NOW Closed – Now closed to investment.

Fund facts

Asset Class
Global Real Estate
APIR
ETL0460AU
ASRN
609 038 600
PDS Date
March 18, 2016
Suggested Investment Period
5 - 7 years
Distribution
Annually as at 30 June
Redemptions
N/A - The Fund is closed ended
Applications
Closed to new investment
Wrap Access
BT Wrap and others. Please speak with Spire Capital regarding platform availability
Investment Partner

Spire USA ROC III Fund (AUD) (the Fund) is the fourth US property-related fund created for Australian investors via the strategic partnership between Spire and US based Bridge Investment Group Partners, LLC (Bridge).

The Fund will invest as a single Limited Partner in a Partnership known as ROC Multifamily & Commercial Office Fund III LP (ROC III), for which Bridge is the Investment Manager. The Partnership is anticipated to comprise US and global institutional investors, endowment funds and family offices.

The ROC III Partnership has a total target equity amount of US$750 million. The Fund is expected to invest between US$50 million and US$100 million, subject to demand via this offer.

ROC III follows predecessor funds ROC I (2009 vintage / US $124 million equity with US$16 million in co-investment) and ROC II (2012 vintage / US$595.5 million equity). As at 30 September 2015, ROC I and ROC II had generated (USD denominated) net Internal Rates of Return (IRRs) of 16.3% p.a. and 28.3% p.a. respectively – and net multiples on invested equity of 1.76x and 1.49x respectively. However, it is important to bear in mind that the past performance of ROC I and ROC II is not a reliable indicator of future performance for ROC III.

Like ROC I and ROC II, ROC III will acquire a portfolio of value-add multifamily and commercial office properties on a ‘buy, fix, sell’ basis. ROC III will have a 3-year Investment Period (expiring January 2018) following which the 5-year Harvest Period will commence.

As at April 2016, an initial 25 properties have been acquired or placed under contract for approximately US$1.1 billion.

These investments are forecast by the Investment Manager, Bridge IGP,  to generate an average deal level 3 year cash- on-cash return of 8.7% p.a., a 19.1% gross IRR and a 1.92x net equity multiple.

The Fund aims to provide investors with an annual income stream and future capital growth from a diversified portfolio of quality properties, each of which Bridge has identified as having realisable value-add potential. The execution of value- added business plan for each asset is designed to enhance Net Operating Incomes and values.

The Fund operates on a total return basis and as such will not measure its returns against a benchmark.

Units in the Fund will not be listed or actively traded and should be considered as a long-term investment. Invested capital is expected to be progressively returned as each asset is stabilised and sold primarily during the Harvest Period, which will begin in January 2018. Alternatively, a portfolio sale or IPO exit could result in a complete return of capital at a single date within the Harvest Period.

The Fund is designed for Australian investors to increase their allocations to both global investments and alternative investments.

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned 4 January 2016) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners. com.au/ RegulatoryGuidelines.

Ordinary Units

Performance as at 31 August 2019 Net Returns*
1 month6.84%
3 months7.23%
6 months15.12%
1 year17.97%
3 years p.a.11.79%
Since inception p.a.10.61%
Since inception42.35%

*Performance returns are based on an investment made at the Fund’s first issuance of units in March 2016 at $1.00 per unit and includes Unit Price growth from commencement of Net Asset Value calculated after all fees and expenses following the completion of capital raising in August 2016. 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 Issue Price at which they were issued Units in the Fund, which in turn was based upon the AUD / USD exchange rate applicable in the month in which an investment was made. Past performance is not an indicator of future performance.

Date Unit Price Net Monthly Return
31 August 2019$1.00926.84%

PDS/IM & Forms

Product Disclosure Statement with Interactive Application Form
pdf
Off Market Transfer Form
pdf
Change of Contact Details Form
pdf
Change of Advisor Form
pdf
Change for Bank Details Form
pdf
TFN/ABN Notification Form
pdf

Research

Zenith Research Report
pdf
Fund Flyer
pdf

Monthly Fact Sheets

PeriodDistribution Amount (cents per unit)EX PriceDistribution Component
30 June 2019 26.4595 CPU cash; 1.5624 CPU FITOs $0.9283
30 June 2018 7.4290 CPU cash $1.0271
30 June 2017 2.1829 CPU cash $0.9233