Auslink Property Trust No.2 expands government leased portfolio

Core Property has reviewed the latest offering from the Auslink Property Trust No.2, by Castlerock Property.

The Fund invests in a portfolio of 11 office properties located across Australia, leased to Federal and State Governments. The Fund metrics are strong with 98% occupancy and a Weighted Average Lease Expiry of 7.8 years.

Around 95% of the fund's rental income is sourced from government tenants which in turn supports predictable and sustainable distributions over the medium to long term. The Manager is forecasting a FY22 distribution yield of 7.2%. The Fund has delivered a strong return of 12.5% p.a. since it launched in 2014.

The Fund is open to new investment with the Manager seeking to raise up to $90M to fund the latest acquisition.

Core Property has rated the Fund as RECOMMENDED.