asset management company founded by John Bruder and Niall Kavanagh in John Bruder Managing Director Burlington Real Estate Niall Kavanagh Property Director Burlington Real Estate Legal Advisors Auditors Valuation Agent Mason Hayes & Curran Eversheds Sutherland Grant Thornton Cushman & Wakefield Appian Burlington Property Fund 7

10 Irish Property Market Good Value Attractive and improving income yields Occupier Demand growing Property capital values still down on average 43% since the peak in 2007* - despite recent recovery Some sectors are fully priced eg. Dublin CBD office rents are back to peak levels but others offer value: Dublin suburban office values still below replacement cost Prime provincial retail property rents are still over 50% below peak Average income yield is 5.8% across Irish commercial property market* Compelling income differential given 5 year Bond yield of sub 1% Sectors such as Dublin suburban office, suburban and provincial retail, industrial yield over 6% Average all-property rental values up 2.7% in first 3 quarters of 2017 but still 26% below peak* Irish letting agents report upturn in tenant activity both from local and international occupiers Occupier demand recovery commenced in central Dublin and spreading to main suburban and regional centres Brexit demand likely to benefit Dublin property market though uncertainty may slow investor confidence Economic fundamentals supportive of property recovery Capital Value Growth Across Markets, USA Index 2007 = UK Spain 30 Ireland Source: MSCI Real Estate Analytics, Dec Appian Burlington Property Fund *Source: MSCI/IPD

11 Legal, Regulatory and Warning Notices The information contained in this material is not financial advice and does not constitute a prospectus. Nor does it constitute an offer or a solicitation of an offer for the purchase or sale of any financial instruments, trading strategy, product or service. No one receiving this material should treat any of its contents as constituting advice. It does not take into account the investment objectives, knowledge, experience or financial situation of any particular person. You should seek advice in the context of your own personal circumstances prior to investing or taking out any product from your own independent adviser. Nothing in this overview should be considered as a recommendation by Appian or Burlington. This material has been prepared and issued by Appian Asset Management Limited and Burlington RE Property Management Limited on the basis of publicly available information, internally developed data and other sources believed to be reliable. While all reasonable care has been given to the preparation of the information, no warranties or representation, express or implied are given or liability accepted by Appian Asset Management Limited, Burlington RE Property Management Limited or its affiliates or any directors or employees in relation to the accuracy, fairness or completeness of the information contained herein. Any opinion expressed (including estimates and forecasts) may be subject to change without notice. If you decide to invest in the Appian Burlington Property Fund, further information in relation to all risks will be provided in the Fund Prospectus and supplements. This is available from Appian Asset Management Limited, 42 Fitzwilliam Place, Dublin 2 or Burlington Real Estate Limited, 45 Fitzwilliam Place, Dublin 2. If you invest in the Appian Burlington Property Fund, you may lose some or all of the money you invest. The value of your investment may go down as well as up. This investment may be affected by changes in currency rates. The investment policies on the inside front cover are the initial targets for the funds portfolio and it Is not assured that the portfolio will meet these targets. The information on pages 1-6 relating to the properties in the fund portfolio is current as at 1 March This information is subject to change. References to past performance are for illustrative purposes only and are not a reliable guide to future performance. Projected returns are estimates only. Forecasted returns depend on assumptions that involve subjective judgement and on analysis that may or may not be correct. Appian Asset Management Limited is regulated by the Central Bank of Ireland. Burlington RE Property Management Limited is authorised by the PSRA. The Appian Burlington Property Fund is a sub-fund of the Appian Investments ICAV, and has been authorised by the Central Bank Of Ireland as a Limited Liquidity Qualifying Investor Alternative Investor Fund. The fund is only open to Qualifying Investors (please see prospectus). The above disclaimer and limitations of liability are applicable to the fullest extent permitted by law, whether in Contract, Statute, Tort (including without limitation, negligence) or otherwise.

12 For further information contact: Kevin Menton Director Appian Asset Management 42 Fitzwilliam Place, Dublin 2 Tel: kevin.menton@appianasset.ie Appian Burlington Property Fund