APIL Essential Retail Income Fund

Non-discretionary focussed retail property fund targeting 6.0% - 6.5% p.a. distributions

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Core Property has reviewed the APIL Essential Retail Income Fund, a retail property fund managed by APIL. 

The Fund is targeting a $100M portfolio of retail properties with a stable profile and secure income stream. Properties are expected to have a high tenant appeal, with a focus on non-discretionary retail categories that are "essential" in nature, providing a fair level of income certainty for investors.
The Manager is looking to establish the Fund through the offer of 11.6M units, priced at $1.00 per unit, with an initial offer period of 30 March - 30 April 2021.

The Fund's initial asset, the Coolbellup Village Shopping Centre, WA, offers a stable income profile:
  • The Woolworths supermarket and pharmacy (Optimal Pharmacy Plus) account for 89% of rental income.
  • Since opening in November 2018, the Woolworths supermarket has delivered above average sales and above average sales growth.
  • The Manager is targeting initial distributions of 6.0% p.a., 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.