Arena Property Fund

    APF Entitlement Offer - closed 24 April 2012

    Arena launched its initial investment product, the Arena Property Fund Entitlement Offer (the Offer), a new underwritten pro-rata rights issue for Arena Property Fund unitholders on 7 March 2012.
    The Offer presents an opportunity for unitholders and new investors to subscribe for new units in the Fund through a pro-rata non-renounceable offer on a basis of 2.31072 new units for every unit held by a unitholder on the record date (7 March 2012) at an application price of 9 cents per unit.

    The Offer closed on 24 April 2012 and units are expected to be issued on 7 May 2012.

    Key benefits for investors

    • Property – exposure to a diversified portfolio of commercial property assets valued at $ 266.85 million and backed by quality tenants.
    • Distributions – the expectation that distributions to investors will recommence, following the successful close of the Offer, with effect from the June 2012 quarter .
    • Additional units – bonus units will be allocated to investors who are allotted units under the Offer, equal to 2% of their application moneys, and paid by the underwriter. (For example, if you are allotted 10,000 new units, an additional 200 bonus units will also be allotted).
    • Liquidity – Arena intends to provide limited liquidity to Unitholders within a 2 to 3 year timeframe and a full liquidity event for all Unitholders by 30 June 2017, subject to market conditions. Please refer to page 15 of the Product Disclosure Statement (PDS) for full details.
    • Risks – Risks include dilution of percentage ownership and the value of interests of non-participating Unitholders, borrowing risks, the illiquid nature of an investment in the Fund and fluctuation in the value of the Fund’s assets and income. Refer to section 6 of the PDS for further details.
    • Condition precedent – The issue of new units under the Offer is conditional upon the execution of a new senior debt facility, which Arena expects to complete prior to the Allotment Date. Refer to page 15 of the PDS for further details.

    Find out more

    Please call Arena on 1800 008 494 or email info@arenainvest.com.au for further information.

    Downloads

    To download the PDS (which includes the key benefits and risks of the Offer), along with other important reference material, please click on the links below.

    Fund Overview

    The Arena Property Fund (APF or the Fund) was established in 1992 and has a broad exposure to several quality assets across both traditional and non-traditional sectors, with a good geographic spread in Australia.

    The Fund invests in both directly held properties, and has exposure to property assets through investments in unlisted funds.

    APF focuses on investment in conventional commercial property, including office, industrial, and retail properties, as well as special purpose property such as medical centres, hotels and agricultural infrastructure.

    Portfolio Overview

    The Fund has a well diversified property portfolio with its largest weighting directed towards the office sector with quality assets in major capital cities of Australia. It also holds interests in the Arena Primary Infrastructure Fund and has exposure to non-Arena managed funds.

    Strategy of the Fund

    Historically the Fund has sought to invest in a diversified portfolio of direct and indirect property investments. This has included investments in funds managed by Arena and also funds managed by third party fund managers. However, in line with the view of many other industry participants, Arena now favours a simplified approach to real estate investing and therefore intends to progressively reduce the Fund’s exposure to indirect investments and reweight the portfolio toward direct investments.

    The Fund will not actively seek to invest in development activities. However, it may from time to time develop an existing asset to enhance rental yields. The Fund aims to provide Unitholders with regular income and moderate capital growth over the long term. Our objective is to provide long-term stability in the level of income distribution, net asset value (NAV) and unit price. The Offer is an important part of this strategy.

    For information on our Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) requirements click here .

    Arena Investment Management Limited ABN 23 077 235 879 AFSL No. 233190 has prepared this for general information only. It does not take into account your current or future financial circumstances. It is important for you to consider these matters before you make an investment decision on holding or acquiring these products. For further information please contact your financial planner or Arena Investor Services on 1800 008 494.