Advertisement
Advertisement
Advertisement
In an interview with InvestorTV.com, APGF Managing Director Geoff McMahon said the Fund had achieved a number of milestones in the latest half year.
“APGF recorded a profit after tax of $12.7 million. This resulted in the net asset value per stapled security increasing to $1.21, and the net assets increasing by 30 per cent to $260 million,” he said.
“Parallel with this result, we internalised the management company in December 2007 at an Extraordinary General Meeting of shareholders. This was an important milestone in APGF’s history as it aligns the interests of the managers with the investors.”
Brisbane’s booming commercial office market also benefited APGF, with the Fund recording valuation gains on its two Brisbane commercial office buildings. Blue Tower in the Brisbane CBD’s “golden triangle” district saw its valuation climb to $290 million from $263 million in the previous half year, while 99 Melbourne Street, South Brisbane, increased in value to $35 million from $33.3 million.
The Fund also expanded beyond its Brisbane base, settling acquisitions of the $60.75 million Westpac Concord Campus in Concord West, Sydney, and the regal $30.5 million Royal Bank Chambers building in Melbourne’s Collins Street.
Mr McMahon said: “In Sydney, APGF purchased the Westpac Concord Campus, which is leased to Westpac for five years, until October 2012. This building gives APGF a secure rental stream.
“In the same month of October, APGF settled the Royal Bank Chambers building at the corner of Collins and Elizabeth streets in the Melbourne CBD. This iconic building is leased to ANZ – once again a blue chip, secure tenant.”
On the development front, the Fund started construction on stage one of the $120 million Pavilions on 5th development at Palm Beach on the Gold Coast. Interest in the project has been growing, Mr McMahon said.
“Over half of the stage one residential apartments are now sold and the retail component of stage one is substantially pre-leased,” he said.
Stage one, which will involve the development of 104 residential apartments and 3,100 square metres of retail space, is due for completion by early 2009.
Meanwhile, Mr McMahon said the Fund’s property funds management business, which was acquired in June 2007, was “operating extremely well and ahead of expectations”.
The property funds management business encompasses 21 property trusts or syndicates with $400 million of assets under management.
Amid heightened concerns of gearing levels among property groups, Mr McMahon pointed to APGF’s conservative balance sheet and low gearing, with $28.3 million in cash reserves at the end of December 2007.
“We have no bank debt maturities until late 2009,” he said, adding that APGF had a hedging and interest cap program in place which protected the Fund from rising interest rates.
The managing director said the Fund remained focused on individual asset management, which had been a focus of management for the past 20 years.
“All of these elements position APGF well to take advantage of any opportunities that arise from the current market volatility,” Mr McMahon said.
“The outlook for APGF in 2008 is positive.”
“APGF recorded a profit after tax of $12.7 million. This resulted in the net asset value per stapled security increasing to $1.21, and the net assets increasing by 30 per cent to $260 million,” he said.
“Parallel with this result, we internalised the management company in December 2007 at an Extraordinary General Meeting of shareholders. This was an important milestone in APGF’s history as it aligns the interests of the managers with the investors.”
Brisbane’s booming commercial office market also benefited APGF, with the Fund recording valuation gains on its two Brisbane commercial office buildings. Blue Tower in the Brisbane CBD’s “golden triangle” district saw its valuation climb to $290 million from $263 million in the previous half year, while 99 Melbourne Street, South Brisbane, increased in value to $35 million from $33.3 million.
The Fund also expanded beyond its Brisbane base, settling acquisitions of the $60.75 million Westpac Concord Campus in Concord West, Sydney, and the regal $30.5 million Royal Bank Chambers building in Melbourne’s Collins Street.
Mr McMahon said: “In Sydney, APGF purchased the Westpac Concord Campus, which is leased to Westpac for five years, until October 2012. This building gives APGF a secure rental stream.
“In the same month of October, APGF settled the Royal Bank Chambers building at the corner of Collins and Elizabeth streets in the Melbourne CBD. This iconic building is leased to ANZ – once again a blue chip, secure tenant.”
On the development front, the Fund started construction on stage one of the $120 million Pavilions on 5th development at Palm Beach on the Gold Coast. Interest in the project has been growing, Mr McMahon said.
“Over half of the stage one residential apartments are now sold and the retail component of stage one is substantially pre-leased,” he said.
Stage one, which will involve the development of 104 residential apartments and 3,100 square metres of retail space, is due for completion by early 2009.
Meanwhile, Mr McMahon said the Fund’s property funds management business, which was acquired in June 2007, was “operating extremely well and ahead of expectations”.
The property funds management business encompasses 21 property trusts or syndicates with $400 million of assets under management.
Amid heightened concerns of gearing levels among property groups, Mr McMahon pointed to APGF’s conservative balance sheet and low gearing, with $28.3 million in cash reserves at the end of December 2007.
“We have no bank debt maturities until late 2009,” he said, adding that APGF had a hedging and interest cap program in place which protected the Fund from rising interest rates.
The managing director said the Fund remained focused on individual asset management, which had been a focus of management for the past 20 years.
“All of these elements position APGF well to take advantage of any opportunities that arise from the current market volatility,” Mr McMahon said.
“The outlook for APGF in 2008 is positive.”
