360 Capital Diversified Property Fund
strategy
360 Capital's core focus in regards to the Fund is to implement the strategies of the underlying investment funds managed by 360 Capital. The Fund currently has investments in eight funds managed by 360 Capital Property Group and two funds managed by Centuria Property Funds. Given the Fund is a significant Unitholder in each of these underlying investments, the implementation of these strategies is expected to directly benefit the performance of the Fund. Fund performance is also enhanced by simplifying Fund activities and structures and implementing other cost saving initiatives.
In summary, the main initiatives for the Fund going forward are:
- Underlying investment performance – initiatives are currently being implemented in the Fund's underlying investments will have a flow-through effect to the Fund, including recommencement and increased distributions.
- Distributions – as a result of forecast increases in FY2012 annual distributions from the underlying investments, FY2012 forecast distributions for the Fund of 1.60cpu show an increase of 100% over FY2011 (before a special distribution of 2.42cpu following the wind up of the Becton Southlands Boulevard Property Trust and a substantial capital distribution from the 360 Capital 226 Greenhill Road Property Trust).
- Liquidity – a key objective following stabilisation of the underlying investments of the Fund will be to investigate liquidity options for those Unitholders wishing to exit their investment. This may take various forms including buyback of Units and redemption offers. One of the main criteria to any proposed liquidity event is to ensure that those Unitholders wishing to remain a Unitholder in the Fund are not detrimentally affected.
- Fund expenses – the Fund is currently on a number of wrap platforms, incurring considerable expense. Given the Fund is closed for redemptions and applications, 360 Capital is currently reviewing the benefit in remaining on the wrap platforms.
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