APIL Industrial Fund No.1 grows with fifth acquisition

The APIL Industrial Fund No.1 continues to grow, with the acquisition of its fifth asset, an industrial property located at 29-37 Wilkins Road, Gillman SA for $7.4M.

APIL (Australasian Property Investments Limited) was started in 2001 and has established 28 syndicated funds with $1.0 billion of properties.

APIL's latest offering, the APIL Industrial Fund No.1, is targeting a diversified portfolio of $125M of industrial assets by December 2020. The acquisition of the Gillman SA property increases the portfolio to $67.5M spread across five assets in SA, WA and QLD. All the industrial properties are fully leased with the Fund enjoying a long weighted average lease expiry (WALE) of 12.4 years (by income).

To fund the Gillman SA acquisition, the Fund is open to new investments. It is seeking to raise $4.8M through the offer of 4.8M units at $1.00 per unit. If there are excess applications, the Fund may also accept oversubscriptions.

The Manager is forecasting distributions of 7.5% in FY21 and FY22, at the mid point of the Fund's targeted range of 7.0% - 8.0%.

Core Property has reviewed the investment offering and 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.