Investor Update - January 2018

We hope that your Christmas and New Year period was an enjoyable and relaxing one. PE Capital had a big last quarter and we’re looking forward to 2018. Here’s what we we’ve been up to and what you should be seeing going forward into the next quarter.

Best wishes,
The PE Capital Team


BUSINESS UPDATE

PE Capital reached several key milestones in the quarter: 

  • Our Y Fund continued to exceed return expectations so we’re quietly confident that our investors will have a very enjoyable 2018
  • Our P3 Fund will soon be available to retail investors, which will significantly grow our distribution network
  • We’ll soon be launching our Y Fund brand, with a standalone website and strong social media presence.
  • We have launched our products with a number of well-known partners so our distribution network will be turbo charged in early 2018.
  • We are well advanced on construction on our Amstel site. See Property News for progress updates.
  • We also  expect to begin construction on two more projects by the end of February 2018 and we have settled on a number of our other sites.

FUND NEWS

Our fund business continues to build momentum with strong inflows into the various PE Capital funds. 

PE Capital has been developing retail capabilities for investors so that they will soon be able ot invest in the P3 Fund. What this means is that investors will no longer need to qualify as a wholesale investor which has two very important ramifications. To be a wholesale investor a client needs either to have $500,000 to invest and/ or be classified as a sophisticated investor which brings with it a set of qualifying requirements. Why this is important is because:

  • Clients will now have access to a direct property fund for a significantly lower initial investment amount
  • Clients will no longer have to qualify to be able to invest in the PE Capital P3 Fund
  • For further information about the funds see the below:

    For more information on the Y Fund: http://www.pecapital.com.au/y-fund

    For more information on the P3 Fund: http://www.pecapital.com.au/p3-fund/


PROPERTY NEWS

The development of stage 1 at Amstel is well advanced and due for completion in the second quarter 2018. Specialty leasing has progressed with a number of nationally recognised tenants committing to the project, resulting in a premium investment.

The forward program includes commencing construction on Thompsons Rd Cranbourne North and Woods Road Truganina in the first quarter 2018 and both are due for stage 1 completion in the third quarter 2018.

As documented in the previous newsletter, Development Applications were lodged on 4 projects, with expectation of approvals in mid 2018.

Our signature project at Springvale has been presented for rezoning at Dandenong Council, with encouraging levels of support from all stakeholders. We are a number of months ahead of schedule and look forward to bringing this exciting project to fruition.


 ECONOMIC & MARKET UPDATE

Keeping an eye on the financial press, not a lot has changed however we see the following in Australia at least for the next quarter:

  • Yields remain low with many economic analysts predicting no official RBA cash rate movement for 2018. It seems that the RBA is concerned that a rate rise could exacerbate a property bubble. Inflation, rates and wage expectations remain subdued.
     
  • Residential property prices in all states except Victoria are starting to slow, however the feel is that this is more a correction (i.e. a price hold).
     
  • Commercial property which is PE Capital's area of expertise continues to stay strong with low yields seen in auctioned mixed use commercial property prices. Please note that low yields mean that high prices have been paid at auction for mixed use property assets, therefore reducing the yield/ return (which is fixed over a period) received by the new owner.

JOIN OUR COMMUNITY

We now have a social media presence via LinkedIn and Facebook so if you’re interested in knowing what we’re upto and the space we play in, feel free to connect via the below links or come and visit us at http://www.pecapital.com.au