Folkestone winds up Real Estate Income Fund

20 October 2017
| By Oksana Patron |
image
image
expand image

Folkestone’s Real Estate Income Fund at Wollongong has announced that its unitholders had voted in favour of the sale of the fund’s sole asset, a six level A-Grade office building, for $46.1 million and the wind-up the fund.

According to Folkestone Funds Management, a responsible entity (RE) for the fund, the property had been sold to a private investor at a 67.5 per cent premium to the April 2013 $27.5 million acquisition price and a 33.6 per cent premium to the last independent valuation at 30 June 2016.

Folkestone’s managing director, Greg Paramor, said: “Given the strong demand for high quality office assets from both domestic and international investors, we decided to take advantage of the strong market and sell the property ahead of the fund’s expiry in 2019”.

“The sale price reflects an excellent result for our investors who will receive approximately $1.80 for each $1.00 invested and an internal rate of return of 23.6 per cent per annum (post fees, pre-tax) since inception of the fund four and half years ago.

“The result validates Folkestone’s active management of its unlisted funds on behalf of its investors,” he said.

Folkestone Funds Management said it expected to receive a performance fee of approximately $2.9 million in November 2017 when the property would settle and the fund would be wound up.

 

 

 

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

GG

So shareholders lose a dividend plus have seen the erosion of value. Qantas decides to clawback remuneration from Alan ...

2 months 1 week ago
Denise Baker

This is why I left my last position. There was no interest in giving the client quality time, it was all about bumping ...

2 months 1 week ago
gonski

So the Hayne Royal Commission has left us with this. What a sad day for the financial planning industry. Clearly most ...

2 months 1 week ago

A Sydney-based financial adviser has been banned from providing financial services in the interest of consumer protection after failing to act on conduct concerns. ...

3 weeks 5 days ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

17 hours 49 minutes ago

ASIC has cancelled the AFSL of a $250 million Sydney fund manager, one of two AFSL cancellations announced by the corporate regulator....

3 weeks 3 days ago