FOLKESTONE REAL ESTATE INCOME FUND AT SYDNEY

FOLKESTONE REAL ESTATE INCOME FUND AT
SYDNEY OLYMPIC PARK
MARCH 2015 QUARTER REPORT
PROPERTY UPDATE
As at 31 March 2015, the building was
100 per cent occupied. The weighted
average lease expiry (WALE) by income
was 7.0 years, with Thales occupying 100
per cent of the office space and 6.4 per
cent of the retail area until December
2022.
DISTRIBUTIONS
The distribution for the March Quarter
2015 was 2.125 cents per unit and will be
paid on 20 April 2015. This is in line with
our forecast annualised distribution of 8.5
per cent for FY15.
MARKET UPDATE
Sydney’s metropolitan office markets
registered strong investment volume and
improving leasing conditions in the second
half of 2014 and this has continued into
2015. Tenant enquiries have strengthened
and the overall Sydney office metropolitan
office vacancy rate fell from 9.2 per cent to
7.9 per cent over the six months to 1
January 2015.
According to Colliers, the Sydney Olympic
Park A Grade vacancy was at 8.5 per cent
which represented a marginal 10 basis
point decline over the second half of 2014.
There was limited leasing activity over the
period and no sales activity.
In March, the NRMA announced it was
investing $40 million and moving more
than 500 staff to a new headquarters in
Sydney Olympic Park. Construction of the
six-storey office building, immediately
adjacent to the Fund’s building in Murray
Rose Ave, is scheduled to commence in
August with completion anticipated in
2017.
NRMA group CEO Tony Stuart said
“Sydney Olympic Park had become a
significant growth area and he saw it as
the new “hub” of the west — given it is
home to more than 14,000 workers,
students
and residents
and
140
businesses”.
A further 53,000 square metres of
commercial office space has been
approved or mooted in Sydney Olympic
Park but is awaiting pre-commitment prior
to construction. However, some of this
may be developed for residential purposes
instead as the precinct becomes more
attractive for residential living.
PERFORMANCE
as at 31 March 2015
Forecast Distribution FY15
8.5%
Forecast Tax Deferred FY15
68.0%
Fund Gearing
44.9%
Property Value
$31.0m
Total Assets
$32.6m
Gross Debt
$14.6m
Net Assets
$16.4m
Units on Issue
16.5m
NTA (with mark to market of
interest rate hedges)
$0.99
NTA (without mark to market
of interest rate hedges)
$1.04
Fund Expiry
Dec 2017
APIR Code
FLK0005AU
FURTHER INFORMATION
For further information please contact your
financial advisor or contact Folkestone as
per the details below.
Adrian Harrington
Head of Funds Management
t: 02 8667 2882
e: aharrington@folkestone.com.au
Lula Liossi
Investor Relations Manager
t: 03 8601 2668
e: lliossi@folkestone.com.au
Michael Baker
Head of Distribution
t: 02 8667 2888
e: mbaker@folkestone.com.au
w: http://folkestone.com.au/fundsmanagement/private-funds/sydney-olympic-park/
DISCLAIMER: This report is issued by Folkestone Funds Management Limited ACN 138 125 881 AFSL 340990 (FFM) as Responsible Entity of the Folkestone Real Estate Income Fund at Sydney Olympic Park (ARSN 158 784 224). The report
has been published for information purposes only. The information contained in this report is of a general nature only and does not constitute financial product advice. In preparing this report the author has relied upon and assumed, without
independent verification, the accuracy and completeness of all information available from public sources or which has otherwise been reviewed in preparation of the report. The information contained in this report is current as at the date of this
report and is subject to change without notice. Past performance is not an indicator of future performance. Neither Folkestone Limited (FLK), FFM, nor any of their respective associates, related entities or directors, give any warranty as to the
accuracy, reliability or completeness of the information contained in this report. Except insofar as liability under any statute cannot be excluded, FLK, FFM, and its associates, related entities, directors, employees and consultants do not accept
any liability for any loss or damage (whether direct, indirect, consequential or otherwise) arising from the use of this report. All investment is subject to investment risk, including possible delays in payment or loss of income and principal invested.
None of FLK, FFM or any of their respective associates, related entities or directors guarantee the performance of the Fund or the repayment of monies invested.
Folkestone Funds
Management Limited
ACN 138 125 881 AFSL 340990
Sydney Office
Level 10, 60 Carrington Street
Sydney NSW 2000
Melbourne Office
Level 12, 15 William Street
Melbourne VIC 3000
e: office@folkestone.com.au
www.folkestone.com.au
t: +61 2 8667 2800
f: +61 2 8667 2880
t: +61 3 8601 2092
f: +61 3 9200 2282