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Artifex ACT Government 1 Trust

Canberra government office fund with 20-year lease targeting 5.25%+ p.a. distributions

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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.

Core Property Rating - Recommended

Fund Status - Open

This publication is not and should not be construed as, personal financial product advice, an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. Any opinion contained in the Report is unsolicited general information (general financial product advice) only. Read more here.