Investa Flagship Wholesale Fund, ICPF tops Mercer IPD Index in 2017
A high exposure to the Sydney and Melbourne office markets, as well as securing some key leases, has helped propel the $4.8 billion Investa Commercial Property Fund (ICPF) to the best-performing unlisted wholesale fund in the Mercer/IPD Australia index.
The fund delivered a net total return of 15.5 per cent for fiscal 2017, beating the GPT Wholesale Office Fund with 13.6 per cent.
Charter Hall's Prime Office Fund delivered 19.2 per cent but is not included in the index due to its gearing levels being more than 40 per cent.
"There were a number of key areas that drove performance," Investa chief investment officer Peter Menegazzo said, "including strong weighting to Sydney and Melbourne and a number of key leasing deals completed – over 126,000 square metres of leasing achieved across 82 deals."
Key Lease Renewals
Among them were Telstra's renewal at 242 Exhibition Street, Melbourne, and law firm Allens renewal at 126 Phillip Street, Sydney.
ICPF also settled its acquisition of the Investa management platform and acquired an 8.9 per cent stake in the listed Investa Office Fund.
Investa group executive Jason Leong said the fund opened its two-year redemption window in April but that no redemptions were made and "pleasingly a number of reverse inquiries were received requesting further investment into the fund".
"The fund has significant interest from new and existing investors to invest further capital which totals more than $500 million from both offshore and domestic investors," Mr Leong said.
2017 marks the second time ICPF has received this achievement, following the first time in 2015, read more https://goo.gl/BNzHVs