Consistent with Stirling’s Investment Strategy, of uncovering relative risk-adjusted value from mispriced assets across all sectors of the commercial property market, we recognise there has been distress in discretionary retail which is negatively impacting the values of retail assets. This has created a mispricing opportunity of extremely resilient supermarket anchored, non-discretionary neighbourhood centres. Current pricing of these assets is providing compelling risk-adjusted returns.
Stirling considers that the attractive return metrics of Junction Fair, 8%p.a. average cash distribution (paid quarterly) and 9.4%p.a. total return underpinned by 99% centre occupancy with 50% of income from Coles, when compared to current term deposit rates of circa 1%, coupled with the high income levels and population growth of the local catchment, undersupply of supermarket floorspace and the opportunity to create additional value via active asset management present a compelling investment proposition.
About Stirling Property Funds
Stirling is a boutique funds management company focused on achieving outstanding capital growth for its high net worth investors. Stirling’s investment strategy focuses on commercial properties within key strategic markets, with strong occupier demand and low levels of vacancy which are well positioned to benefit from active asset management and Government infrastructure investment.
Total return strategy with a target IRR of 12%+ p.a.
Income return of 3-6% p.a.
Principal driver of capital appreciation is active asset management, not reliant on yield compression or high leverage.