NOW AVAILABLE – Now open to new investment.
Spire Capital (‘Spire’) continues to have high conviction in US Multifamily real estate as a resilient source of absolute returns with low correlation to traditional asset classes. This conviction was tested throughout 2020 as the Covid-19 (C-19) pandemic impacted financial markets and real estate sub-markets across the United States. The asset class is proving again to be a safe-haven showing strong resilience owing to a highly diverse tenant base, strong rent collections, stable occupancy and improved financing costs. Throughout 2020, leading operators were able to realise improvements in occupancy and rental growth. The Spire Multifamily Growth and Income Fund (AUD) (‘the Spire Fund’) seeks to deliver steady returns (net 7-11% over rolling 5 year periods) from a diverse portfolio of US multifamily assets.
The Spire Fund is scheduled to be incepted on 1 March 2021 and serves as an AUD denominated Australian unlisted unit trust that feeds into the Cortland Growth and Income, L.P. (‘Underlying Cortland Fund’). The Underlying Cortland Fund is an open-ended structure with a mature portfolio of US multifamily assets. The Spire Fund has been created to provide Spire clients with access to the Underlying Cortland Fund with a monthly liquidity feature. To facilitate said liquidity, a target allocation of 20% will be invested in the Liquidity Portfolio which will contain Listed Global Real Estate and Cash. The former will be accessed via an exchange traded fund called the VanEck Vectors FTSE International Property (Hedged) ETF – (ASX: REIT).
The Investment Manager for the Underlying Cortland Fund is Cortland Partners LLC (“Cortland”). Headquartered in Atlanta, GA, Cortland is a vertically integrated operating platform with over 1,800 dedicated employees across eight offices in the United States, London, and Shanghai. Cortland is a high-quality investment manager who serves an institutional clientele. Founded in 2005, Cortland specialises in high-growth US cities and suburban sub-markets located in the South-East and South-West United States. The firm manages a portfolio comprised of over 60,000 units and USD 12.1bn in Gross Real Estate Asset Value (as at Q32020).
As of 31 December, 2020, the Underlying Cortland Fund’s portfolio consisted of 33 multifamily assets comprising 10,999 units located in 10 metro areas: Atlanta, Columbus, Charlotte, Dallas, Denver, Fort Worth, Houston, Orlando, Phoenix and South Florida. The Portfolio was valued at a GAV of USD 2.27bn with NAV of USD 1.12bn. Approximately 70% of the Portfolio is Core-plus, 26% is Core-plus (Lease up) and 4% Value-Add. Occupancy stood at 89.6%.
Rochford Group has been engaged by Spire Capital as the currency overlay manager for the Fund. Rochford Group will implement a hedging program using rolling one to three-month forward contracts with a target hedge ratio of 100%.
|Performance as at 31 October 2023||Net Returns|
|Since Inception p.a.||-2.50%|
*Past performance is not an indicator of future performance. Performance table is based on an investment made at the Spire Fund’s first issuance of units on 30th April 2021 at $1.00 per unit and includes Unit Price growth from commencement of NAV based unit pricing. Unit Price and performance do not include the value of Foreign Income Tax Offsets (FITOs) which have been distributed in addition to cash. Individual investor performance will vary according to the Application Price at which they were issued Units in the Spire Fund.
|Date||Unit Price||Net Monthly Return|
|31 October 2023||$0.8879||-4.03%|
|Period||Distribution Amount (Cents per unit)||Ex Price||Distribution Components|
|30 June 2023||1.4080 CPU Cash; 0.0399 CPU FITOs||$0.9736||SPIRE Distribution Components|
|31 December 2022||1.7775 CPU Cash; 0.0504 CPU FITOs||$1.1456|
|30 June 2022||2.0248 CPU Cash; 0.0138 CPU FITO's||$1.1758||SPIRE Distribution Components|
|31 December 2021||0.9363 CPU Cash; 0.0064 CPU FITO's||$1.0852|