Australian Unity Property Income Fund
The Fund invests across a range of commercial property assets, including direct property, unlisted property trusts, and A-REITs.
The Australian Unity Property Income Fund (the Fund) is a diversified portfolio of assets that invests across directly owned property, unlisted property trusts and listed A-REITs. The assets below are the directly owned properties of the Fund and do not include the underlying properties held within the unlisted and listed sleeves of the Fund.
The Fund is an actively managed portfolio that focuses on delivering sustainable and consistent income to investors across a range of property asset types.
This includes investing in direct property assets, units in unlisted property investments and listed Australian REITs. These investment structures have varying performance, risk and liquidity characteristics providing portfolio diversification.
Through investing in a range of different property assets and cash, the Fund aims to maintain a sound level of liquidity, generally enabling investors to request withdrawals when they choose.
For more than 20 years, the Australian Unity Property Income Fund (Fund) has blended direct properties and unlisted property trusts with listed A-REITs and cash to provide investors with relatively consistent income distributions and the potential for capital growth over the medium to long term.
This Fund is typically suited to investors who:
- Seek regular stable income payments.
- Want some direct property exposure but may need to access all or part of their investment at relatively short notice.
- Want to invest in a diversified property portfolio.
- Have at least a five-year investment outlook.
- Want daily Unit pricing.
- Want a property investment with no direct gearing.
The Fund uses a top-down investment approach, which incorporates analysis of the broad economic trends impacting the various property markets in which the Fund operates. A bottom-up view is used to identify undervalued investment opportunities across various property sectors, investment structures and geographic locations. Using this approach, and separate yield analysis, a preferred allocation between direct property, unlisted property funds and the listed Australian REIT sector is achieved.
The Fund uses the above information in assessing and investing in direct property assets and unlisted property funds.
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 investments at the most optimal time. Value can also be achieved, and investment risk mitigated, by skilful 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.
Direct property
The Fund’s property portfolio is diversified by sector (commercial, retail, industrial and other property sectors), geographic location, tenancy mix, lease terms and size of properties which helps to reduce specific property risk. The Australian Unity management team builds strong relationships with tenants and where appropriate they develop suitable long-term expansion and/or improvement strategies for the Fund’s direct properties to maximise growth. As part of managing these properties where possible the team seeks to put in place carefully structured leases, with the aim of achieving predictable, annual and growing rental income and capital growth over the medium-to-long term.
Unlisted property
The Fund invests in a number of unlisted property funds including those managed by Australian Unity. These investments provide potential exposure to a more diversified portfolio of real estate assets than would be possible by solely investing directly with the objective to enhance the overall portfolio diversification.
Listed Australian REITS
The Fund predominantly invests in the Australian Unity A-REIT Fund to gain exposure to the listed Australian REIT sector. The Australian Unity A-REIT Fund at the date of this PDS is managed by the Australian Unity Real Estate Investment Trust team, led by Damian Diamantopoulos. The Fund may invest in ASX-listed property stocks directly.
Exposure to listed Australian REITs provides a different return profile than other property investments, as well as providing enhanced liquidity.
Cash
A component of the Fund is held in cash and similar investments primarily for liquidity purposes.
Direct Property assets and Unlisted property funds
40-70%1 of the Fund’s assets are invested in direct property and unlisted property funds.
Unlisted property funds predominantly invest in direct property and are not listed on the stock exchange.
- The properties held include (but are not limited to):
- Commercial (e.g. office buildings)
- Retail (e.g. shopping centres)
- Healthcare (e.g. hospitals or medical centres)
- Industrial (e.g. warehouses)
The Fund’s property portfolio is diversified by geographic locations and sectors, which helps to reduce specific property risks.
Listed Australian REITs
These are property trusts and companies listed on the Australian Securities Exchange. The Fund invests 20-50%1 in the listed Australian REIT sector.
Cash
The Fund may hold 0-20% in cash and similar investments.
Click here for our Fund Performance.
Units in this Fund are issued by Australian Unity Property Limited ABN 58 079 538 499, AFS Licence No 234455. Information provided here is general information only and current at the time of publication and does not take into account your objectives, financial situation or needs. In deciding whether to acquire, hold or dispose of the product you should obtain a copy of the Product Disclosure Statement (and any relevant Supplementary Product Disclosure Statement) and seek professional financial and taxation advice. This information is intended for recipients in Australia only. Past performance is not a reliable indicator of future performance.
Established in 1840, Australian Unity is Australia’s first member-owned wellbeing company, delivering health, wealth and care services.
We’re committed to real wellbeing for all Australians, and for us, real wellbeing means so much more than physical health. It’s about your standard of living and feeling safe in your home. It’s your personal relationships and being connected to your community. It’s about what you want to achieve in life, while having the security to get out and do what makes you happy.
A financially secure future doesn’t happen without smart guidance and solid decision making. From tailored financial advice and investments to trustee and banking services, we’ll support you to make the most of your income.
Damian joined Australian Unity in 2016 as Portfolio Manager and Head of Research Property. He is the Portfolio Manager of the Property Income Fund.
He has over 19 years’ experience in investment management and research of both listed and unlisted property securities as well as direct property.
Prior to joining Australian Unity, Damian managed various property securities funds during his time at Karara Capital and 360 Capital Group.
Damian also has experience in managing several Australian REIT and direct property funds having concluded an extensive 12-year career at APN Property Group.
Damian graduated with a bachelor’s degree in Commerce from Monash University, has completed the FINSIA Graduate Diploma in Applied Finance and Investment and holds a Diploma in Property Investment and Finance from the Property Council of Australia.
Andrew joined Australian Unity in 2018 and is responsible for providing strategic analytical and research support across various property and investment fund strategies for both the Australian Unity Property Income and Australian Unity AREIT Funds.
He has over 15 years of experience across both European and Australian real estate markets. Prior to his current role, Andrew managed the internal valuation function and risk review process across Australian Unity’s mortgage and property fund portfolios.
Andrew has also held roles with Avison Young (formerly GVA), Standard & Poors and Leighton Properties.
Andrew holds a master’s degree in Property Appraisal & Management from Sheffield Hallam University (UK) and is a qualified Valuer with accreditations from both the Royal Institution of Chartered Surveyors (MRICS) and the Australian Property Institute (API CPV).
He is currently a serving member of the Property Council of Australia Future Trends and Innovations Committee.
Australian Unity Tim joined Australian Unity in 2008 and is responsible for the day-to-day direct property management of the Fund.
Prior to joining Australian Unity, Tim was employed in a variety of property and asset management roles with ANZ and AMP Capital Investors.
Tim holds a Bachelor of Communications from Canberra University and Diplomas in Commercial Property Asset Management and Property Investment Finance from the Property Council of Australia. Tim is a licensed real estate agent and is the Officer in Effective Control of Australian Unity Property Management Pty Ltd.
Relevant Documents
You should read the PDS, TMD (if applicable) or any Investment Memorandum (or other offer documents) related to this product before making an investment decision. These documents (if available) can be found at https://www.australianunity.com.au/, or if this is a "wholesale investor only" investment, can be viewed by contacting the Product Issuer identified on the aforementioned website.
Statutory Statement
The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.
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