APN Regional Property Fund

The APN Regional Property Fund (ARSN: 110 488 821) is an unlisted direct property fund which invests in a portfolio of office properties located in Newcastle, NSW.

Open for new investors


1. Forecast distribution rates are not promised nor guaranteed, and are calculated in accordance with the assumptions outlined in the Product Disclosure Statement dated 4 February 2019. Returns are not guaranteed.
2. As at 30 September 2019.

AT A GLANCE

Units are available to purchase

For any enquiries on how to purchase new or additional units, please contact APN Property Group on 1800 996 456 or email us at apnpg@apngroup.com.au.

Commencement date
28 October 2004
Investment type
Direct property fund with liquidity event planned in 2024
Management fee
0.65% of Gross Asset Value per annuum
Properties
Two A-grade office buildings, each seven levels, located in the heart of Newcastle's CBD. 26 and 28 Honeysuckle Drive, Newcastle NSW.
Major tenant
Property NSW, Sparke Helmore Lawyers, QBE and Fairfax Media Limited, Yancoal Aus Pty Ltd
Weighted average lease expiry
3.3 years by income (as at 30 September 2019)
Property value
$51.8 million (Independent valuation as at 31 January 2019)
Net Asset Value
$1.4 history
Investment term
5 years
Distributions
Forecast distribution yield of 7.10% per annum for FY20*
Distribution frequency
Paid quarterly (Distributions will be paid monthly from 1 January 2020)
Gearing
34%
Liquidity
Liquidity event planned in 2024

* Forecast only, distributions and returns and performance are not guaranteed – The forecast remains subject to a number of uncertainties and assumptions.

The APN Regional Property Fund offers investors the opportunity to invest in Australia’s strongest non-metro office market at an attractive entry price. 

The two A-grade office properties, that have recently undergone a major asset enhancement program, are located in the fast-growing region of Newcastle with access to excellent transport options. The buildings are well leased to Government and national corporate tenants, underpinning stable and secure rental income.

Newcastle – fast growing region


3. January 2019, Colliers International.
4. ABS REI NSW Newcastle Regional Plan 2036.

Key highlights

  • Attractive valuation, supporting strong capital growth potential
  • No stamp duty or asset acquisition costs
  • 164 secure car parking spaces and close to bus, train and light rail
  • New state of the art end of trip facilities, bathrooms and foyer refurbishments
  • Energy efficient buildings with estimated NABERS rating of 4.5 stars
  • Conservatively geared at 34% (target range of 30-45%)
  • Rental growth, with 3-4% annual fixed rent reviews
  • Managed by a specialist property manager with more than 14 years local Newcastle knowledge

Tenant profile5

5As at 30 September 2019

Fund total return6

APN has managed the Fund since 2004 and has delivered a total return of 9.4% pa since inception.

6The above graph reflects performance to the quarter end on 30 September 2019. 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.

Important information for existing investors

Risks
As with all investments, an investment in the Fund will be subject to risks, some of which are outside the control of the Responsible Entity and the Directors. All investments are subject to varying degrees of risk and investments generally go up, as well as down, in value. Asset classes perform differently at different times and have different risk characteristics and volatility. When you consider an investment in the Fund, you should consider your personal risk tolerance. Past performance is no guarantee of future performance. The Responsible Entity does not guarantee the income of the Fund or the return of capital to investors. It is important that you read the Product Disclosure Statement in full before deciding whether to invest and consult your financial adviser, stockbroker or other professional advisers should you require advice or clarification.

Disclaimer
This information has been prepared by APN Funds Management Limited (ACN 080 647 479, AFSL No. 237500) (the “Responsible Entity”) as the responsible entity and issuer of the financial products in respect of APN Regional Property Fund (ARSN 110 488 821). Information contained is current as at 4 February 2019 and does not constitute financial product advice and does not purport to contain all relevant information necessary for making an investment decision. It is provided on the basis that the recipient will be responsible for making their own assessment of financial needs, will read the Product Disclosure Statement in full and will seek further independent advice about investments as is considered appropriate. This webpage does not constitute an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, nor does it form the basis of any contract or commitment. It is important that you read the Product Disclosure Statement in full before deciding whether to invest and consult your financial adviser, stockbroker or other professional advisers should you require advice or clarification.

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