Core Property reviews the Artifex ACT Government 1 Trust

Core Property has reviewed the Artifex ACT Government 1 Trust, an unlisted property fund that invests in an office property with a secure government tenant on long term lease. The Fund is managed by Artifex Property, a boutique manager focused on asset management, which has been involved in $1.7B of commercial property transactions since 2017.

The Fund provides an opportunity to invest in “Allara House”, 48 Allara Street, Canberra Civic, ACT. The Property forms part of the Finlay Crisp Centre, a landmark building complex in the Canberra Civic Precinct. An extensive capital works program was recently undertaken, which has resulted in a new 20-year lease to the ACT Government.

The Fund offers a high level of income stability, underpinned by a secure government tenant combined with a long Weighted Average Lease Expiry (WALE). Initial distributions are targeted to be 5.25% p.a. (annualised) in FY22, increasing to 5.35% p.a. in FY23.

The Manager is seeking to raise $42.9M through the issue of 42.9M units at $1.00 per unit. The Offer has a close date of 15 December 2021. The Funds is open to sophisticated and wholesale investors, with a minimum investment of $100,000.

Core Property has rated the Fund as RECOMMENDED.