Commercial Property Income Fund （CPIF）
The Commercial Property Income Fund (CPIF) is a wholesale and retail pooled investment fund that will invest in redeemable preference units (RPUs) in a number of mixed commercial property developments special purpose vehicles (SPVs) to ensure risk is spread and returns maximised.
Pooling the investment will ensure that exposure is limited and non traditional property investors (i.e. Retail) have access to wholesale type investments
The Commercial Property Income Fund aims to invest predominantly in the post development approval (DA) stage of our commercial property projects
Our key investment areas include:
Hospitality and Tourism
There are currently 9 sites in development through our property division with a further 10 expected over the next 12 months
Aims to achieve investment returns of 12% p.a*(after fees) on a monthly basis.
Short to Medium term investment horizon – Minimum 12 months
Ideally invest for > 2 years for consistent returns.
$20,000 minimum amount
No fixed term on your investment.
Offers retail investors exposure to non traditional wholesale property investments
Funds invested in multiple projects, spreading risk across multiple sites.
Funds invested in independent trust structures.
An extensive due diligence and project selection process.
Access to well credentialed property specialists.
* Your investment and earnings are not guaranteed. The fund invests in a number of commercial property projects so returns could fluctuate and the value of your investment may vary.
+ HOW DOES THE CPIF WORK?
- PE Capital will invest its funds into redeemable preference units (RPUs) across multiple property projects special pupose vehicles (SPVs), with an expectation that there will be up to 15 projects run each year.
- Funds will be invested into RPUs across multiple commercial property SPVs managed by PE Capital in the post Development Approval (DA) stage. This is slightly less risky than the pre DA stage as the property has successfully transitioned through the approval stage, should be worth more and senior debt will be more readily available.
- The CPIF will endeavour to spread the investment across multiple SPVs, to not only spread the risk but to also ensure liquidity and stability for investors.
- This fund will be directed towards retail and wholesale investors who are seeking a higher return, understand the risks involved and possibly have a portfolio but with no present exposure to mixed use commercial property (as defined by the Corporations Act 2001).
- PE Capital will manage the investment triggers and parameters to ensure that the mix between security and return is optimised.
- The CPIF accepts both retail and wholesale investors, however please note that there is different application processes for each of these categories.
+ HOW WILL WE ENSURE A COMPETITIVE RETURN WHILE MITIGATING RISKS ?
As with all investments, higher returns carry more risk, which are outlined in the Information Memorandum.
PE Capital will seek to mitigate these risks through:
- The surety of a General Security Agreement and a rated and listed fund with ASIC.
- Funds will be invested in an independent trust structure across multiple asset classes and property projects.
- An extensive internal and external due diligence process that will specifically select high value commercial property projects in growth corridors where infrastructure is required.
- Commitments from blue chip tenants who are looking to increase their footprint and who commit for substantial 10 to 15 years terms.
- A transparent operating model where the client is kept well informed and understands the process from start to finish.
- Having access to an experienced management team that has been successfully operating for over 28 years.
+ Why Commercial Property ?
- Commercial property historically has been more stable and in demand from investors
- Commercial property allows investors more options, for example to prior to development approvals (DA) and/or construction being completed, sell once the property has been completed or hold on to the asset and generate an ongoing income
- Commercial property is generally easier for developers to deal with as you are dealing with a few blue-chip tenants who are interested in leasing for a long time, as opposed to many individual buyers/ investors who may not have the financial backing of a large corporate tenant and therefore may have a higher default risk
- Commercial tenants commit earlier and for longer periods which provide investors with stability and certainty of rental income