APIL took time out to speak with its Managing Director, Peter Hughes, about what’s happening in the investment market right now.
Peter founded APIL in 2001 and has been in the property industry for more than 42 years. Over this time, he’s seen major changes hit the sector. We asked Peter to share his insights into how investors can get ahead, even during challenging market conditions.
Peter shed light on how APIL has evolved its own investment strategy, as well as tips for first time investors looking to step into the market with confidence. Here’s the full interview.
Q. What are your thoughts on the state of the investment market at the moment?
A. Whilst the current market conditions definitely have challenges, property has always proven a sound investment in the medium to long term. With current bank interest rates at historically low levels and bank term deposits becoming less attractive, there has been a continued level of interest in APIL investment opportunities.
Q. Have you made any changes in light of the current climate?
A. Yes, the types of properties we are considering for investors have to meet APIL’s strict investment criteria. Currently this is resulting in more industrial based properties being favoured by our acquisitions team, however, to make our assessment we always research and analyse the merits of each individual property and sector.
Q. What are some of the challenges faced by investors? There is so much information available and so many investment opportunities that it can be confusing.
A. APIL property syndicates give investors peace of mind, knowing their money is invested in bricks and mortar and managed by experienced property professionals. Each APIL syndicate is linked to an identified asset, in well located business precincts with high tenant appeal.
Q. Despite global economic uncertainty, you’re continuing to achieve solid outcomes for investors in the commercial property space. What’s the reason for this?
A. Knowledge and experience. APIL has been in business for nearly 20 years and has established 28 past and present property syndicates, with a value over $1 billion. APIL manages over 1,000 investors, including individuals, companies, SMSF’s and trusts along with 320 tenancies across Australia. APIL’s investment strategy provides investors with strong yields and potential for capital growth.
Q. Why should investors consider joining a commercial property investment fund? What are the benefits of investing with APIL?
A. APIL property syndicates provide investors with access to commercial properties generally beyond the financial reach of most individuals. The low entry cost of $50,000 allows investors to spread their risk by investing in multiple syndicates across different locations and sectors. Anyone can invest in an APIL syndicate.
Q. We understand you are closing investment opportunities for APIL’s Industrial Fund No. 1 after December of this year. Can you tell us more about this fund?
A. This fund is open to all investors (min $50k) and has a current cash distribution of 7.5%p.a. paid monthly. The Fund has recently acquired four strategically located industrial properties in WA, SA & QLD with a combined value of $60m and is expected to continue to acquire additional high quality industrial assets through to December 2020. The Fund has an 8-year term and long leases to ASX listed nationally operated or major state based tenants.
Q. Do you have any tips for first-time investors who are curious about investing in a commercial property fund but don’t know where to start?
A. First time investors can find the whole investment experience daunting, hence we recommend partnering with a professional investment syndicate like APIL to guide you through the process of investing in a Trust. APIL always welcomes new investors to our West Perth office to discuss investment opportunities, and our proven results are on display on our website.
Q. What else is on the horizon for APIL in 2020?
A. APIL anticipates having another industrial asset for the Industrial Fund in 2020 and perhaps a retail investment opportunity. In 2021 APIL is excited to announce regular free investment seminars for investors to help them understand more about investing in syndicated property.
For more information about investing in an APIL commercial property syndicate, please get in touch. Peter and his team of directors and managers are always happy to answer your questions or discuss whether investing in an APIL syndicate is the right move for you.
If you’d like to be the first to know about new APIL syndicate opportunities, you can register your interest here.
To view the recent article regarding the APIL Industrial Fund No. 1 in Brisbane’s Courier Mail please CLICK HERE