Property Fund 1
ADPF1 is a diversified opportunistic real estate fund targeting a 10-12% net IRR for investors.
The Fund is currently 70% drawn and invested across 12 opportunities which are on track to outperform the Fund's objectives with a forecast blended gross return of 16%.
ADPF1 maintains flexibility to invest across most sectors, with its current investment portfolio including Logistics, Residential, Mixed Use, Large Format Retail and Alternatives assets (including childcare, pubs and service stations).
Following three oversubscribed raisings, ADPF1 has re-opened for its fourth and final close.
ADPF1 was launched in late 2019 with the objective of delivering a 10-12% net IRR to investors through a diversified portfolio of real estate private equity transactions in Australia.
The Fund has raised equity commitments of $283m to date, of which $198m are now allocated to investments with a gross value of $325m. With a strong pipeline of opportunities, ADPF1 has re-opened for a final round of investment from new and existing investors, targeting a final equity commitment size of $350m
The Fund runs a diversified opportunistic strategy, which is important in achieving target returns in a complex backdrop for investment. To date, these investments have been made in Logistics, Mixed Use, Large Format Retail and Alternatives assets, with the investment team actively monitoring opportunities in other sectors. The Fund takes an active approach to these investments in order to generate higher returns.
ADPF1 targets a distribution yield of c.5% p.a., with the first payment having occurred in March 2022. The Fund is closed-ended, with a 3 year investment period from the final close, and a 5 year term from the latest end of the investment period.
As partners in AFM, Michael Gutman, the Lowy Family Group and Alceon Group are significant co-investors in ADPF1. The Manager’s co-investment is currently >30%, and will remain in excess of 25% at final close (based on total equity commitments of $350m). This provides very strong alignment between the Manager and Investors (as compared to typical manager co-investments of 5% for a fund of this nature).
Full details of the Fund offer and investments to date are included in the latest Information Memorandum which is available upon request to eligible wholesale investors.