Stirling targets 9.0% distribution yield from updated Junction Fair fund

Core Property has reviewed the Stirling Junction Fair Shopping Centre Fund, an unlisted property fund by Stirling Property Funds Limited. The Fund has been relaunched in response to COVID-19 disruptions.

The Manager is seeking to raise $24.8M of preferred units, or Class A Preference Units, to acquire the Junction Fair Shopping Centre at The Junction, NSW.

The key features of the Class A Preference Units include:

  • A targeted distribution of 9.0% p.a. in FY21 (targeted average of 9.1% p.a. over 4 years),
  • The Manager is targeting an IRR of 15.7% p.a. based on a 4-year repositioning strategy for the Property,
  • A preferred ranking for capital returns, and
  • An initial NTA of $1.00 per unit for Class A Preference units.

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 valuations and capital returns.

Update 17 June 2020: The Fund is fully subscribed and is no longer accepting new investments