This article is from the Australian Property Journal archive
THE National Australia Bank has launched its first property trust in two years.
This is NAB’s first property-linked investment in two years. NAB head of global markets investments John McClusky said this reflects its view that investors are returning to the market with greater confidence.
The CorVal Industry House Trust has been launched with an investment in a 14-level commercial office building in Canberra, which is 99% leased to the AAA rated Commonwealth Government.
The trust has forecast returns of 8.15% and 8.25% pa to the end of June 2010 and 2011 respectively. The unit price is $1 with a starting NTA of $0.95c.
"¸This is the first time in two years we’ve felt like retail investors are ready to put their money in property. Although they’re definitely not interested in just any property investments – investors are incredibly selective.
“The underlying features of the CorVal offer definitely ticks the boxes for what people are looking for – it’s newly built in a great location with the Commonwealth Government supporting the long term cash flows. And it’s a pretty straightforward investment – we’ve put together a simple, transparent fund structure. The stats are very solid,” he added.
Research house Lonsec has given the fund a Recommended (Upper End) rating.
CorVal executive director Rob Rayner said this is the first offer by CorVal.
“Based upon our unique mix of experience, energy and financial strength, combined with a flexible business model, we are excited about the opportunities that lay ahead for CorVal to present to investors moving forward. As a material co-investor in both this fund, and others, CorVal has a complete focus upon performance,” Rayner concluded.
Australian Property Journal
