Stirling Property Funds has closed the Stirling Enhanced Yield Fund oversubscribed amidst nationwide lockdowns. The Fund acquired three assets at a 30% discount to values in Sydney and Melbourne: two industrial assets at a 19% discount to replacement cost in Newcastle’s premier industrial estate and a Large Format Retail centre, MacGregor Home, in South Brisbane’s most dominant large format retail precinct.
The three institutional quality assets, with a combined asset value of $52.1million, are in high growth locations (population growth in Brisbane is 72% higher and Newcastle 63% higher than Sydney) with strong national tenants and are land rich.
Stirling’s Enhanced Yield Fund offers investors a premium return relative to peers:
- Cash distribution of 7.9% p.a. paid quarterly, and
- Total return of 13.3% p.a., gross tax effective for high tax bracket investors as a result of depreciation and tax deferral benefits
Stirling is focused on identifying mispriced institutional quality assets in great locations with strong tenants offering above-average risk-adjusted returns.
This successful capital raising follows their first three funds which were all oversubscribed and are all outperforming original forecasts including the third fund which is currently forecasting 30%+ p.a. against original 15% p.a. forecast.
Independent Fund Research and Ratings Recommendation
Core Property has provided a “Recommendation” rating on the Fund which “indicates that the product has an above average grade profile across a number of Core Property’s parameters and has the potential to deliver above average risk adjusted total returns.”
About Stirling Property Funds
Stirling focuses on investing in, and actively managing, real estate assets exposed to population growth, infrastructure investment and high growth industries which will deliver long term, sustainable investment outperformance.
Stirling’s key point of difference is its vertically integrated platform combining fund management and development expertise. This enables Stirling to generate enduring value for its clients through the active repositioning of properties.
Proven fund managers with more than 65 years of senior-level experience in funds management, commercial, industrial and retail investment and asset management, finance, and town planning.