Property Investment Trust

Become a co-owner in commercial properties in Australia through Avari s property investment trust. Learning more about our property investment today.

What is Property Investment Trust?

If you are looking for a way to invest in large commercial property, but don't have the time or inclination to manage it, Property Investment Trusts might be your answer. Property investment trusts allow investors to pool their money togetlier and buy a commercial property without having to actively manage it. This makes Property Investment Trusts an attractive option for people who are looking to get into property investment but lack the skills and resources to manage it.

At Avari, we have been delivering returns of 20% IRR in Australian real estate since 2014. Currently, we are managing 1 billion AUD of assets. Our investors are comprised of high net worth individuals, private wealth, hedge funds and financial institutions. Our reputable presence and past performance have developed many long term clients and networks in the industry.

Our Approach: Real Estate Investment Trusts

Core+ Core+ property investments are usually office assets with a relatively stable income level and may have some value add opportunities. Usually these opportunities do not involve a major amount of CapEx work or development but could include under-utilised spaces, lower than market face rents or leases not correctly structured to maximise value. The team would look to refurbishment, changing lease structures or upgrading services as a way to increase rents which leads to increased asset value.

Logistics Logistics and industrial centres are a favoured asset class at Avari. We generally target smaller centres closer to residential areas rather than purpose-built major distribution centres. Traditionally the industrial segment offers strong yields and generally longer lease terms. An opportunity to add value in this space is often conversion to small strata suits which works well particularly when close to major CBD locations. The smaller suites generally command a premium compared with a single larger warehouse.

Special situations Special situation investing is a broad category but can often be a distressed asset such as a vacant office or warehouse or an asset with a larger problem to fix such as major CapEx or development, to add value will often require a larger capital contribution and a lower income level during the investment period but ideally a strong capital return.

Avari’s Investment Approach

We are constantly reviewing property opportunities, most of which we will not end up buying as there is an issue that we cannot resolve and we feel the risk is too high. We analyse over 1,000 properties per year, our team will perform an initial review and detailed analysis if we like what we see in the first stage, this may be a few hundred properties in a year. Approximately 30-50 will move to the next stage and our team will perform our due diligence and submit an expression of interest EOI). Our team will only progress with a transaction for a property that we are very confident in producing a positive outcome for our investors. This is why we generally only offer up to 5 property trusts in a year.

Diversified Real Estate Investment Trusts & Syndicate

There are a lot of undervalued assets which once repositioned can provide solid returns, our team works hard to seek and assess these potential properties. Occasionally we are able to buy an asset "below its replacement cost" which means the cost to build is less than the purchase price. We look at thousands of properties each year to find the few that meet our investment criteria.

Once we buy a property our property management team has a variety of initiatives to add value to an asset and maximise the returns. For instance, if an asset is lacking tenants due to run down or missing amenities, our team are ready to refurbish, redevelop, reposition or rezone when necessary.

Lastly we employ an agile approach to our investment management. When the time in the property market is right, we will make a move to exit and with the goal of obtaining the maximum gains for our investors while minimising the risk.

Getting Started in Real Estate
Investment Trusts

Interested in being a co-owner in property or real estate investment trusts? Simply submit your details to receive a call from our investor relations team. We will walk you through the available property trusts and can provide information on past investments.

MELBOURNE OFFICE

Suite 1, Ground Floor, 355 Spencer Street, West Melbourne VIC 3003

+61 3 9614 4888

info@avaricapitalpartners.com.au