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SQM Research Ratings Update -  Monday
July 27th 2015
Property Valuations
Research Reports
Discounted/Distressed Properties
Funds Research
Ratings Table

To see the entire table of SQM Research's fund ratings, click HERE

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SQM Research
Ratings Update



 
SQM Research is proud to announce the releases of SQM Research Global Property Sector Review 2015 and rating for Tower Central Trust.
 
                                                  *******

SQM Research has analysed five funds as part of its Global Property Securities Fund Review but one fund - APN Asian REIT Fund is Asian focused and has been excluded from this report. This document outlines the results of the assessment process, together with a brief summary of the global REIT market. Data included in the report is  current to 31 March 2015 unless otherwise indicated.

The four funds rated that form part of this report are: BT Wholesale Property Securities Fund, Principal Global Property Securities Fund, Resolution Capital Global Property Securities Fund and Presima Global Property Securities Concentrated Fund. The review for Presima Global Property Securities Concentrated Fund was undertaken out of  cycle in third quarter of 2014. At the time of the review, the Fund had a limited operating history of ten months; as such performance analysis for the Fund is limited in this report. One Fund – AMP Capital Global Property Securities Fund was reviewed as part of the 2014 review cycle but opted not to participate in this review  cycle.
 
As part of the review process, a comparison to the peer average has been utilised to gauge individual fund fee and performance, relative to the peer group. The peer group for the fee calculation comprised of twenty seven global property Australian domiciled funds. The peer group used for the performance calculation comprised of thirty one global property Australian domiciled funds.


                                                  *******

The Tower Central Trust (the Trust) is an unlisted property syndicate, investing in a single, modern commercial building in Ipswich CBD, some 32 kilometers south west of the Brisbane CBD.

The passing yield of the asset at acquisition will be 8.5%, with an estimated weighted average lease expiry of 3.3 years (by income).

The Trust aims to deliver a consistent monthly income to its investors. Distributions are forecast to be 8.00% p.a. up until 30 June 2017. The term of the Trust is five years from the Property purchase Settlement Date. The Fund Manager is permitted to extend the term for a further two years, with any extension beyond 7 years will require the approval of Unit Holders by a special resolution. Trilogy Funds may consider selling the Property earlier if it believes this is in the best interests of Unit Holders.

The Fund has received a 4-star rating.

To read the full reports, click here...

Research Methodology
In general, the assessment approach adopted by SQM Research incorporates a combination of qualitative and quantitative research techniques to assess property investment products,
 
Information generated is passed through the SQM Research assessment model at the completion of the assessment process. The assessment model generates a product score, which correlates to a specific star rating (out of a maximum of five stars). Each star rating covers a scoring range, allowing products to be ranked within quarter star increments.
 
Following are descriptions for each of the star ratings, which have been developed as a guide for dealer group research teams and investment committees:

4.5 stars and above – Outstanding. Highly suitable for inclusion on APLs.

4 stars to 4.25 stars – Superior. Suitable for inclusion on most APLs.

3.75 stars – Favourable. Consider for APL inclusion.

3.5 stars – Acceptable. Consider for APL inclusion, subject to advice restrictions.

3.25 stars – Caution required. Not suitable for most APLs.

3 stars – Strong caution required. Not suitable for most APLs.

Below 3 stars – Avoid or redeem. Unapproved.

Hold – The rating is currently suspended until SQM Research receives further information. A rating is typically put on hold for a period of 2 days to 4 weeks.

Withdrawn – The rating is no longer applicable. Significant issues have arisen, and investors should avoid or redeem units in the fund.


About SQM Research
 
SQM Research Pty Ltd is an independent property advisory, ratings and forecasting research house which specialises in providing accurate property related advice, research and data to financial institutions, property developers and real estate investors.
 
For more information please visit 
www.sqmresearch.com.au

Copyright © 2015 SQM Research, All rights reserved.

Our mailing address is: GPO Box 3611, Sydney, NSW 2001, Australia



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