601 Coronation Drive Fund

Transcription

1 60 Coronation Drive Fund Investor Update For the Quarter Ending 3 December 207 Fund Manager Capital Property Funds Pty Limited ACN Responsible Entity One Managed Investment Funds Limited ACN AFS licence no

2 60 CORONATION DRIVE FUND UPDATE Capital Property Funds Pty Limited (the Fund Manager) is pleased to provide the December 207 Quarter Investor Update for the 60 Coronation Drive Fund ARSN (the Fund). This and future updates on the Fund will be placed on our website: FUND HIGHLIGHTS Quarterly distributions to 3 December 207 were paid on 8 January 208. Approximately 2.02 cents per unit, equating to per annum annualised, was paid to unitholders who held units prior to October 207. Unitholders who acquired units after October 207 were paid distributions on a pro rata basis that equated to per annum annualised; The Fund s gearing was 52.3% and the Loan to Valuation Ratio was 55.0% as at 3 December 207; The leasing agents continue to search for tenants for the ground floor and level 4 vacant suites; The installation of an end of trip facility is under evaluation; The independent valuation of the Property as at 6 July 206 was $45,200,000; Net Tangible Assets (NTA) per unit was $0.88 as at 3 December 207 ($0.87 ignoring the rental guarantee); and Sale of the Underwriting Units has been completed and the Fund is closed for further applications. 2

3 FINANCIAL POSITION The following table summarises the key information for the Fund s financial position as at 3 December 207. TOTAL ASSETS $ ,499 NET ASSETS $ 000 2,957 DEBT - PROPERTY LOAN $ ,860 PROPERTY LOAN TO VALUATION (LVR) % 55.0 LVR COVENANT % 55.0 FUND GEARING % 52.3 UNITS ON ISSUE ,064 NTA PER UNIT $ 0.88 DISTRIBUTIONS PAID FOR DECEMBER 207 QUARTER cents 2.02 DISTRIBUTION YIELD (ANNUALISED) % 8.00 For Units held before October 207. Investors who acquired Units after this date are entitled to a pro-rata distribution from the allotment date. 3

4 LEASING UPDATE Leasing Strategy As previously advised, the Fund Manager subdivided the vacant suite on Level 4 into 2 suites and installed a speculative fit-out to one of those suites. We will also consider subdividing the remaining ground floor areas to create smaller suites to meet tenant demand which is higher for suites of less than 300sqm. This initiative has generated tenant enquiries. The leasing agents (CBRE and Tewksbury Commercial) continue to search for tenants for the ground floor and level 4 vacant suites. Occupancy As at 3 December 207, 60 Coronation Drive s occupancy was 79% (by area) and 96% income producing due to a rent guarantee provided by the Vendor over part Ground Floor and part Level 4. Weighted Average Lease Expiry The weighted average lease expiry (WALE) by income, including the rental guarantee, was approximately 3.5 years as at 3 December 207. Tenant Diversity Tenant diversity in the building as at 3 December 207 was as follows: Top 4 Tenants by Income INDUE 28.% JUMBO INTERACTIVE 20.3% ARTHUR J. GALLAGHER 9.% QUEENSLAND COLLEGE OF TEACHERS 6.4% Including the vendor rental guarantees Top 4 Tenants by Gross Lettable Area INDUE 25.9% JUMBO INTERACTIVE 9.2% ARTHUR J. GALLAGHER 7.6% QUEENSLAND COLLEGE OF TEACHERS 6.6% 4

5 END OF TRIP FACILITY We are investigating the installation of an end of trip (EOT) facility incorporatiing showers and toilets to be located in the car park. EOT facilities cater for occupants who cycle or walk to work and are increasingly becoming an industry standard within A grade office buildings. VALUATION The following provides a summary of the independent valuation obtained by the Fund s senior lender at the time the Property was purchased. VALUATION $45.2m VALUATION DATE 6 July 206 VALUER CBRE CAPITALISATION RATE 7.75% The summary is provided on a non-reliance basis and included for information purposes. DEBT The following table provides a summary of the Fund s borrowings as at 3 December 207. Facility Limit $m Drawn Amount $m Undrawn Amount $m Expiry Date Interest Rate p.a. Tranche A - $22.6m $22.60m $0.0m 2 August % (Fixed) Tranche B - $4.52m $2.26m $0.0m 2 August % (Floating) Total $24.86m $0.0m $2,260,000 of Tranche B debt has been repaid reducing Tranche B debt to $2,260,000 and total debt to $24,860,000 The weighted average cost of the debt for the Fund is approximately 4.40% per annum. The Fund s gearing level was 52.3% as at 3 December 207 which is at the lower end of its long-term target of 50-55%. 5

6 DISTRIBUTIONS The distribution for the period from October to 3 December 207 was paid on 8 Janauary 208. The distributions paid to date are as follows: Period 2 August - 30 September 206 December 206 Quarter March 207 Quarter June 207 Quarter September 207 Quarter December 207 Quarter Distribution Paid (cents per unit) Distribution Paid (annualised yield) Total to Date.2 For applications received before the start of the Peiod. Applications received after the start of the Peiod are entitled to a pro-rata distribution from the allotment date. Investors who held Units before October 207 received approximately 2.02 cents per unit for the December 207 quarter which equates to an annualised income yield of p.a. Investors who acquired Units after October 207 are entitled to a pro-rata distribution, also at an annualised income yield of p.a. This yield is the targeted income distribution outlined in the 60 Coronation Drive Fund Product Disclosure Statement dated 4 June 207. The Fund will only pay distributions from cash from operations and reserves (excluding borrowings). NET TANGIBLE ASSETS The Fund s net tangible assets (NTA) show the value of the Fund s NTA on a per Unit basis. This amount can be used as an approximate measure of what an Investor could expect to receive per Unit held (before selling costs). The NTA (including the benefit of the vendor s rental guarantee) is calculated as follows: NTA = (Net assets intangible assets +/- other adjustments) (Number of Units on issue) NTA per Unit = $2,957,5 25,063,95 = $0.88 per Unit ($0.87 ignoring the rental guarantee) FUNDRAISING As previously advised, the Fund recently reopened for applications to facilitate the sale of the Underwriting Units. Investors were able to subscribe for new Ordinary Units through a Product Disclosure Statement dated 4 June 207. The Underwriting Units were sold prior to 3 December 207 and the Fund is now closed for further applications. 6

7 Contacts Contact the Fund Manager for: Management of 60 Coronation Drive Fund New investment opportunities Capital Property Funds Pty Limited Suite 2, Mezzanine Level, 50 Margaret Street, Sydney NSW 2000 Telephone: (02) Contact the Registry for: Enquiries regarding your Unitholding Distributions Changing contact details One Registry Services Pty Limited PO Box R479, Royal Exchange NSW 225 Telephone: (02) IMPORTANT INFORMATION This report has been prepared by Capital Property Funds ACN for general information purposes only, without taking into account any potential investors personal objectives, financial situation or needs. This information consists of forward looking statements which are subject to known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Fund to be materially different from those expressed or implied. Past performance is not a reliable indicator of future performance. Neither this document nor any of its contents may be used for any purpose without the prior consent of Capital Property Funds. All figures stated herein are as at 3 December 207 and in Australian dollars unless otherwise stated. One Managed Investment Funds Limited (ACN ) (AFSL ) is the responsibility entity of the Fund (OMIFL). The information contained in this document was not prepared by OMIFL but was prepared by other parties. While OMIFL has no reason to believe that the information is inaccurate, the truth or accuracy of the information contained therein cannot be warranted or guaranteed. Anyone reading this report must obtain and rely upon their own independent advice and inquiries. Investors should consider the product disclosure statement (PDS) issued by OMIFL before making any decision regarding the Fund. The PDS contains important information about investing in the Fund and it is important investors obtain and read a copy of the PDS before making a decision about whether to acquire, continue to hold or dispose of units in the Fund. You should also consult a licensed financial adviser before making an investment decision in relation to the Fund. A copy of the PDS dated 4 June 207 and RG97 website notice update dated 26 September 207 and continuous disclosures may be obtained from or 7