Press Releases

06-11-2006

Reed Property Trust delivers 8.5% to investors

After successfully launching the Reed Property Trust in September last year and now with $42 million in funds under management, Reed Funds Management Limited (RFML), a division of Reed Property Group, is growing at a rapid rate.

This month, the Trust delivered its first distribution, achieving the forecast annualised income yield of 8.5% per annum (before tax) to investors* who will continue to enjoy taxation advantages with the Trust’s quarterly distributions in excess of 90% tax-deferred until 30 June 2007.

Now fully subscribed, the Trust has appointed a new Sydney-based National Distribution Manager, Linden Toll who will work direct with investors and dealer groups to attract investment capital and will be responsible for raising capital for the Reed Property Trust.

Linden's 14 years experience in both domestic and international financial markets across asset classes (derivatives, fixed interest, equities and foreign exchange) allow him a solid understanding of how property investments can be used to enhance portfolio performance.

Linden said the point of difference with the Reed Property Trust is that investors, who have always wanted to buy a commercial property but couldn’t afford it, can do so with a minimum of $5,000.

“Reed Funds Management benefits from the opportunity to generate investment products that will cover the property life-cycle: development, construction, ownership and management, providing a rare and unique prospect for investors. We are able to offer investments that benefit from the Reed Property Group’s twenty year history of quality project delivery, “ Linden said.

Tory Richards, Director of RFML said the appointment of Linden reinforced a commitment to long term sustainable growth in the funds management area.  

“The success of Reed Property Group and the Reed Funds Management Ltd Division now means that we are able to attract people with major institutional backgrounds such as Linden,” Tory said. “He has held senior roles in both boutique and institutional organisations including Ord Minnett, Macquarie Bank, HSBC and Sanwa Bank.”

“The Trust has been embraced by investment consumers on a direct, intermediary and wholesale level and this gives us confidence to pursue growth opportunities,” she said.

“The Trust also recently received high acclaim from Morningstar in the portfolio section of the Australian Financial Review,” Tory said. “It was rated Morningstar’s leading choice in the property trust sector for funds ‘that dare to be different’. The article was positive about the exposure the Trust has to the ‘burgeoning south east Queensland’ sector, proving the depth of expertise in both the manufacture and management of funds within the group.”

The Trust is an investment product designed to provide high income returns with tax advantages to superannuation funds and private investors with a commercial property base.

The Trust remains open for investment with additional funds raised to be allocated towards the next round of property acquisitions. It is intended to add a further $60 million in assets to the Trust in 2006.

Tory said Reed Property Trust recently achieved well above investment grade ratings from research undertaken by PIR and Lonsec and the appointment of a National Distribution Manager adds depth to the powerful management capabilities of the RFML Board of Directors.

To request a copy of our Product Disclosure Statement for the Trust, please call toll free 1800 882 585, email info@reedfunds.com.au or visit www.reedproperty.com.au.

Disclaimer:
This is not an offer of investment in the Trust, nor a recommendation to invest.  To take advantage of this investment opportunity, please contact Reed Securities Pty Ltd (the Distributor) to be sent the Product Disclosure Statement or to attend one of our free information sessions. Tory Richards, Director Reed Funds Management, would also be very pleased to discuss further details as required. *Full details of the initial expected distributions, including the assumption on which they are based and the risks associated with an investment in the Trust, will be set out in the PDS.