APN Nowra Property Fund targets 7.8% distributions

Core Property has reviewed the "APN Nowra Property Fund", the latest unlisted property fund from APN Funds Management.

The Fund is a 5 year unlisted property fund investing in a large format retail property located at 198 Princes Highway South Nowra NSW.

The Property was constructed in 2016 for the Masters hardware business. Following Woolworths' exit of the Masters business, the lease was acquired by Home Consortium with Woolworths providing a rental guarantee until 2031. Whilst the Property is unoccupied, Home Consortium is actively pursuing repositioning strategies at the site.

The Fund enjoys a number of attractive features:

  • An initial NTA of $1.05 per unit
  • Targeted FY19 distributions of 7.8% p.a. (annualised) by the Manager
  • Annual rental increases of CPI or 3.5% (whichever the lesser).

The investment is open to wholesale investors only, with a minimum investment of $100,000.

Core Property has rated the Fund as RECOMMENDED.