NOW Closed – Now closed to investment.
Fund facts
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.
Ordinary Units
| Performance as at 31 December 2020 | Net Returns* |
|---|---|
| 1 month | -4.56% |
| 3 months | -2.24% |
| 6 months | 0.41% |
| 1 year | 5.27% |
| 3 years p.a. | 15.35% |
| Since inception p.a. | 8.77% |
| Since inception | 50.21% |
*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 December 2020 | $0.6284 (EX) | |
| 31 December 2020 | $0.7765 (CUM) | -4.56% |
Monthly Fact Sheets
| Period | Distribution Amount (cents per unit) | EX Price | Distribution Component |
|---|---|---|---|
| 31 December 2020 | 14.8108 CPU cash | $0.6284 | |
| 30 June 2020 | 6.0701 CPU cash | $0.7733 | |
| 31 December 2019 | 21.6043 CPU cash | $0.7955 | |
| 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 |
|