Core Property has reviewed the Stirling Diversified Enhanced Yield Fund, an open-ended property fund managed by Stirling Property Funds.
The Fund is a registered managed investment scheme that invests in a diversified portfolio of properties in regional and capital cities that are well placed to benefit from decentralisation and increased investment in infrastructure
The Fund has already acquired two industrial properties at Mayfield West, in Newcastle NSW and is under contract to acquire a third property, a large format retail centre in MacGregor, in metropolitan Brisbane QLD.
The Responsible Entity is seeking to raise $25.2M to fund the acquisition, through the offer of 25.2M units priced at $1.00 per unit.
Core Property estimates the Fund can pay a 7.2% p.a. distribution in FY22 based on the three properties. Additional acquisitions are expected to be maintain the distributions within the Fund’s target distribution range of 6.5% – 7.5% p.a.
Core Property has rated the Fund as RECOMMENDED.