This article is from the Australian Property Journal archive
WRF Securities has continued its growth with the purchase of a further $14.7 million of commercial properties in New South Wales and South Australia in recent weeks.
The diversified funds manager announced that the properties, the South Grafton Shopping Centre and the Paralowie Shopping Centre in northern Adelaide, have been purchased for the group’s sixth property syndicate.
WRF has also indicated that it would launch its seventh syndicate within weeks.
The boutique funds manager said the settlement of the sixth syndicate, the Metro Property Syndicate, increased WRF’s total property investment assets under management to $130 million with more than 17,000 investors taking part in every state in Australia.
WRF Property managing director Owen Lennie says the group has built a quality commercial property portfolio across four states.
“Our annual investment report recently circulated shows all our existing portfolios are performing at or above investor expectations,” Lennie says.
Lennie said that WRF was taking advantage of Australia’s robust commercial property market by securing strategic, long-term investments for its syndicates.
WRF launched its commercial property arm in 2001.
The $7.425 million purchase of the South Grafton Shopping Centre shows a passing yield of 8.97%, whilst the $7.3 million purchase of the Paralowie Shopping Centre, north of Adelaide, has a passing yield of 9.6%.
“We expect both Metro properties to perform well for investors, thus maintaining the quality and success of WRF’s previous five syndications.
“Both properties have long-term tenants and are located in catchment areas with very desirable demographics,” Lennie added.
Lennie said WRF’s next milestone would be the launch of its seventh property syndicate within the next few weeks.
The portfolio is expected to initially consist of three properties in three states, and for the first time WRF are expected to venture into Tasmania.
“We expect the yield for this syndication to rise from more than 8.5% in the first year and income to be 100% tax effective for five years.”
Minimum investment in WRF’s property syndicates is $5000 and they are 100% tax advantaged for five years.
