Australian Unity Diversified Property Fund
About this Fund
|FUND MANAGER||Australian Unity Property|
The investment strategy of the Fund is to acquire, manage and grow a diversified property portfolio of offices, convenience retail shopping centres and industrial properties in Australia.
|INVESTMENT PROFILE||The Fund seeks to provide a stable income stream that is at least 1% p.a. above the average Commonwealth Government 10-year bond yield, calculated on a rolling basis over the previous five-year period, and a total return (income and capital growth) above the Benchmark.|
|BENCHMARK||MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index|
|FUND SIZE||MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index|
|NO. OF HOLDINGS||8|
Benefits of investing in the Australian Unity Diversified Property Fund
This Fund is designed for investors who want:
This Fund is typically suited to investors who:
About the Fund
The Fund is an unlisted property fund that owns properties across Australia, diversified across retail, office and industrial sectors.
The Fund's tenant base is diverse and includes many of Australia's most successful companies and brands.
The Fund's diversification strategy aims to provide investors with stable and consistent income through periods of economic change.
Features of the Fund
How the Fund works
Investor applications are pooled with borrowings from lenders to purchase, maintain and/or redevelop direct property and related assets for the Fund.
Rent from the Fund's properties and income earned on its other assets generate income. This income is used to meet the interest expenses on the Fund's borrowings, management fees, property-related expenses and appropriate ongoing Fund expenses. We may also retain some income as a provision for items such as future expenses or capital requirements. Once these costs and provisions are met, the remaining income is distributed to investors.
The capital growth (or loss) on your investment is largely attributed to revaluations of the Fund's properties and changes in value of other assets including interest rate derivatives and the level of borrowings held by the Fund.
We aim to deliver:
How we invest your money
The Fund predominantly comprises Australian commercial assets including directly owned properties (such as offices, shopping centres and industrial properties), unlisted property trusts and listed Australian REITs. A summary as at 30 June 2019 is provided in the table on page 5 of the PDS. A full list of properties and investments in listed Australian REITs and unlisted property trusts is set out in the table on page 9 of the PDS.
The investment strategy of the Fund is to acquire, manage and grow a diversified commercial property portfolio of offices, shopping centres and industrial properties in Australia. Properties are predominantly situated in capital cities and major regional and metropolitan centres although the Fund may invest outside these areas if appropriate.
The Fund may also invest in property trusts (i.e. listed and unlisted managed investment schemes) including those managed by Australian Unity provided the proposed investment meets the Fund's investment objective.
Diversification of properties is sought to provide the portfolio with a more consistent source of income across variability in the economic cycle, or through times of upgrading and developing certain properties.
Diversification occurs at different levels including by property type, geographic location, tenancy mix, lease terms and size of properties.
New property developments may be considered, with a view to retaining ownership in the medium term. Speculative development is not part of the Fund's strategy.
We will look to sell assets where we believe it is appropriate for the Fund and investors. We consider a range of factors including but not limited to: