Core Property has reviewed the Realside Ovest Industrial Core Fund No.1, a closed-ended unlisted property fund that invests in a portfolio of 6 industrial assets in metropolitan Perth WA. The Fund is managed by Realside Property Pty Ltd (Realside), a specialist property investment manager with over $1.26 billion of assets under management.
The Fund was established in 2021 as an industrial development fund and has delivered an IRR of 16.5% p.a. for original investors. Having reached its 5-year liquidity event, the Fund has been re-opened to allow new investors to acquire units, which will also allow existing investors to redeem their investments.
New units are being offered at the prevailing unit price, with new investors not being charged a Buy Spread, or any property acquisition costs or stamp duty costs.
- The Fund provides an opportunity to invest in a portfolio of 6 industrial assets in metropolitan Perth, including 3 award winning industrial developments. The portfolio is 100% occupied with a WALE of 9.1 years and has been stabilised as a Core investment strategy.
- The Perth market is one of the strongest industrial markets in Australia. The portfolio is estimated to be rented at ~14% below market rents, provided the potential for future income and valuation uplift.
- The Trustee is targeting distributions of 11.1 cents per unit p.a., which equates to a yield of 7.0% p.a., for the next 5-years. The Trustee is targeting an IRR of 13.0% p.a. over 5-years.
The Trustee is seeking to raise up to $46.4M through the issue of up to 29.2M units at $1.59 per unit. The Offer is available to wholesale investors with a minimum subscription of $100,000.
Core Property has rated the Fund as RECOMMENDED.