contents
Aventus Annual Report 2017
4 | AVENTUS RETAIL PROPERTY FUND
The Aventus Retail Property Fund (AVN
or the Fund) (ARSN 608 000 764 is listed
on the Australian Securities Exchange (“ASX”)
and invests in Australian retail property,
focusing predominantly on Large Format
Retail (LFR) centres.
The LFR property sector is a substantial
component of the Australian retail property
sector and accounts for approximately 30%
of total occupied retail floor space.
As at 30 June 2017, the Fund owned 20 LFR
centres in NSW, QLD, VIC, SA and WA valued
at approximately $1.4 billion. On 3 July 2017,
the Fund completed the acquisition of two
further LFR centres located in Castle Hill and
Marsden Park, NSW with a combined value
of $436 million. The AVN portfolio is now
valued at $1.8 billion.
The AVN portfolio is diversified by tenant base,
with national retailers representing 84% of the
total Portfolio by GLA. Approximately 87% of
gross annual income is subject to annual fixed
or CPI rent increases. The AVN portfolio has
minimal exposure to turnover based leases
which mitigate against the risk of a downturn
in retail sales.
The Fund is managed by an external
responsible entity, Aventus Capital Limited
(ACL or the Company) (ACN 606 555 480)
(AFSL No. 478061) which was appointed under
the Fund’s constitution and operates under an
Australian Financial Services Licence. ACL is
wholly owned by Aventus Property Group
Pty Ltd (APG).
APG is a specialist fund and asset manager
of LFR centres and the APG management
team provides key investment management
functions including asset management, leasing,
marketing, acquisitions and development,
providing an end-to-end service to manage
and identify value add opportunities across
the investment cycle.
The Fund has appointed two Aventus Property
Group (APG) companies: Aventus Funds
Management Pty Ltd and Aventus Property
Management Pty Ltd to provide fund and
property management services.
Key Elements of the Fund’s Approach
to Portfolio Acquisitions
yGeneration of stable income returns
predominantly backed by quality
national retailers
yPotential for capital gains and positive
rental growth
yOpportunity to add value add through active
asset management, such as optimising
tenant mix, development or expansion
yFlexible zoning and repositioning potential
yStrategic locations such as growth corridors,
large catchment areas and areas with
high propensity towards household goods
spending with proximity to main roads
yAbility to leverage existing tenant relationships.
Key Elements of the Fund’s Approach
to Portfolio Developments
The Fund is always seeking to expand,
reposition or revitalise existing properties in
order to enhance asset quality and improve
customer experience. It applies a disciplined
approach and takes reasonable steps to help
mitigate the development and delivery risk,
including securing leasing pre-commitments
and entering into fixed price contracts with
builders and other service providers. The Fund
limits development activities to no more than
15% of the gross asset value of the Fund
per annum.
Conservative Capital Structure
The Fund has adopted a conservative
approach to the management of its capital
structure to maintain balance sheet flexibility.
The Fund’s target gearing range is between
30%–40%.
ABOUT
THE FUND
Aventus prides itself on being proactive,
hands on and visible
Belrose
Super Centre,
NSW
+
ANNUAL REPORT 2017 | 5
4  |  AVENTUS RETAIL PROPERTY FUND ABOUT THE FUND Aventus prides itself on being proactive, hands on and visible The Aventus Retail Property Fund (AVN or the Fund) (ARSN 608 000 764 is listed on the Australian Securities Exchange (“ASX”) and invests in Australian retail property, focusing predominantly on Large Format Retail (LFR) centres. The LFR property sector is a substantial component of the Australian retail property sector and accounts for approximately 30% of total occupied retail floor space. As at 30 June 2017, the Fund owned 20 LFR centres in NSW, QLD, VIC, SA and WA valued at approximately $1.4 billion. On 3 July 2017, the Fund completed the acquisition of two further LFR centres located in Castle Hill and Marsden Park, NSW with a combined value of $436 million. The AVN portfolio is now valued at $1.8 billion. The AVN portfolio is diversified by tenant base, with national retailers representing 84% of the total Portfolio by GLA. Approximately 87% of gross annual income is subject to annual fixed or CPI rent increases. The AVN portfolio has minimal exposure to turnover based leases which mitigate against the risk of a downturn in retail sales. The Fund is managed by an external responsible entity, Aventus Capital Limited (ACL or the Company) (ACN 606 555 480) (AFSL No. 478061) which was appointed under the Fund’s constitution and operates under an Australian Financial Services Licence. ACL is wholly owned by Aventus Property Group Pty Ltd (APG). APG is a specialist fund and asset manager of LFR centres and the APG management team provides key investment management functions including asset management, leasing, marketing, acquisitions and development, providing an end-to-end service to manage and identify value add opportunities across the investment cycle. The Fund has appointed two Aventus Property Group (APG) companies: Aventus Funds Management Pty Ltd and Aventus Property Management Pty Ltd to provide fund and property management services. Key Elements of the Fund’s Approach to Portfolio Acquisitions yy Generation of stable income returns predominantly backed by quality national retailers yy Potential for capital gains and positive rental growth yy Opportunity to add value add through active asset management, such as optimising tenant mix, development or expansion yy Flexible zoning and repositioning potential yy Strategic locations such as growth corridors, large catchment areas and areas with high propensity towards household goods spending with proximity to main roads yy Ability to leverage existing tenant relationships. Key Elements of the Fund’s Approach to Portfolio Developments The Fund is always seeking to expand, reposition or revitalise existing properties in order to enhance asset quality and improve customer experience. It applies a disciplined approach and takes reasonable steps to help mitigate the development and delivery risk, including securing leasing pre-commitments and entering into fixed price contracts with builders and other service providers. The Fund limits development activities to no more than 15% of the gross asset value of the Fund per annum. Conservative Capital Structure The Fund has adopted a conservative approach to the management of its capital structure to maintain balance sheet flexibility. The Fund’s target gearing range is between 30%–40%. ANNUAL REPORT 2017  |  5 + Belrose Super Centre, NSW