AM launches property trust

AM Corporation has launched a property trust, AM Property Plus. The trust currently holds two office buildings — one in Queensland and one in Victoria — and is negotiating to purchase four more properties.

AM Corporation has launched a property trust, AM Property Plus. The trust currently holds two office buildings — one in Queensland and one in Victoria — and is negotiating to purchase four more properties.

Property investments national manager Ian Frost says the group is looking to invest in commercial office, retail and industrial properties across Australia in the $10-30 million range.

“We are looking at emerging markets, areas where we expect some growth,” he says. “AM Property Plus is a pure property trust incorporating income and growth, where properties will be sold to meet redemptions for unit holders.”

Frost says the group expects strong fund inflows through its LifeTrack funds and predicts returns in the vicinity of 11-15 per cent after fees — 7-9 per cent income and 4-6 per cent growth.

“We believe that this property trust addresses the property exposure needs for a wide range of investors,” he says.

“We are offering strong returns and, for medium-term investors, we have structured an orderly exit path when they want to move investments.”

The trust incorporates both income and growth assets and offers immediate redemption for diversified LifeTrack investors, redemption for selective investors at asset value after four years and borrowings set at around 40 per cent.