Core Property reviews government tenanted office fund by KM Property Funds

Core Property has reviewed the Thynne Street Property Fund by KM Property Funds.

The Fund provides an investment in a modern office building in the suburb of Bruce, ACT. The Property provides a highly secure rental income, being fully leased to a Commonwealth government agency on a long term lease.

The investment metrics include:

  • Purpose built office building, 100% occupied by the Australian Institute of Health and Welfare.
  • Fixed 3.0% p.a rental increases with lease expiry in June 2029 (weighted average lease expiry 9.2 years).
  • A distribution yield of 7.0% p.a. (pro-rata) to 30 June 2020, increasing to 7.1% p.a in FY21.
  • A fully secure rental income over the 6.2 year term of the Fund.

Core Property has rated the Fund as RECOMMENDED, however notes that macroeconomic uncertainty as a result of COVID-19 may pose a risk to future valuation and capital returns.

Update 13 May 2020: The Fund is fully subscribed and is no longer accepting new investments.