Indigenous Real Estate Investment Trust (I-REIT)
The I-REIT is an Australian, unlisted unit trust investing primarily in a portfolio of Australian commercial properties in four key sub-sectors; office, industrial, neighbourhood shopping centres and highway service stations. As at 31 December 2021 the portfolio comprises 10 assets providing a wide variety of accommodation for a range of different tenants, with further acquisitions planned.
By investing in the I-REIT, Indigenous investors derive an income stream and capital growth generated by the I-REIT's geographically diversified portfolio of commercial properties. Commercial property is a significant asset class that usually forms part of a diversified investment portfolio. A key benefit of the I-REIT for Indigenous organisations is access to returns from a range of properties that would otherwise require a very large capital outlay and incur significant acquisition costs.
In addition to financial returns, the Fund has sought to generate employment and supply chain outcomes for Aboriginal and Torres Strait Islander people through its property and facilities management arrangements.
Investments into the I-REIT and redemptions from the I-REIT can only be considered during approved trading windows. For more information about the I-REIT including the timing of trading windows please contact Investor Relations.
The Investment Manager
The Investment Manager of the I-REIT is IBA Asset Management Pty Ltd (IBAAM), a wholly-owned subsidiary of IBA. The Investment Manager has a majority of independent board members who bring significant experience in investment, governance and Indigenous affairs.
The Investment Manager undertakes the day-to-day management of the I-REIT, monitors the portfolio and identifies and conducts due diligence in relation to new investments or divestments.
The Investment Manager, in consultation with the Investment Committee (see below), intends to maintain a diversified portfolio whilst avoiding a concentration of characteristics that it believes may expose the I-REIT to excessive risk.
In addition to the I-REIT, the Investment Manager manages the Indigenous Prosperity Funds (IPF). The IPF provide eligible Aboriginal and Torres Strait Islander investors(1) with the opportunity to invest in a diversified portfolio of investments including exposure to Australian and international shares, bonds, property and cash. Further information regarding the IPF may be obtained here.
Investment Committee
The Investment Committee, comprises of a majority of independent professionals who approve key matters including:
- acquisitions and divestments;
- new leases or lease renewals that constitute 30% or more of the gross revenue of the relevant Property;
- debt finance facilities;
- material redevelopment or refurbishment of a property; and
- certain related party transactions.
Investment Strategy
The objective of the I-REIT is to generate attractive risk-adjusted returns to Unitholders over the medium to long term through exposure to a portfolio of commercial properties located in Australia.
Specifically, the Investment Manager will focus on commercial property investments that broadly have the following characteristics:
- a yield commensurate with the risk of the investment;
- the potential for capital growth over the medium to long term;
- a value of between $10 million and $20 million per investment; and
- are located in population catchments in excess of 15,000 people.
Properties
The information under each property description on this website is correct as at 31 December 2021.
Katherine Government Centre, 5 First Street, Katherine NT
This Property comprises an 8,110 sqm regular-shaped allotment with a two-level office building, with a total lettable area of 4,492 sqm. Car parking is provided for 79 vehicles (including 15 undercover). The building was completed in 1990 and was renovated in 2010, with an air conditioning upgrade in 2012. The Property is fully leased.
In August 2020, the tenant, Northern Territory of Australia and the Fund entered into an agreement for a new 15-year lease. The agreement for lease includes a commitment by the Fund to undertake significant refurbishment of the building. The capital expenditure works have commenced and are due to complete approximately November 2022. On completion of the works it is intended that the property would again be independently valued.
Amart Furniture, 40 Edward Street, Wagga Wagga, NSW
This property features a 2018 built freestanding bulky goods retail store with ancillary warehouse, having a gross floor area of 5,504 sqm on a site of 11,250 sqm. The property is wholly leased to Amart Furniture Pty Ltd.
5,504 m2
Clifton Village Shopping Centre, Corner Endeavour Road & Captain Cook Highway, Clifton Beach, Cairns QLD
This neighbourhood shopping centre is located in the Cairns northern beaches. The centre comprises a predominantly enclosed mall with some external tenancies, located within Clifton Beach, approximately 22 kms north-west of Cairns adjacent to Palm Cove.
The main centre complex is anchored by Coles Supermarket and supported by 22 specialty shops, two kiosks and three ATMs. There are also two freestanding buildings which include a fuel anchored convenience centre with four tenants and a pad site building accommodating 2 tenants. Target Australia vacated the property in April 2021. Parking for approximately 359 cars is provided on-site with 304 bays being undercover within the basement level.
7,731 m2
520 Flinders Street, Townsville QLD
Situated in the Flinders Street West precinct of the Townsville CBD, this Property was constructed in 2008. The Property has four levels, comprising retail and office space on the ground floor, two upper levels of office space and basement car parking for 35 vehicles.
Warabrook Shopping Centre, 3 Angophora Drive, Warabrook NSW
The Property comprises a well-established single-level neighbourhood centre constructed circa 1999 with a lettable area of 4,333 sqm. The centre is anchored by a Woolworths supermarket with a number of retail speciality stores including apparel, a pharmacy, a newsagent, a beauty salon and one ATM. Other tenants are a freestanding petrol and convenience store (Caltex branded but Woolworths owned), a medical centre and pathology lab. The centre contains 213 spaces.
A modernisation project was completed in 2018 increasing the retail offering and completely upgrading the tiling, painting, mall walkway and bathroom facilities.
Walkerston Shopping Centre, 8 Creek Street, Walkerston QLD
The property comprises a single level neighbourhood shopping centre which commenced trading in 2006 with a lettable area of 3,264 sqm. The centre is anchored by a Woolworths supermarket with five retail speciality stores comprising a coffee shop, butchery, pizza shop, takeaway outlet, liquor store, one ATM and a video kiosk.
28 Edgerton Road, Mitcham VIC
The property comprises a single level showroom/office and an office car park which was constructed circa 2012-2013. The property is wholly leased to Versalux Lighting Systems Pty Ltd.
Twin Highway Service Centres, Forrest Highway, West Pinjarra WA
The two newly built service centres are located on the east and west bound sides of the Forrest Highway in the southerly locality of West Pinjarra, approximately 88 kilometres south of the Perth Central Business District. The two Properties (each is on separate title) are almost identical and are leased to Ampol (20-year leases) and include a 150-seat food court with three retail tenants and more than 100 vehicle parking spaces.
2,937 m2 (South Pinjarra)
2,937 m2 (North Pinjarra)
13.46 years (North Pinjarra)
43 Boulder Road, Kalgoorlie WA
This Property features a two-storey office building, providing ground-floor office accommodation with a front reception and waiting area, meeting rooms and general offices. The upper floor comprises office and boardroom space. Both floors have bathroom facilities. Onsite car parking is available and is secured by an electric gate. Construction was completed in 2004.
784 m2
- in which at least 50% of the beneficial interests are held by Aboriginal or Torres Strait Islander people; and/or
- that furthers the economic, social or cultural development of Aboriginal or Torres Strait Islander people; and
- c. that is a Wholesale Investor (as defined in section 761G of the Corporations Act) making an initial investment of at least $500,000 (unless a lower amount is approved by the Trustee).