Indigenous Real Estate Investment Trust (I-REIT)

The Indigenous Real Estate Investment Trust (I-REIT) was established in October 2013 as an initiative of Indigenous Business Australia (IBA), to provide wholesale Indigenous investors the opportunity to invest in partnership with IBA and other Indigenous organisations in an actively managed property fund. The initial portfolio of 4 properties has increased to 9 whilst the number of Indigenous investors has increased from 4 to 25. At 31 December 2020 the property assets were valued at over $122 million.

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 30 June 2020 the portfolio comprises nine assets providing suitable accommodation for our 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 committee members

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

520 Flinders Street, Townsville QLD

Situated in the Flinders Street West precinct of the Townsville CBD in an improving office location and close to the new Queensland Country Bank Stadium. Completed in 2008, the Property provides 2,587 sqm of lettable area over ground and 2 upper levels plus basement parking for 35 vehicles. 

Key tenants include The Department of Veterans Affairs, Knight Frank and IBA.

Acquisition date:
October 2013
Valuation as at 30 June 2020:
$7.5m
Property Type:
97.9%, Retail 2.1% (by NLA)
Net Lettable Area:
2,575 m2
Weighted Average Lease Expiry:
2.86 years
Major tenant:
Commonwealth of Australia (522 m2)

Warabrook Shopping Centre, 3 Angophora Drive, Warabrook NSW

Warabrook Shopping Centre is located off Pacific Highway in a suburb of Newcastle, NSW. The Property dates from 1993 and comprises a single level Woolworths-anchored supermarket plus 8 speciality shops and a service station and customer parking for 277 vehicles. Following its acquisition Management implemented a remodelling of the speciality shops at a cost of around $1.0 million and following a re-leasing campaign the centre is now 98% leased (Dec 2020)  Woolworths has renewed its lease for a further 5 years and sales turnover has now increased above the threshold required for the payment of additional turnover rent.

Acquisition date:
30 November 2015
Valuation as at 30 June 2020:
$11.0m
Property Type:
Retail
Net Lettable Area:
4,333 m2
Weighted Average Lease Expiry:
3.29 years
Major tenant:
Woolworths Limited

Walkerston Shopping Centre, 8 Creek Street, Walkerston QLD

Walkerston Shopping Centre is situated on the Peak Downs Highway 14 kilometres south of Mackay QLD. The Property dates from 2006 and comprises a single level neighbourhood shopping centre anchored by a Woolworths supermarket with 7 speciality shops and parking for 179 vehicles.  The centre has recently benefitted from improvements to the public amenities. There is a single vacancy (Dec 2020) and Woolworths has committed to a new 5 year term.

Acquisition date:
June 2017
Valuation as at 30 June 2020:
$11.1m
Property Type:
Retail
Net Lettable Area:
3,264 m2
Weighted Average Lease Expiry:
4.69 years
Major tenant:
Woolworths Limited

28 Edgerton Road, Mitcham VIC

The Property is located in Mitcham approximately 22km east of Melbourne CBD and close to Eastlink and the junction with the Maroondah Highway. The building comprises a single level high clearance warehouse with a high office/showroom/production space component of 35%. The lettable area is approximately 5,584 sq m approx. with car parking for 68 vehicles. The property dates from 2012/2013 and is fully leased to Versalux Lighting Systems Pty Ltd as its national head office, on a long term lease with fixed annual rent increases.

Acquisition date:
October 2017
Valuation as at 30 June 2020:
$12.0m
Property Type:
Industrial
Net Lettable Area:
5,480 m2
Weighted Average Lease Expiry:
6.82 years
Major tenant:
Versalux Lighting Systems Pty Ltd

Clifton Village Shopping Centre, Corner Endeavour Road & Captain Cook Highway, Clifton Beach, Cairns QLD

Clifton Village Shopping centre is located on the Cairns northern beaches next to Palm Cove and approximately 22 kms north of Cairns CBD. The centre comprises a largely enclosed mall with some external tenancies and is anchored by a Coles Supermarket,  supported by 22 specialty shops. There are also two freestanding buildings, a service station plus convenience shop and also a gym. Parking for approximately 359 cars is provided on-site with 85% being undercover. The centre is 97% leased and currently a leasing campaign is underway to increase the retail offer by replacing Target with four new specialty retailers (Dec 2020). 

Acquisition date:
November 2017
Valuation as at 30 June 2020:
$34.75m
Property Type:
Retail
Net Lettable Area:
7,900 m2
Weighted Average Lease Expiry:
3.53 years
Major tenant:
Coles Supermarket Australia and Target Australia

Twin Highway Service Centres, Forrest Highway, West Pinjarra WA

These recently-built service centres are located on the east and west bound sides of the Forrest Highway at West Pinjarra, approximately 88 kilometres south of the Perth Central Business District. The two properties each occupy very large sites of 60,000 sq m and are almost identical in design. Both are individually leased to Caltex for 20 year terms. Each centre has a 150 seat food court with 5 food tenancies and external surface parking for 100 vehicles.

Acquisition date:
August 2019
Valuation as at 30 June 2020:
$16.25m each site
Property Type:
Retail
Net Lettable Area:
2,957 m2
Weighted Average Lease Expiry:
13.59 years
Major tenant:
Caltex

Katherine Government Centre, 5 First Street, Katherine NT

This property is located centrally in Katherine and comprises a two level office building with very large floor plates and having a lettable area of around 4,500 sq m with parking for 79 vehicles on a site of 8,110 sq m. The entire property has been occupied since it was built by NT Government which has committed to a new 15 year lease upon completion of alterations and fitout works due to be finished in mid 2022.

Acquisition date:
October 2013
Valuation as at 30 June 2020:
$12.0m
Property Type:
Office
Net Lettable Area:
4,492 m2
Weighted Average Lease Expiry:
15.68 years
Major tenant:
Northern Territory Government

43 Boulder Road, Kalgoorlie WA

This property is located within Kalgoorlie central business district and comprises a boutique freestanding two level office building having a lettable area of around 800 sqm with on site parking for 36 vehicles on a site of 2,173 sq m. The property dates from 2008 and is 70% occupied by the Commonwealth Government on a short term lease.

Acquisition date:
October 2013
Valuation as at 30 June 2020:
$1.7m
Property Type:
Office
Net Lettable Area:
823 m2
Weighted Average Lease Expiry:
0.50 years
Major tenant:
The Commonwealth of Australia
[1] An Eligible Investor is an entity:
  1. in which at least 50% of the beneficial interests are held by Aboriginal or Torres Strait Islander people; and/or
  2. that furthers the economic, social or cultural development of Aboriginal or Torres Strait Islander people; and
  3. 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).
Traditional Aboriginal Flags
IBA acknowledges the Traditional Owners of Country throughout Australia and their continuing connection to land, sea and community. We pay our respects to them and their cultures, to the Elders past, present, and emerging.
IBA Asset Management Pty Ltd