New Star International funds »
News & views »
Press releases »
New Star International Property Fund acquires G...
The New Star International Property Fund has acquired Alinta Plaza, a Grade A office building on The Esplanade in Perth, from GE Real Estate for AU$63,500,000.
Alinta Plaza has a gross floor area of approximately 1,000 square metres. This comprises flexible accommodation on each of the seven floors and four car parking levels. The plaza is built on a net lettable area (NLA) of 7,800 square metres. The building underwent extensive redevelopment works in 2005, achieving completion to a high specification for tenant use in May 2006. It has a committed occupancy of 100%, with the anchor tenant being Alinta Ltd, which occupies 92% of the net lettable area and has a lease that provides for annual fixed increases in rent up to 2017.
The building is located in the heart of the Perth central business district. It is situated on the northern side of The Esplanade, close to the junction with Sherwood Drive, which connects The Esplanade with St. Georges Terrace, Perth’s prime office and retail area. Current vacancy rates in this area are about 0.7%.
Stuart Webster, head of global property at New Star Asset Management, said:
“We are delighted to have secured this asset in Perth. Alinta Plaza is an office building that will offer substantial long-term income with built-in growth and a superb underlying reversion in the base rental.
“Perth is a market that has out-performed its peers over recent years. It currently has a 0.7% vacancy rate across all core grade office stock. The investment story in Australia’s property markets is compelling and this is the type of asset we wish to continue to purchase.
“The combination of this asset plus the acquisitions elsewhere in Asia and Europe provide investors with exposure to a quality, diversified portfolio in what is considered by many to be a potentially more stable asset class in these volatile times.”
-ends-
For further information please contact:
Trina Arthur New Star 020 7225 9574
Polhill Communications 020 7655 0540
NOTES TO EDITORS:
New Star, one of the UK’s fastest growing fund management companies, was founded in June 2000 by John Duffield, previously the founder of Jupiter Asset Management, which he built into one of the most successful retail investment businesses in the UK.
IMPORTANT INFORMATION
Past performance is not necessarily a guide to future performance. This document is for information purposes only and does not constitute an offer or solicitation to invest in the fund detailed within. It should not be distributed to any third parties. Please be aware that the fund is registered for sale in the UK, recognised in Singapore as a restricted collective investment scheme, and is not registered for sale in Hong Kong.
This document is for professional investors, other financial institutions and professional advisers only and should not be provided to or relied upon by private investors. This document should not be distributed to any third parties and does not constitute an offer or solicitation to anyone in any jurisdiction in which such an offer is not authorised or to any person to whom it is unlawful to make such offer or solicitation.
Full details of the fund including risk factors can be found in the prospectus, which is available on request. Yield figures may vary and are not guaranteed. The annual management charge for the New Star International Property Fund is taken from capital. Capital growth will therefore be restricted. The value of investments may be affected by changing stockmarket conditions and, where applicable, by exchange rate movements. Investors may not get back the amount they originally invested when they sell their investment.
Although national interest rates and changing currency exchange rates may benefit the fund, they also present an added risk. The managers may seek to reduce the impact of any risk of fluctuations in international interest rates and currency exchange rates by purchasing instruments that provide hedging. The New Star International Property Fund invests in a specialist sector, which may be less liquid and produce more volatile performance than an investment in broader investment sectors.
Please note, the bid-offer spread for this fund is likely to be wider than on less specialist funds and may vary. The bid-offer spread represents the difference between the buying and selling prices for the underlying assets in the fund. Changes to the fund’s pricing basis will lead to an increase or decrease in what you will pay or receive when buying or selling shares. The overall impact of these changes should be less for long term investors and may be either positive or negative.
Whilst property valuations are conducted by an independent expert, any such valuation is a matter of the valuer’s opinion. The fund could be subject to significant losses if it holds a large position in a particular region that declines in value or is otherwise adversely affected. The amount raised when a property is sold may be less than the valuation, especially if the property needs to be sold quickly. Although the property shares element of the fund provides it with some liquidity, in certain circumstances, for example where there are significant redemptions, there may be constraints on the redemption or switching of shares in the fund.
The fund’s exposure to direct international commercial property may be less than 75% depending on market conditions, during times of significant inflows, or when reallocating between sectors or markets.
The value of capital and income will fluctuate as property values and rental income rise and fall. Whilst the manager will seek to hold a relatively diversified portfolio, as a result of operating in an international remit over a large number of jurisdictions and with investments in largely illiquid assets, the fund’s performance may be adversely affected by changes in market and economic conditions, tax or other laws or regulations or accounting standards.
The opinions expressed here represent the views of the fund manager at the time of preparation and should not be interpreted as investment advice.
New Star Investment Funds is the trading name of New Star Investment Funds Limited, part of the New Star Marketing Group. New Star Investment Funds is not authorised to give investment advice and only provides information on New Star’s products. Issued by New Star Investment Funds Limited. Authorised and regulated by the Financial Services Authority.
