15 February 2019
Newmark Hardware Trust – Media Release
NEWMARK CAPITAL INTRODUCES PROVEN INVESTMENT OPTION
WITH NEW FEATURES, NEWMARK HARDWARE TRUST
Newmark Capital expands investments in major national retail stores with the Newmark Hardware Trust
Newmark Capital has introduced a new investment opportunity, the Newmark Hardware Trust, as part of its strategy to continue to deliver more flexibility for investors while maintaining its disciplined approach to investing.
The Trust is an open-ended, unlisted property trust. It is a restructure of the Newmark Property Hardware Trust No. 1, which was a fixed term, unlisted property trust.
Newmark Capital will seek to invest in a diversified portfolio of sector-leading, major national retailers located in strong and growing local economies, particularly those with high barriers to entry and long leases with quality retailers, to grow the Trust. This transition into an open-ended Trust is the result of the recent unitholder meeting which voted in favor of the restructure.
Newmark Capital’s objective for the Trust is to deliver consistent income distributions paid quarterly along with tax deferred benefits and long-term income and capital growth to investors. The Trust’s forecast for the 2019 calendar is to distribute 8.5 cents per unit, equivalent to 6.0% annual income return.
The Trust will offer investors benefits including:
- an ongoing investment opportunity and continued exposure to a portfolio of quality properties;
- potential capital growth through opportunity to further improve the performance of the Trust’s properties, and
- initial, and ongoing liquidity, including the ability to apply for Units on a daily basis and the ability to withdraw on a monthly basis.
Newmark Capital Joint Managing Director Chris Langford said the firm’s strategy is to selectively grow the Trust’s existing portfolio with other suitable investment properties and asset classes.
“We believe the new features of the Newmark Hardware Trust will bring significant benefit to our investors as we maintain our disciplined investment approach and focus on quality real estate.
“The strong performance of the existing assets [14.8% IRR since inception] in the Newmark Hardware Property Trust No.1 has been driven in large part by the selection of quality properties in strong local economies.
“We are confident these properties will continue to perform soundly for the foreseeable future and believe we will be able to identify other suitable investment opportunities and management initiatives that can deliver successful investment returns in the future,” said Mr Langford.
About the Newmark Hardware Property Trust No. 1
The Newmark Hardware Property Trust No. 1 was established in June 2014 with a fixed term of six years, following Newmark Capital’s purchase of Bunnings in Launceston, Tasmania.
Since that time, Newmark Capital has established a portfolio of commercial assets by purchasing two further properties located in Maroochydore, Queensland and Lake Haven, New South Wales.
“Our strategy is firmly focused on the needs of our investors, and backed by our careful, thorough analysis of the assets we choose to invest in with consideration to current conditions in the retail property market.
“We’re invigorated by the challenges and driven by the possibilities that arise from the right property,” said Mr Langford.