Given the performance of office properties in Sydney and Melbourne over the past few years, regional office property may be the last thing on the minds of investors looking for income.

Until, perhaps, they see the figures. Since inception in October 2004, the APN Regional Property Fund has produced a total return of 9.46%¹ a year. In the year to 31 March 2019, that figure was 17.58%.

APN Regional Property Fund performance

The Fund currently offers the opportunity to invest in two A-grade office properties in fast-growing Newcastle, delivering a forecast distribution yield of 7.10%² in FY20.

Yes, that’s Newcastle. The city has good transport links via freeway and rail to Sydney, just 160km south as the crow flies. With spectacular beaches, lakes and national parks within a short, usually traffic-free drive, a 1-bedroom city centre unit can be purchased for less than $400,000³.

From there, you can walk to work, via a host of high-quality cafes, to an A-grade office development that overlooks the harbour at 28 Honeysuckle Drive. Or you could catch the tram. Newcastle is Australia’s strongest non-metro office market and the properties at Honeysuckle Drive are among the best in the city.

APN has also recently executed heads of agreement with two tenants that increases the APN Regional Property Fund’s occupancy from 88% to 96% and Fund Weighted Average Lease Expiry (WALE) will increase from 2.9 years to 3.2 years as at 1 September 2019. That should support the security and stability of the Fund’s income.

Needless to say, investors in this Fund are already aware of Newcastle’s charms. If you’d like to find out more, read the full performance report, visit our website or call 1800 996 456.

This article has been prepared by APN Funds Management Limited (ACN 080 674 479, AFSL No. 237500) for general information purposes only and without taking your objectives, financial situation or needs into account. You should consider these matters and read the product disclosure statement (PDS) for each of the funds described in this article in its entirety before you make an investment decision. The PDS contains important information about risks, costs and fees associated with an investment in the relevant fund. For a copy of the PDS and more details about a fund and its performance click here. To receive further updates and insights from the APN team, sign up for Review, our monthly email newsletter.

^{1.Performance is based on original fully paid units at $1.00. Past performance is not necessarily a guide to future performance. Fund inception October 2004.}

^{2. Annualised distribution as forecast within the PDS dated 4 February 2019.}

^{3. https://www.realestate.com.au/sold/property-unit-nsw-newcastle-126043778}