Sirona Capital Launches its Latest Real Estate Income Fund

Wednesday, 18 February 2015

Sirona Capital (Sirona) has launched its 7^th 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