The APIL Essential Retail Income Fund is an unlisted property fund that invests in retail properties with a stable tenant profile in order to provide a secure income stream. Properties have a focus on non-discretionary retail categories that are "essential" in nature, providing a fair level of income certainty for investors. The Fund is managed by Australasian Property Investments Limited ("APIL")
The Fund is looking to acquire its second property, the Joondalup Commercial Centre in Joondalup WA. The Property is a large format retail centre, anchored by an Officeworks retail store, a discount department store (the Reject Shop) and four speciality stores.
December 2021 Update: The Fund has been oversubscribed for the December 2021 equity raising and has been closed for new subscriptions. The Manager expects the Fund to reopen for investment in 2022 as new acquisitions are added.
The acquisition follows the Fund's recent acquisition of the Woolworths anchored Coolbellup Village Shopping Centre, in Coolbellup WA. Together, the two properties are valued at $37M, with the Manager targeting further acquisitions to build a $100M portfolio.
The Manager is seeking to raise $9.4M through the issue of 9.4M units at $1.00 per unit. The Offer has a close date of 20 December 2021.
The Manager is targeting FY22 distributions of 6.0% p.a., paid monthly, with distributions expected to be in the range of 6.0% - 6.5% as additional properties are acquired.
Core Property has rated the Fund as RECOMMENDED.