Core Property reviews the AMP Capital Wholesale Australian Property Fund

Core Property has reviewed the AMP Capital Wholesale Australian Property Fund.

The Fund is the largest diversified unlisted open ended property fund available to retail investors in Australia with gross assets of $2.1 billion.

The Fund invests primarily in direct properties, with ~93% of the portfolio invested in a diversified portfolio of 26 properties across the retail, office and industrial sectors.

Key feature of the Fund include:

  • The portfolio enjoys 96% occupancy and a weighted average lease expiry (WALE) of 4.3 years.
  • Low gearing levels
  • A monthly withdrawal facility with no Buy/Sell spread.
  • Core Property expects FY21 cash distributions to be around 7.24 cpu, implying a cash yield of around 5.9%.

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.