6 April 2020

Launch of New Thynne Street Property Fund 

• Fully leased to a quality Australian Government statutory authority, the Australian Institute of Health and Welfare, until 2029, with options to renew.
• Fixed 3% annual rent increases.
• Contracted, predictable, and regular income.
• Forecast 7%  distribution yield, 100% tax-deferred.

KM Property Funds (KMPF) is offering investors an opportunity to invest in a secure commercial property fund, with a long-term Commonwealth tenant and fixed annual rental increases.

Thynne Street Property Fund owns 1 Thynne Street, Bruce, ACT, which is 100% leased to the Australian Institute of Health and Welfare (AIHW), an agency of the Commonwealth Government of Australia.

KMPF has already acquired the property and is seeking to raise $24.5 million from investors.

The Fund opens on 6 April 2020 to retail and wholesale investors; the minimum investment amount is $25,000.

Thynne Street Property Fund is likely to attract privately-advised and non-advised investors, such as self-managed superannuation funds, and retirees, who are looking for a predictable and reliable income stream that offers tax advantages.

“We understand that these are volatile and uncertain times, but we are pleased to bring a reliable investment opportunity to investors seeking a degree of income certainty in their investment portfolio,” says Mario Papaleo, Managing Director of KM Property Funds.

“The Fund is ideally suited for investors wishing to include a predictable, long-term direct property investment leased to the Australian Institute of Health and Welfare in their portfolio.”

The Australian Institute of Health and Welfare is responsible for compiling data on Australia’s health performance, which acts as a critical support service for the Federal Government, particularly during the global COVID-19 pandemic, as well as in shaping new health policies in the years to come.

“We typically invest in properties with quality tenants, and the Australian Institute of Health and Welfare is an exceptionally important organisation for the Australian community, particularly at the moment,” Mr Papaleo says.

Colliers International, Canberra, introduced the property to KM Property Funds, who acquired it in an off-market transaction for $39.3 million. The lease to AIHW has 9.2 years remaining until its expiry on 29 June 2029, with two further lease renewal options of three years each. The lease contract includes fixed annual rental increases of 3%.

Forecast distributions from Thynne Street Property Fund are commencing at 7% p.a. for FY20.

The three-level commercial office building in the suburb of Bruce is located close to the Belconnen town centre, opposite the University of Canberra, and within 8km of the Canberra CBD.

The modern, light-filled property was purpose-built in 2014 for the present tenant, with a high-quality fit-out and a 5-star NABERS energy-efficiency rating.

Thynne Street Property Fund represents KMPF’s second property fund in the ACT. Previously, KMPF launched the fully subscribed NewActon East Property Fund, which is the commercial component of award-winning NewActon precinct and is home to the headquarters of the Australian Competition and Consumer Commission (ACCC), and recently the Department of Health has also leased space in the building.

KM Property Funds has a total of $300 million in assets under management, led by a team of experienced, trusted, and reliable fund managers. KMPF is a division of the trusted KordaMentha group.

“Things are changing fast in the current climate, and we know the value of being able to offer a considered and cautious alternative investment opportunity,” Mr Papaleo says.

For more information, contact Marketing Director, Renee Taylor on 0418 116 297. For a copy of the PDS email [email protected]
 

Media inquiries:

Renee Taylor | 03 8623 3319 | [email protected]

Investor inquiries

Bernadette Spiteri | 03 9908 8903 | [email protected]

About KM Property Funds

KM Property Funds is a highly trusted and transparent commercial property fund manager, offering investments in a-grade Australian office and retail buildings.