ASA Diversified Property Fund

The Fund is an unlisted property trust that aims to provide investors with monthly tax-effective income and the opportunity for capital growth over the medium to long term. The Fund aims to achieve this by investing in a diversified property portfolio of quality Australian commercial properties including offices, convenience retail shopping centres and industrial properties.

How the Fund works

Investor capital is pooled with borrowings from lenders to purchase, maintain and/or redevelop direct property and related assets for the Fund.

Fund income

Rent from the Fund’s properties and income earned on its other investments generate income. This income is used to meet the interest expenses on the Fund’s borrowings, management fees, property-related expenses and appropriate ongoing Fund expenses.

We may also retain some income as a provision for items such as future expenses or capital requirements. Once these costs and provisions are met, the remaining income is distributed to investors.

Medium to long term capital growth

The capital growth (or loss) of your investment is largely attributed to revaluations of the Fund’s properties and changes in value of other investments including interest rate derivatives and the level of borrowings held by the Fund.

There are risks associated with every investment and it is important that investors consider the risks of investing and take into account their own personal investment goals and financial situation. Some of the risks of managed investment schemes are explained in section 8 of the PDS.

Features of the Fund

• Income is generally paid monthly and sourced primarily from tenants with contracted leases – the majority sourced from investment grade credit rated, and/or ASX listed, companies.
• Managed by a specialist investment manager with skilled employees who have extensive experience in the property industry.
• Access to a diversified portfolio of property investments, including some strategic assets with the ability to further enhance income and the potential for capital growth over the medium to long-term.
• Potential for tax deferred income.

The investment strategy of the Fund is to acquire, manage and grow a diversified commercial property portfolio including but not limited to offices,  convenience retail properties and industrial properties in Australia.

The Fund’s diversification strategy aims to provide stability of income through periods of change in the economic environment and enables us to actively manage the portfolio to achieve its aims.

The Fund primarily invests in the following: 

Direct property assets and unlisted property trusts

The Fund typically holds 70-100%1 of its assets in direct property. The Fund may hold up to 20% of its direct property exposure through unlisted property investments.

The properties held include (but are not limited to):

• Commercial (e.g., office buildings)
• Retail (e.g., convenience retail shopping centres)
• Industrial (e.g., warehouses)

Listed Australian REITs

The Fund may hold between 0-15% ¹  in the listed Australian REITs sector.

Cash ²

The Fund may hold between 0-20%¹ in cash and similar investments.

^{1 The target allocation thresholds may change over time and represent a percentage of the Fund’s total assets.
2 Cash is held by Australian ADIs (including certificates of deposit, bank bills and other cash-like instruments) and will generally be no more than 20% of the Fund’s net assets.}

Direct property

The Fund’s properties are predominantly situated in capital cities and major regional and metropolitan centres although the Fund may invest outside these areas if appropriate.

The Fund’s property portfolio is diversified by geographic location, tenancy mix, lease terms and size of properties which helps to reduce specific property risk.

Unlisted property trusts and listed Australian REITs

The Fund may also invest in property trusts (i.e. unlisted property trusts and listed Australian REITs) provided the proposed investment meets the Fund’s investment objective.

Unlisted property trusts and listed Australian REITs may be used to achieve the target level of exposure to suitable properties and to enhance geographic and sector diversification.

The Fund typically invests in unlisted property trusts to achieve exposure to suitable properties and to enhance geographic and sector diversification.

Listed Australian REITs may also be used in conjunction with cash, to support the Fund’s ongoing cash flow management.

Property development

Property developments usually involve;

• the construction of a new building;
• a significant increase to the lettable area of a building; or
• a change to the nature or use of the property.

Development of the Fund’s existing assets

In managing the Fund’s property portfolio, we may refurbish or redevelop properties from time to time as required.

The Fund seeks to enhance its existing properties through selective exposure to property development with the aim of improving rental returns and the capital value from the developed property.

Material property developments will only be undertaken where, in our view, substantial pre-commitments to lease are in place and development risk is appropriately mitigated.

New property developments

New property developments may be considered, with a view to retaining ownership in the medium term. Speculative development is not part of the Fund’s strategy.

Up to date information on the Fund’s significant property developments (if any) is available in the Fund’s latest Benchmark Notice.

Selling assets

We may sell assets where we believe it is in the best interests of the Fund and Investors. We consider a range of factors with reference to the current valuation of the asset, including but not limited to:

• the potential for future capital appreciation of existing properties relative to other properties available on the market;
• the impact of new competition, changes in local economic conditions and demographic changes;
• the overall portfolio composition and any requirements to rebalance the portfolio; and/or
• the Fund’s liquidity requirements (where applicable); and/or
• the Fund’s level of borrowing (gearing).

Capped Withdrawal Facility

Effective from 1 May 2026, the Responsible Entity will make available a quarterly Capped Withdrawal Facility (Capped Withdrawal Facility), capped at a maximum of 2.5% of the Fund’s net asset value on each Closing Date. The Responsible Entity may increase the size of this facility, or otherwise alter the facility, if it determines it is in the best interests of the Fund to do so. The Closing Date is generally 3.00pm Melbourne time on 21 February, 21 May, 21 August and 21 November of each calendar year, or the next Melbourne business day if the relevant day is a non-business day. To request to participate in the Capped Withdrawal Facility, please refer to the Fund’s Capped Withdrawal Facility booklet available at  www.asarep.com/dpf.

Five-yearly Fund review events

In addition to the Capped Withdrawal Facility, the Responsible Entity will undertake a review of the Fund every five years.  

Term Liquidity Facility

Every five years (commencing from 1 January 2026) the Responsible Entity intends to offer a Term Liquidity Facility to provide a substantially larger amount of liquidity compared against the amount provided under each quarterly Capped Withdrawal Facility.

Liquidity provided under a Term Liquidity Facility will follow a review of the Fund and available options to generate liquidity such as asset sales, new equity investment, debt refinancing, listing, a merger or another type of proposal.

Liquidity under a Term Liquidity Facility is intended to be provided on or before the date which is 12 months from the end of the relevant five year period (the Liquidity Date). For example, in respect of the first five year period ending 31 December 2030, the Liquidity Date would be on or before 31 December 2031. 

The withdrawal price under a Term Liquidity Facility will be the net asset value per Unit on the Liquidity Date, less transaction costs (per the constitution).

The operation of a Term Liquidity Facility is not guaranteed in all circumstances. It is subject to the Responsible Entity’s obligations to all Investors and consideration at the time as to what is in the best interests of the Fund as a whole, including the Fund’s ability to continue to meet its investment objectives and consideration of non participating Investors’ interests. It is therefore not guaranteed that a particular Term Liquidity Facility will be offered or that a certain amount of liquidity will be provided. It is also possible that available liquidity may be scaled back (pro rata to participating Investors’ withdrawal requests).

ASA Real Estate Partners Pty Ltd (ASA) is a specialist Australian real estate investment management company. ASA’s Directors have over 90 years of combined relevant experience gained from their careers in investing in property.

ASA Real Estate Partners Pty Ltd

The ASA team’s experience includes investing in Australia across the States and Territories and internationally and includes investing in a range of different types of commercial property including retail, office, residential, storage, healthcare and industrial. 

ASA’s experience includes investing and operating unlisted and ASX listed real estate investment trusts for wholesale and retail investors.

ASA’s directors previously worked together at APN Property Group, an ASX listed real estate investment management company which was sold to Dexus in 2021. At that time APN’s funds under management exceeded $3 billion and included two ASX listed real estate investment trusts.

ASA is committed to putting its investors first and to operating under its values of integrity, courage, humility and commercial acumen. ASA is headquartered in Melbourne, Australia and its team is based in Melbourne and Brisbane. Its team includes investment professionals with significant expertise across real estate acquisition, sales, leasing, development, capital expenditure and asset improvement, strategy, financing, capital management, accounting, compliance, governance, risk management, information technology, investor relations, sales and marketing. ASA uses standard operating procedures and technology to enhance its operational efficiency and risk management.

ASA values excellent customer service in the delivery of risk adjusted investor returns. 

The Responsible Entity is wholly owned by ASA Real Estate Partners Pty Ltd.

For more information on ASA visit www.asarep.com.

Investment philosophy

It is our investment philosophy that the market prices for properties do not always reflect the underlying value. This may present an opportunity to generate value by buying and selling properties at the most optimal time. Value can also be achieved, and investment risk mitigated, by skillful property and tenant management.

The properties we purchase are carefully selected after assessing the value, considering inherent risks, and the ability to mitigate those risks. The selection process also takes into account:

• location attributes, such as demographic profile, road and services infrastructure and the level of competition;
• property specific criteria, such as the quality of buildings and opportunities to enhance or redevelop the property to protect and/or grow future income and capital value; and
• covenant strength and tenant lease profile.

We actively manage the Fund’s portfolio with the aim to optimise the Fund’s return.

Alex has over 20 years of experience in real estate funds management, including asset management, leasing,  transactions, corporate finance, and investor relations.

Prior to cofounding ASA, Alex was Head of Listed Funds at Dexus (ASX:DXS), where he oversaw $2.4 billion in assets. He was also instrumental in delivering one of the first carbon-neutral certified ASX-listed property trusts under the Climate Active verification standard.

Alex holds a Bachelor of Commerce and an Advanced Diploma of Financial Services.

Over 20 years’ experience across real estate investment management, finance and law.

Most recently CEO of ASX listed APN Property Group (ASX:APD) and then Head of Listed Funds with Dexus (ASX:DXS) following the agreed sale of APN to Dexus.

11 years with APN and growth of platform from under $1 billion to in excess of $3.8 billion (including sale of healthcare fund) market value of platform $26 million to $320 million (2013 – 2021).

Previously roles in investment banking with Goldman Sachs and corporate law with Herbert Smith Freehills.

Mergers, acquisitions and financing transactions worth over A$8 billion within Australia and internationally including a number of significant commercial real estate transactions across, retail, office, industrial and healthcare including in recent years the listing on ASX of APN Industria REIT and APN Convenience Retail REIT with over A$800 million in assets at IPO dates.

Chair, Property Industry Foundation Victoria, National Board Member, Property Industry Foundation.

Degrees in Law (Honours), Science, and Masters of Business Administration (London Business School).

Chris has over 50 years of experience in real estate, having started his career in 1972. He was the founder, major shareholder, and Chairman of ASX-listed APN Property Group (ASX: APD). 

Previously, Chris was a principal at Richard Ellis (now CBRE), responsible for City Sales and Leasing, and co-founded Grocon Pty Ltd, where he was a substantial shareholder and director until 1996.

Chris has extensive expertise in real estate management, risk management, marketing, construction, and development across residential and commercial sectors. Outside of real estate, he has a keen interest in the wine industry, founding Kooyong Wines and Ocean 8 Wines.