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