Centro is getting a bit sexier to attract more investors.
The highly successful property group yesterday announced improvements to its direct property funds, making them even more attractive and accessible to investors.
According to Centro, the changes are included in the newly released Product Disclosure Statement for both the $2 billion Centro Direct Property Fund and the $1.1 billion Centro Direct Property Fund International.
Centro’s general manager – institutional funds management, Philippa Kelly said Investor support for both funds continues with $250 million raised in the funds during 2006.
She believes the recent changes will assist direct investors, particularly self managed superannuation funds, to access the funds which now have a lower entry threshold and reduced costs.
“Centro’s retail property and funds management experience combine to create quality retail property investment funds that have delivered strong returns from stable income streaand solid growth. Investors are increasingly appreciating the diversification benefits that direct property adds to their portfolios and the recent growth in assets by the DPFI and DPF provides good options in this regard. Investors are also reassured by Centro’s co-investment in the funds, as this aligns Centro’s interests with investors,” Kelly said.
Both funds have delivered strong total returns for 2006, outperforming their benchmarks. The DPF delivered an 18.4% total return for the 12 months to 31 December 2006 and the DPFI delivered an 11.9% total return for the same period.
Centro’s manager – direct property funds Alan Hayden said “These returns demonstrate the strong income and capital growth derived from retail property investments.”
The key changes for both funds include a lower minimum investment amount and significantly reduced entry cost. The minimum investment amount has reduced from $50,000 to $25,000, making the funds more accessible to the self managed superannuation fund market and other direct investors.
The upfront investment cost or “buy spread” has been reduced from 2.5% to 1% for the DPF and from 1.8% to 1.0% for the DPFI, providing investors with a lower cost entry point into the direct retail property funds.
Australian Property Journal
