Community and Social Services Property Fund (Fund) is a multi-asset, open-end unlisted property fund that will focus on investing in assets that provide basic goods and services to our community. Be it the local doctor, childcare centre, affordable housing or neighbourhood convenience and grocery store, these properties meet the important needs of day-to-day life.

The Fund aims to provide investors with regular and stable income with the potential for capital growth through an investment in a diverse portfolio of real estate investments tenanted by operators providing community and social services.
 

Opportunity highlights

Community and social services property covers a wide range of property sectors including childcare, health, wellbeing and fitness, and neighbourhood retail, just to name a few. They all, however, have the general characteristic of providing basic goods and services to our community and therefore meet the important needs of our day-to-day life.

Key investment highlights:

• Stable income derived from property rents.
• Target distribution income range of 5.00% to 5.50% pa.*
• Regular distributions intended to be paid monthly.
• Income distributions may contain a tax deferred portion.
• Distribution reinvestment plan.
• Periodic investment plan.
• A growing and diverse property portfolio.
• Capital growth potential.
• Limited withdrawal facility.
• Minimum investment $10,000.

*This is a guide only, not a forecast or guarantee. See the Product Disclosure Statement for more information and a summary of the main risks of an investment in the Fund.
 

Fund overview 

The Fund’s investment objective is to invest in community and social services property, Australian Real Estate Investment Trusts (A-REITs), listed on the Australian Securities Exchange, cash and cash-like products.

The Fund has invested in four properties that mainly consist of a combination of childcare and general medical tenants.

The Fund will target real estate assets underpinned by leases to tenants who focus on providing basic goods and services that, by their very nature, are essential for the community’s day-to-day living. The Fund’s investment strategy includes property types with tenants providing the following community or social services: 

• Childcare and education. 
• Health, wellbeing and fitness. 
• Specialist welfare, social welfare and affordable and community housing. 
• Community services. 
• Neighbourhood retail. 

Fund strategy

• invest in assets with experienced operators; 
• build diversification by location, usage and tenant; 
• acquire property with contracted long-lease tenure to drive regular and reliable income;
• work within the target gearing range of 35% to 49%;
• pursue a balanced acquisition policy with established assets; 
• undertake development opportunities, where appropriate; and
• actively review the Fund portfolio and divest non-core or sub-optimal assets where appropriate.

Limited withdrawal facility

The Fund intends to offer regular capped withdrawal opportunities commencing on the third anniversary of the Fund, subject to available liquidity. To assist in providing the regular capped withdrawal opportunities, the Fund will hold some investments in A-REITs, cash and cash-like products. 
 

Important information

• The target income range of 5.00% to 5.50% pa is a guide only; it is neither a forecast nor a guaranteed return.
• Annual and monthly income distribution rates can vary.
• See the Product Disclosure Statement for more information and a summary of the main risks of an investment in the Fund.

How to invest in the Community and Social Services Property Fund

Before investing, you must read the Product Disclosure Statement (PDS) containing detailed information about the Fund, its features, property portfolio, risks, and strategy. You must also read the Target Market Determination and answer the questions we ask to ensure you are eligible to invest.

Find out more

To discuss this exciting opportunity, or to apply for units in the Fund, please speak with your financial adviser or contact KM Property Funds on 1300 132 099 or email [email protected].

How to apply

By clicking on the Apply now button, you acknowledge that you have read Product Disclosure Statement, Research Report and Target Market Determination