271 Spring Street, Melbourne, VIC is one of REI Super’s unlisted property investments through the ISPT Core Fund.
Highlights for FY2020
- The Fund’s net total return was 0.98% for 12 months to 30 June 2020. The Fund delivered a 5-year net total return of 9.39%.
- During FY2020, the Fund grew $0.788B to $15.98B, including $605.18M in acquisitions and $197.41M for the settlement of 447 Collins St, Melbourne VIC.
Best performing asset
- 271 Spring Street, Melbourne which has a total return 15.3% and valuation of $181M. It has a long-term lease to Australian Unity couple with positive market movements and cap rate compression.
Q2 2020 Valuations
- During FY 2020, the weighted average capitalisation rate has stayed relatively stable, moving slightly from 5.33% to 5.32% (excludes Fund’s interests in unit trusts). Tightening in the earlier part FY2020 across commercial and logistics and warehousing sectors offset a gradual softening in retail capitalisation rates throughout the financial year.
- June independent valuations (after development and capital expenditure) were conducted on 100% of assets. They resulted in a total direct property portfolio value of $14.96B. This reflects a decrease of $741.00M from the unadjusted pre-COVID-19 March valuations, or an increase of $121.30M from the March book value (after the provisions for future loss) recorded in Q1 2020.
Unlisted property assets are a source of stability and great long-term returns for REI Super’s portfolio.
Approximately 65% of REI Super’s property portfolio is invested in unlisted property assets, through one of our long-standing investment managers, Industry Super Property Trust (ISPT).
Unlisted property assets are assets that are not listed on the Australian stock exchange and are generally not readily available to individual investors.
Unlisted property investments are excellent long-term investments, providing a combination of growth and income to REI Super’s portfolio. They also have fewer short-term ups and downs in their returns than many investments.
REI Super’s investments in ISPT are through its Core Fund, which is a diverse portfolio of around 75 Australian commercial, industrial and retail properties of unmatched quality across capital cities and regional centres.
Since inception in 1994 the ISPT Core Fund has achieved a total gross return of 9.62% p.a.
A growing portfolio of high-quality property assets
The portfolio includes many iconic Australian properties:
- Melbourne’s GPO
- Westfield’s Doncaster Shopping Centre
- Brisbane’s Wintergarden complex
- Casselden Place in Melbourne
- Liberty Place in Castlereagh Street, Sydney
- 2 National Circuit in Canberra
- 100 St Georges Terrace in Perth
Future investment performance can vary from past performance, and you should not base your decision to invest in REI Super simply on past performance. Past earning rates are not an indicator of future earning rates. The investment returns of REI Super are not guaranteed, and the value of the investment may rise or fall.
The information contained in this article does not constitute financial product advice. However, to the extent that the information may be considered to be general financial product advice, REI Super advises that REI Super has not considered any individual person’s objectives, financial situation or particular needs. Individuals need to consider whether the advice is appropriate in light of their goals, objectives and current situation.
REI Superannuation Fund Pty Ltd ABN 68 056 044 770 AFSL 240569. RSE L 0000314 REI Super ABN 76 641 658 449 RSE R1000412 MySuper unique identifier 76641658449129