News and Announcements
Sirona Capital Launches its Latest Real Estate Income Fund
- Published February 19, 2015 2:29PM UTC
- Publisher Wholesale Investor
- Categories Company Updates
Wednesday, 18 February 2015
Sirona Capital (Sirona) has launched its 7th Fund and the latest in a series of real estate income funds, the Margaret River Shopping Centre Fund (Fund).
Sirona is seeking to raise $9.00 million to acquire the near new Margaret River Shopping Centre (Centre).
The key investment highlights of the Fund include:
- Attractive investment returns – forecast income distribution of 10.9% p.a. (average p.a and post fees, pre-tax) over a 7 year term, with distributions paid quarterly
- Strategic location, strong demographics – strategically located in the heart of the Margaret River townsite and the renowned viticultural and tourism region
- Opportunistic acquisition – the Centre was opened in June 2013 and is being acquired at a 40% discount to replacement cost and 9.3% yield on current fully-leased net operating income
- Gross income guarantee – acquisition terms include a gross income guarantee from the vendor on the vacant speciality shops in the Centre, which underwrites the fully let income position through to 30 June 2017
- 20 year lease to Woolworths – over 60% of the Centre’s rent is underwritten by a new 20 year lease to Woolworths
- Strategic market position – the Centre is the only integrated supermarket/specialties centre in the Margaret River region and includes 204 under croft car bays and at 3,800m2 Woolworths is the largest supermarket in the town, with the competing supermarkets operating out-dated, smaller format stores with restricted parking and access
- Value add opportunity – Sirona has a well developed leasing strategy for the vacant specialties, to attract quality national and local retailers well inside the vendor guarantee’s expiry
- Underwritten and co-investment – Sirona has underwritten 83% of the Offer and will co-invest a substantial amount in the Fund
The Fund has an expected term of 7.0 years.
Please find attached a copy of Sirona’s Margaret River Shopping Centre Fund flyer for your consideration. A full investment information memorandum is available on request.
I commend and welcome your interest in the Fund.
Kind regards
KELVIN FLYNN
Managing Director
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