ICAM Diversified Industrial Fund

The ICAM Diversified Industrial Fund (“IDIF”) is an open-ended fund which aims to provide investors with stable distribution yields and capital growth through access to a diversified portfolio of industrial assets.

Established in April 2022, the Fund will actively manage a growing portfolio of industrial assets to derive the maximum value to investors, including upgrade and development initiatives of assets where the risk adjusted returns are complementary to the Fund.

The Fund was created to capitalise on the strong projected demand and undersupply of industrial property across Australia. The Fund is targeting distribution, storage, manufacturing, and logistics facilities with superlative tenant covenants as well as build-to-suit fund throughs or take outs.

ICAM intends to leverage its extensive network to unlock off-market opportunities and build a fund size of $350M-$500M with 20-30 assets across Australia.

The IDIF will seek to capitalise upon the undersupply of land suitable for industrial development across Australia amid rising e-commerce penetration, onshoring of manufacturing and shifting supply chains.

• The Fund aims to purchase de-risked assets in strategic locations that are actively managed to provide stable income streams.
• The Fund will consider tenant-driven build to suit development and value-add opportunities if complementary to the Fund strategy.
• The Fund is targeting a distribution yield of 6% -6.5% p.a (average over 5 years) with a target IRR of 9%+. 
• Investors in this offer will be afforded priority to participate in future equity raises to fund the IDIF’s acquisitions of additional industrial assets, as the Fund diversifies income streams and captures cost synergies.
• Equity raises for further acquisitions are expected to occur semi-annually.
• The IDIF will be an open-ended unit trust with periodic liquidity windows anticipated to commence after 5 years from inception (initial liquidity event in 2027), and every 2 years thereafter.
• It is anticipated that Investors will be offered the opportunity to redeem their investment at those times via a liquidity event such as an asset sale, equity raise or debt refinancing.

The Fund will be seeking to capitalise on the growing demand for industrial assets which is being driven by the expansion of E-commerce and Q-commerce, onshoring of manufacturing processes and shifting supply lines as consumers’ propensity for online services and expectations for speed of delivery continue to escalate. The Fund will target strategically located assets or industrially zoned developable land throughout Australia.

The Trustee board will formulate the strategy and objectives of the Fund. Following the successful acquisition of the Seed Asset, ICAM will utilise its extensive network of agents and industry experts to identify additional assets to be acquired by the Fund. 

There are various industrial assets which may be considered for acquisition by the Fund including but not limited to distribution, storage, manufacturing, logistics, data centres and last-mile fulfilment facilities. ICAM will aim to closely manage capital to deliver consistent returns to investors while maintaining healthy working capital within the Fund. The Fund may look to acquire mature, well-performing industrial assets, in addition to working with national occupiers to source industrial spaces or reposition assets to enhance returns.

Greenfield development sites will be considered for entry into this Fund, however, this will be driven by tenant demand for build-to-suit accommodation.

Recommendations will be provided to the Trustee Board to determine if future acquisitions align with the overall objectives and the strategy of the Fund before being acquired.

An investment in the Fund is illiquid. There will be no withdrawal rights from the Fund.

The Fund anticipates providing periodic liquidity windows which will allow investors to submit a request for redemption of all or part of their investment. The first opportunity to redeem units in the Fund is anticipated to be 5 years after the Fund inception (initial liquidity event in 2027) , with further redemption windows every 2 years thereafter.

This document (“Information Presentation”) has been prepared and issued on a confidential basis by Inheritance Capital Asset Management Pty Ltd (ACN 608 095 030) (AFSL 481118) (‘ICAM’) and is dated July 2023. The information contained in this Information Presentation shall be treated as strictly confidential and shall not be directly or indirectly disclosed to any other party or reproduced, in whole or in part, without the prior written consent of ICAM. • This Information Presentation does not constitute, and should not be taken to constitute, in any jurisdiction, financial advice (whether general or personal) or a recommendation or statement of opinion (or report on either of those things) intended to influence a person to make a decision in relation to any financial product or instrument or an invitation, offer, or solicitation or inducement to buy or sell any financial product or instrument, or to engage in or refrain from engaging in any transaction. • ICAM does not make any representation or warranty, express or implied, as to the accuracy or completeness of the information in this Information Presentation or any person’s legal, tax or accounting treatment of the matters described herein. • To the extent permitted by law, ICAM and its related bodies corporate, officers, employees, agents, advisers, contractors and members (a) disclaim any and all liability relating to this information, including, without limitation, any express or implied representation for statements and conclusions contained in and omissions from this information; and (b) accept no liability (whether in negligence or otherwise) for any loss, damage, costs or expenses of any nature which may be suffered or incurred by any person relying on any information or statement contained herein or otherwise arising in connection with any such information or statement. This Information Presentation is distributed in Australia for use only by wholesale clients as defined in s761G of the Corporations Act 2001. • This Information Presentation may contain forward looking statements which are not based solely on historical facts but are based on current expectations about future events and results.  Such forward looking statements are based on views held only at the date of publication of the material and are not guarantees of future performance or events.  These forward looking statements are subject to inherent risks, uncertainties and other factors, many of which are beyond the control of ICAM.  Accordingly, actual results may differ materially from those expressed or implied in such statements.• ICAM does not undertake to update any forward looking statements to reflect events or new information following the publication of forward looking statements in this Information Presentation.  ICAM gives no representation or warranty (express or implied) as to the completeness or reliability of any forward looking statements. • Past performance information is not a reliable indicator of future performance. Any reference to past performance in this Information Presentation is intended to be for general illustrative purposes only.