APIL Industrial Fund No.1 continues to grow

The APIL Industrial Fund No.1 continues to grow, with the acquisition of its fourth asset, an industrial property located at 30 Brickworks Place, Darra QLD for $9.2M. The property is currently fully leased to Australian Rural Independent Retailers ("AIRR"), a subsidiary of ASX-listed Elders  Ltd (ASX: ELD).

APIL (Australasian Property Investments Limited) was started in 2001 and has established 28 syndicated funds with $1.0 billion of properties.

APIL's latest offering, the APIL Industrial Fund No.1, is targeting a diversified portfolio of $125M of industrial assets by December 2020. The acquisition of the Darra QLD property will get the Fund about half way there, with a portfolio size of $60.1M spread across four assets in SA, WA and QLD. All the industrial properties are fully leased with the Fund enjoying a long weighted average lease expiry (WALE) of 13.7 years (by income).

To fund the Darra QLD acquisition, the Fund is open to new investments. It is seeking to raise $4.6M through the offer of 4.6M units at $1.00 per unit. If there are excess applications, the Fund may also accept oversubscriptions.

The Manager is forecasting distributions of 7.5% in FY21 and FY22, at the mid point of the Fund's targeted range of 7.0% - 8.0%.

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