Retail Property Fund - Class A

Fund Details 

About the Fund

The Retail Property Fund is an open unlisted property fund focusing on retail related property investments. It was formed on 28 February 2009 by combining six existing property trusts.

The Fund has a diversified tenant base which includes many of Australia’s most successful and best known brands on long-term leases, covering a broad range of retailing including supermarkets, department stores, specialty shops, homemaker outlets, hardware and service stations.

About Class A Securities

The Retail Property Fund - Class A securities provide enhanced withdrawal opportunities to investors. This is achieved through a separate reserve of cash or similar investments (typically around 20%) from Class A applications received.

Class A securities are open to those investors acquiring units through an IDPS, IDPS-like scheme, masterfund or nominee and custody service.

Class A securities are not available to direct investors.

Investment Objective

The Fund aims to provide investors with a total return (income and capital growth) above the benchmark (Property Council/IPD Australian Retail Property Index), while providing a steady level of income.

It also aims to provide an attractive level of tax advantaged components within the income.

Investment Strategy

The Fund predominantly comprises Australian direct retail property assets. Unlisted retail property trusts may also be used where appropriate to achieve the target level of exposure to suitable properties. Retail sector Australian-REITs may be used to enhance geographic and sectoral diversification; and in conjunction with cash, to support ongoing liquidity and cash flow management.

To provide an enhanced level of liquidity, Class A Securities typically aim to hold 20% of its value separately in a special cash reserve. This level may fluctuate from time to time depending on cash flows.

Of the balance of assets, the Fund typically holds 70-95% of its assets in direct property and unlisted direct property investments. The listed Australian-REIT exposure will typically be small and may range between 0% to 20% of the Fund’s assets. The balance of the Fund’s assets is held in cash and similar investments.

Who is the investment manager?

Australian Unity Investments

Who should invest?

This Fund is typically suited to investors who:

• seek regular income payments
• want a high degree of direct property exposure
• are looking to diversify their existing property portfolio
• have at least a five-year investment outlook

Key benefits

• Solid and reliable income paid quarterly.
• The potential for capital growth over the medium to long-term.
• Access to property investments without the obligations of direct property ownership.
• Access to investment opportunities in retail property that may not otherwise be available to individuals.
• A lower cost of borrowing than that typically available to an individual investor.
• Ability to obtain tax deferred income.
• Greater flexibility to access your investment compared to other direct property investment funds.
• Managed by specialist asset managers with the support of the Australian Unity Group.