Core Property has reviewed the Castlerock Government Property Fund, an open-ended registered managed investment trust which invests in well-located offices leased to government departments.
The Fund owns a portfolio of 13 properties located across Australia, leased to Federal and State Governments:
- The fund metrics are strong with 99% occupancy and 96% of the rental income from highly secure long term government tenants.
- The Manager has been proactive in minimising interest rate risks, with long-term hedges on over 90% of debt.
- A track record of growing distributions. Current distributions are forecast at 9.8 cents per unit, equivalent to a 7.8% yield on the current issue price.
The Fund is open ended and is seeking to raise up to $30M through the issue of 23.2M units at $1.26 per unit to fund growth and development. The Offer is available to wholesale and retail investors.
Core Property has rated the Fund as RECOMMENDED