Investors drawn to low-key commercial assets<\/p>\n\n\n\n
Property floats and capital raisings are storming back with more than $1bn of equity raised in a spate of deal-making over recent weeks.<\/p>\n\n\n\n
In the latest play, property company Real Asset Management Group raised $357m for a new essential services fund, focused on neighbourhood shopping centres and medical assets, with both areas tipped to grow.<\/p>\n\n\n\n
Centuria Capital fund recently raised $300m to buy eight warehouses and Industria REIT tapped the market for $350m as it bought assets including a slice of Perth\u2019s Jandakot Airport.<\/p>\n\n\n\n
The new RAM Essential Services Property Fund will list this month with a market capitalisation of $521.1m after completing a bookbuild last week.<\/p>\n\n\n\n
It will initially own 33 properties worth $706.3m and the expected investment yield for investors is 5.7 per cent.<\/p>\n\n\n\n
But that is expected to grow as both areas are taking off and the properties have in-built growth opportunities via a value-add development pipeline on the portfolio\u2019s existing assets.<\/p>\n\n\n\n
Its most valuable properties include the Coomera Square Shopping Centre in Queensland and Mayo Private Hospital in New South Wales.<\/p>\n\n\n\n
RAM Australia chief executive Scott Kelly said the listed fund would give investors unique exposure to high-quality medical real estate, an asset class that is just emerging on the ASX, as well as essential retail assets, both of which are supported by favourable longer-term trends.<\/p>\n\n\n\n
\u201cThe strong defensive income profile of the fund was highlighted by strong tenant cash collections during the Covid crisis, which severely impacted non-essential sectors,\u201d he said.<\/p>\n\n\n\n
\u201cThe fund will be actively managed and grow through both additional investments in medical space and the low-risk development pipeline.\u201d<\/p>\n\n\n\n
Mr Kelly quipped that the fund specialised in \u201cboring\u201d assets and had been buying non-discretionary retail centres for years.<\/p>\n\n\n\n
They now suited investor requirements more than ever, he said.<\/p>\n\n\n\n
\u201cIn a post-Covid environment with record-low interest rates and an ageing population, people are just desperately yearning for yield,\u201d Mr Kelly said.<\/p>\n\n\n\n
RAM head of real estate Will Gray predicted a boom in small centres had years to run as more capital tried to get into the area and the medical side would also grow.<\/p>\n\n\n\n
\u201cI think the healthcare space is going to attract a lot of demand,\u201d he said, noting investors were rebalancing out of CBD offices and larger retail assets.<\/p>\n\n\n\n
The fund board includes property industry veterans Greg Miles and Bryce Mitchelson along with ex-CBA executive Marianne Perkovic as non-executive directors.<\/p>\n","protected":false},"excerpt":{"rendered":"
Investors drawn to low-key commercial assets Property f […]<\/p>\n","protected":false},"author":1,"featured_media":25197,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[8],"tags":[],"post-type":[],"class_list":["post-28491","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-in-the-media-zh-hans"],"acf":[],"yoast_head":"\n