Core Property has reviewed the KM Property Community and Social Services Property Fund, a newly launched unlisted property fund by KM Property Funds.
The Fund is an open ended fund that invests in a diversified portfolio of properties that provide community and social services. A key focus of the Fund is to seek out properties that are integral to the social infrastructure of communities, such as childcare centres, medical centres, affordable or community housing and neighbourhood retail properties, which offer a level of resilience for investors.
The Fund's initial portfolio highlights this investment strategy, consisting of three childcare centres and one childcare/healthcare property. The properties are valued at $32.8M, with a long Weighted Average Lease Expiry (WALE) of 14.6 years.
The Fund is open-ended with units issued on a daily basis. The current issue price is $1.00 per unit and the Manager is targeting distributions of 5.0% - 5.5% p.a.
Core Property has rated the Fund as RECOMMENDED.