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AOF1 factsheet

Details: Category: Sample Data-Articles; Published on Monday, 10 December 2012 09:13; Written by Super User; Hits: 245

AOF1 Factsheet

The CIMB-TrustCapital Australian Office Fund 1 (“AOF1”) is a private equity, closed-end real estate fund registered in Singapore. AOF1’s objective is to invest in Grade A and Grade B+ commercial office assets in Melbourne and Sydney, with a secondary focus on Brisbane and Canberra.

Fund Size – AUD161.5M in equity, with another circa AUD300M available for co-investment. CIMB is an anchor investor,

Fund Life – 7 years with a 2 year Investment Period,

Fund’s acquisition criteria:

Occupier Profile - government/government linked tenants, or corporate tenants with strong credit ratings
Only completed and tenanted commercial office buildings. No property development
Initial purchase yield - above 7%pa

Offers low risk and attractive target IRR of 10-15%pa after applicable Australian taxes and management fees. The first close – was on 12 November 2010. Capital will be called on a progressive basis – as and when acquisitions are made, not called upfront in full. Distributions - semi-annual basis. Capital will be returned to investors when the assets are disposed via trade sale or listing

Australian office property is facing a credit crisis and not a property crisis. The Global Financial Crisis has severely impacted access to liquidity. Property funds, in particular unlisted funds, are facing re-financing and redemption pressures. However, property fundamentals of the underlying assets remain strong with long term leases, robust cash flows and occupancies at 90 to 94% in place. The Australian economy is widely regarded as a proxy for Asia and is well placed to benefit from the Asian economic recovery and subsequent boom. Although economic numbers indicate that the Australian economy has turned the corner, Australian commercial office real estate is expected to remain subdued for the next 12 to 18 months. When credit normalises, domestic superannuation funds and investors will return to the Australian commercial office market – providing underlying support for a recovery in prices. There is currently a “once in a generation” window of opportunity to invest in some key Australian commercial office buildings at attractive yields.

Why CIMB TrustCapital?

Part of the CIMB Group – 2nd largest banking group and no.1 Investment Bank in Malaysia.
Highly qualified and experienced Board, investment committee and management team
Independent manager with no legacy assets or debt
Strong value add in terms of acquisition, financing, structuring and exit strategy