The APIL Industrial Fund No.1 continues to grow, with the acquisition of its fourth asset, an industrial property located at 30 Brickworks Place, Darra QLD for $9.2M. The property is currently fully leased to Australian Rural Independent Retailers ("AIRR"), a subsidiary of ASX-listed Elders Ltd (ASX: ELD).
APIL (Australasian Property Investments Limited) was started in 2001 and has established 28 syndicated funds with $1.0 billion of properties.
APIL's latest offering, the APIL Industrial Fund No.1, is targeting a diversified portfolio of $125M of industrial assets by December 2020. The acquisition of the Darra QLD property will get the Fund about half way there, with a portfolio size of $60.1M spread across four assets in SA, WA and QLD. All the industrial properties are fully leased with the Fund enjoying a long weighted average lease expiry (WALE) of 13.7 years (by income).
To fund the Darra QLD acquisition, the Fund is open to new investments. It is seeking to raise $4.6M through the offer of 4.6M units at $1.00 per unit. If there are excess applications, the Fund may also accept oversubscriptions.
The Manager is forecasting distributions of 7.5% in FY21 and FY22, at the mid point of the Fund's targeted range of 7.0% - 8.0%.
Core Property has reviewed the investment offering and has rated the Fund as RECOMMENDED, however notes that macroeconomic uncertainty as a result of COVID-19 may pose a risk to future valuations and capital returns.