PAREF Delivers +10.5% vs -13.1% FOR A-REITs

Tue, 13 Oct 2026 15:07:44 +1100

Since inception 1 August 2025 to 30 September 2026

Listed A-REITs provide convenient access to property. But because they trade on public markets, their returns can also be influenced by equity-market sentiment and share-price volatility, sometimes independently of underlying property fundamentals.

With concerns around private credit risk increasing and policy settings making residential property investment less attractive, investors are also looking more closely at where defensive income and diversification can be found.

Core property offers a different portfolio proposition: income, long-term asset value, potential inflation protection and diversification from listed markets.

🎯 The performance gap: Since inception, the PanGen Australian Real Estate Fund (PAREF) has delivered a +10.5% return since inception in August 2025, compared with -13.1% for Australian listed REITs, while exhibiting substantially lower volatility.

For advisers, family offices and wholesale investors, we believe the portfolio case is compelling:

📊 Diversification: Core institutional real estate can provide a different return profile from listed equities, reducing reliance on public-market movements.

📈 Risk-adjusted stability: With its well-diversified portfolio focused on high-quality Australian shopping centres, logistics facilities and office towers, together with conservative gearing, PAREF seeks to deliver institutional-grade resilient returns without the same day-to-day pricing volatility as listed equity markets.

⚓ Portfolio Anchor: Adding core property can help absorb market shocks and improve overall portfolio resilience.

Investing in property does not have to mean accepting listed-equity volatility or being exposed to rising private credit risks.

☝ PAREF provides wholesale investors with efficient access to institutional-quality Australian core real estate — an asset class we believe is at a compelling point in the cycle.

PanGen Australian Real Estate Fund.Your Gateway to CORE Property.

About PanGen Capital

PanGen Capital aims to create high-quality real estate investments for clients to hold over the long term and pass on to the next generation.

✍ Invest in PAREF: Open to wholesale investors via our online portal, HUB24 Limited, Praemium and Powerwrap.

View the post on LinkedIn

------

IMPORTANT NOTES

The performance period is 1 August 2025 to 30 September 2026. PAREF returns are calculated after fees and costs, assume distributions are reinvested, and make no allowance for investor tax. Returns for periods greater than one year are annualised. Past performance is not a reliable indicator of future performance.

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.

Thinking about investing in property?

Wed, 02 Sep 2026 09:38:11 +1000

🤔 Concerned about residential and private credit headwinds?
🎯 Time to consider 'CORE' commercial real estate.

As policy debate around negative gearing and tax settings intensifies, some residential property investors are reassessing the risks in their portfolios. We are seeing growing interest from private investors and SMSFs in positively geared, high-quality CORE commercial real estate as a differentiated source of income and diversification.

For many investors, the priority is shifting toward inflation-resilient income, high-quality tenants, and portfolio diversification — without taking on the same development or refinancing risks embedded in higher-risk parts of the property market.

That is why we built the PanGen Australian Real Estate Fund (PAREF): to give wholesale investors efficient access to a diversified portfolio of institutional-grade CORE real estate, across high-quality assets and experienced underlying managers. 🏛️

When evaluating commercial property in the current environment, investors consistently ask two key questions:

1️⃣ How do rising interest rates and bond yields impact commercial property?

It comes down to distinguishing CORE from secondary or satellite strategies. CORE property is characterised by established, high-quality assets with conservative gearing and limited development exposure.

Three main tailwinds set CORE property apart today:

Resilient, inflation-linked income: Rental growth in prime assets typically tracks or exceeds inflation.
Conservative leverage: Low gearing levels can buffer portfolios against rising debt costs.
Supply constraints: Elevated construction and financing costs naturally restrict new completions, supporting occupancy and tenant retention in existing prime assets.

2️⃣ What about rising risks in private credit (specifically property credit)?

While headlines around property credit distress continue to build, PAREF’s CORE property strategy has negligible exposure (if any). A significant portion of private property credit is extended to property developers—an inherently higher-risk segment of the market. In contrast, stabilised, cash-flow-generating CORE property, backed by numerous blue-chip tenants, is not subject to these developer-led refinancing pressure.

💡 The Takeaway: Core Risk Core-Plus Return Potential

With attractive entry yields, resilient income fundamentals, and constrained new supply, institutional-grade CORE property offers a distinct risk-return profile relative to higher-volatility sectors.

We believe institutional-grade CORE property is now at a compelling point in the cycle, offering the potential to earn core-plus returns with core levels of risk.

👉 PAREF provides an efficient way to access this attractive asset class.