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REGISTER YOUR INTEREST HERE: fpproperty.com.au

See our mention in the Sydney Morning Herald: "Rich lister and bogan in a David and Goliath war of words" by Carolyn Cummins
See our mention in the Property Observer: "Fat Prophets floats REIT-focused listed fund"
See our mention in The Australian: "Fat Prophets launches global REIT..." by Elizabeth Redman

 


We are pleased to announce that yesterday we lodged a Product Disclosure Statement (PDS) for the launch of our newest fund to date.  The Fat Prophets Global Property Fund is looking to raise up to $220m and will list on the ASX in mid-September. With experience being key, the new Fund will be led by Simon Wheatley who joined Fat Prophets after 17 years with Goldman Sachs in Australia and New York where he headed Australian Real Estate Equity Research, International equity research, and Australia and New Zealand real estate investment banking.

The new Fund’s Investment strategy is to invest in a portfolio of 70-90 globally listed real estate equities (typically Real Estate Investment Trusts - REITs).  The investible universe of the benchmark is around 350 stocks, so we will target a concentrated position of investments where we deem there is a long-term value opportunity in the typical style of Fat Prophets.

The Fund will pass through all distributions received from its investments to investors with an anticipated gross pre-tax annual yield of 5.2% p.a. The Fund will be simple in nature, investing only in listed equities, with no use of derivatives, and employing no leverage. The Fund will also weight ~30% of its exposure to Australia and the balance to international. 

This will allow Australian investors in the ASX listed Fund to have a core holding in our local market where we have deep knowledge of management and assets, combined with international holdings of the best value stocks and sector opportunities we identify. The assets owned by the stocks we will invest in include office, shopping centres, industrial warehouses and hotels. 

Why Real Estate? 

This Fund is very different to our other Funds and the Fat Prophets Global Contrarian Fund. We believe it complements our existing offerings very well.  The Global Property Fund is sector specific with a focus on equities which own real estate, and yield will form a core underpinning of annual returns. 

Real Estate is a well-known sector for asset diversification. Real Estate values underpin REITs, and real estate values are more stable than equities and often have a different investment cycle, meaning real estate may continue rising when equities are in decline.

Similarly, REITs are well known for having a lower beta than equities. In Australia this is 0.6 times over the long-term. This means that typically if equities rise or fall by 1.0%, REITs will rise or fall by 0.6%.  As such they are known as ‘defensive’ investments.

As such they are an important investment diversification asset class which are typically owned by superannuation funds and retirees seeking asset stability and capital preservation combined with regular income from distributions.

As we have just lodged with ASIC, so the PDS is in the ‘exposure period’ for the next 7 days, investors cannot yet apply for units until the exposure period ends. You can however view the PDS to find out more, and also register your interest at www.fpproperty.com.au.

These REITs we are targeting for investment often own iconic real estate such as the Empire State Building in New York, Bluewater Shopping centre in London or Governor Phillip Tower in Sydney.  Statement assets you will unlikely own in your own current portfolio.  We invite you to review the PDS and consider making an investment and as such make your own “real estate-ment.”