The 2024/25 financial year is shaping up to be a very busy one for Natgen, both in relation to existing Natgen Trusts and also for future initiatives.
In relation to Natgen Investment Trusts, we see ongoing value in various property categories based on the replacement cost of assets and the medium term impact this will inevitably have on rental rates and occupancy costs for tenants.
Well-located regional retail assets will maintain value and income generation potential. As always, we prefer retail categories which demonstrate low elasticity of demand, namely food retailing, household items retailing, and service delivery to regional consumers. These are our bread-and-butter tenants within our existing shopping centres and will continue to be vital in the future of the various Natgen portfolios.
Our sociological observations regarding non-capital city CBD office assets are playing out across the regional markets which we follow. As such, our focus remains on this style of asset as time progresses. Whilst eventually CBD office assets will reset, the short/medium term opportunities exist in our areas of focus.
Whilst premium industrial assets remain fully-priced, there remain opportunities in the industrial space where income return can be enhanced either during the latter parts of lease terms or upon the re-leasing of assets at the end of long reversionary lease terms. Natgen will seek to leverage our growing development expertise to isolate and consider these opportunities.
Development management is an important skillset within the Natgen business offering. With personnel growth in the past year, our development skills have continued to broaden. We envision future development offers during the 2024-25 year, as existing development projects mature and head toward practical completion.
Another addition to our list of value opportunities in commercial real estate is Specialty Assets. In my parlance, this includes properties which house specialty services, such as carwashes, medical centres and any other locationally-relevant businesses.
Location: 116 Siganto Drive Helensvale, QLD & 76 Lake Street, Cairns QLD
Investment Status: FULLY SUBSCRIBED
Purchase Date: May 2024
Purchase Price: $14.25M
Return: 9.02% per annum (Paid Monthly)
Fund Term: 5-6 Years
Tenants: Diverse tenancy profile of national and local tenants. Tenants include Commonwealth Bank of Australia and Alder Group.
Natgen Investment Trust CO24
Location: Johnstone Street, Collie, WA
Investment Status: FULLY SUBSCRIBED
Purchase Date: February 2024
Purchase Price: $10M
Return: 8.5% per annum (Paid Monthly)
Fund Term: 5-6 Years
Tenants: Woolworths supermarket and 8 specialty tenants
CO24 & QC24 Settlements + Update
Collie Central Shopping Centre, the central asset of Natgen Investment Trust CO24, was settled into the Trust on 1 May 2024.
The Natgen Investment Trust QC24 assets include:
- 76 Lake Street, Cairns – a two storey banking / office building in the heart of Cairns. The ground floor consists of a modern banking chamber, together with business banking facilities. The upper level of the building has been refurbished and divided into office suites, leased to a variety of tenants under a head-lease arrangement to Hyatt Legal. The Trust settled the acquisition of this property on 12 July 2024.
- 116 Siganto Drive, Helensvale – Alder Place is a trophy office building of 4 levels, facing the M1 motorway at Helensvale on the northern end of the Gold Coast. A winner of a Master Builders Association national award for design, the building provides high standard office accommodation for its four tenants, including Alder Constructions, which built the building and remains as the anchor tenant.
The Trust settled the acquisition of this property on 18 July 2024.
At Natgen, we feel it is important that our investors are kept well informed as to the progress of their investments. On this basis, you can expect to hear from us as follows:
- Monthly Distribution Statements – each month when distributions are transferred to your nominated bank account, you will receive an emailed distribution statement and an SMS confirming the transfer.
- Quarterly Reports – in October, January and April, you will receive an update on the progress of the Trust property, including general management matters and important information about future matters.
- Annual Report – following the end of the financial year (30 June), you will receive an Annual Report, including audited financial statements for the Trust. We aim to have the Annual Report released by the end of August each year.
- Annual Tax Statement – with the Annual Report, you will also receive a Tax Statement outlining the information required to be included in your annual tax return.
We are pleased to welcome Peta Tilse to the Natgen family as Head of Funds Management. Previously holding a similar position at the listed Cromwell Property Group, Peta brings over 25 years’ financial service experience gained in funds management, and wealth management. As a top performing fund manager, Peta managed institutional cash and fixed income portfolios (in excess of $5b) for Suncorp Investments, and as an Executive Leader, led Cromwell Property Group’s Retail Funds Management business.
Natgen provides clients with well-considered, carefully measured commercial investment opportunities, accompanied by professional advice from our experienced leaders.
If you’d like to be notified of future investment opportunities, request an Investor Information Pack or contact us directly at invest@natgen.com.au
