APN Property Group announced the launch of the APN Global REIT Income Fund to provide investors the opportunity to invest in a diverse portfolio of global listed Real Estate Investment Trusts (REITs), managed by an experienced team of investment managers in Australia and the United States.
Reflecting strong demand from advisers and direct investors for consistent income returns underpinned by real property assets, the Fund aims to deliver an attractive distribution yield and lower risk than the market.
Tim Slattery, CEO said: “We’re very excited about the launch of the Fund, which is a natural extension of our domestic and Asian REIT investment capabilities developed over 23 years. While timing the launch for a new fund is often challenging we have seen the APN AREIT Fund grow to over A$1 billion from starting out in what was a difficult market environment in early 2009. We believe the current market conditions suit our active, income focused approach and present an attractive entry point for long term investors.”
Pete Morrissey, CEO Real Estate Securities said: “The APN Global REIT Income Fund will present a unique offering in the market by focussing on recurring rental income generated from quality real assets across a diverse range of property sectors. These assets include mobile phone towers, warehousing, logistics and healthcare real estate illustrating the breadth and depth of markets overseas which are not readily available to investors in Australia. Adopting our “property for income” philosophy, we are aiming to deliver strong and regular distributions within an initial starting range of 4.00 – 5.00% pa.
The management of the Fund draws on APN’s experience and track record investing in REITs domestically with the APN AREIT Fund (established January 2009), and offshore with the APN Asian REIT Fund (established July 2011). These funds are generating a current running yield1 of 6.50% and 6.22% respectively, with distributions paid monthly, whilst delivering a total return of 10.13% pa and 12.02% pa respectively since inception to 30 June 20202 .
APN’s investment team has significant experience managing through various property cycles and expanded global coverage.
Mr Morrissey commented: “We are pleased to have David Kruth join our team as Regional Adviser for North America. David comes with exceptional REIT management experience having built an impressive track record with Goldman Sachs and Alliance Bernstein amongst other leading organisations. David also currently lectures at the Columbia University Masters Program in Real Estate Development & Investment. This appointment expands APN’s REIT coverage across Australia, Asia, United Kingdom, Europe and North America.”
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