🏢 In a shifting macro environment, we believe our flagship PanGen Australian Real Estate Fund (PAREF) is strategically well-positioned.
We see a tale of two markets 📉📈
Downside risks are rising for non-core strategies holding secondary-grade assets with higher financial or operational leverage. In contrast, today’s conditions continue to support PAREF’s focus on high-quality, core Australian property with low leverage:
🛡️ Inflation resilience via real assets: We’re seeing robust rental growth that we expect to remain strong and likely outpace inflation—supported by strong population growth and a tightly constrained supply outlook (further pressured by rising construction costs).
💰 More compelling entry pricing: Ingoing yields (cap rates) are materially more attractive after significant repricing post‑pandemic and the subsequent rate-hike cycle.
🏛️ Institutional “flight to quality” gathering pace: Many investors remain underweight Australian core and are looking to deploy into the best-performing tiers of the market. Evidence of this includes two of our cornerstone investments that recently completed major capital raises in excess of $1.2 billion.
📊 Portfolio benefits: Research supports the role of core property in improving risk-adjusted outcomes—diversification, stable and growing cashflows, inflation protection, capital preservation, lower drawdowns, and an improved Sharpe ratio.
✅ Accordingly, we believe PAREF is well-positioned to deliver attractive, risk-adjusted returns for investors.
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PanGen Capital Pty Ltd (AR No. 1313733) and Ryan Bass (AR No. 1313763) are Authorised Representatives of Orsaro Capital Pty Ltd (AFSL No. 524448). Unless specifically stated, this message does not constitute formal advice or commitment by any of the above-mentioned parties. Nothing in this message is intended as personal financial product advice.