APN REGIONAL PROPERTY FUND
Office properties
Sometimes patience can be the most underrated of all virtues.
We are always on the look-up for assets that have multiple catalysts for a positive re-rating.
Sometimes patience can be the most underrated of all virtues.
We discovered this listed fund in early 2013. It only had one asset, a premium office property in Newcastle, NSW (90 minutes north of Sydney). The location, the list of tenants & the lease schedule was the most impressive in Newcastle.
What made us interested in this asset, was that it traded at a steep discount to its reported net asset value (NAV). Also, depending on the price we could purchase the fund at, the cash yield was over 8% per annum. At times, we were able to purchase this asset at up to a 15% discount to NAV.
23.06 % P.A.
TOTAL GROSS RETURN
4.1 YEARS
HOLDING PERIOD
Over the past few years, the NAV has increased to $1.4055 per unit. On selling the APN Regional Property fund, this realised a 136.62% average total return net to client. This equated to a 23.06% return per annum for the holding period.
With our patient approach, the value to investors was realised. While we waiting for this to happen, we were paid handsomely via substantial distributions for our patience.
*The performance was calculated as at 31 March 2019. Past performance is not necessarily indicative of future performance.