EG LFR Active
Income Fund

An open-ended wholesale fund investing in a diversified portfolio of quality Australian large format retail property.

The EG LFR Active Income Fund is an unlisted investment available to Wholesale Clients and Professional Investors only. Investors generally qualify as Wholesale Clients under section 761G of the Corporations Act 2001 (Cth) where:

• Investment is $500,000 or more;
• Investor has net assets of at least $2.5 million; or
• Investor has earned at least $250,000 in each of the last two financial years.

Fund overview

The EG LFR Active Income Fund is an open-ended vehicle targeting a $300 million diversified portfolio of Australian large format retail assets.

The Fund is an income centric, core-plus strategy. Value will be driven at income producing centres through value-add initiatives, tenant optimisation and leasing. Tenant-led developments will also be pursued where EG can leverage its in-house planning and development capabilities to create additional value.

The Fund will be seeded by two income-producing, metropolitan Sydney centers proving distributions.

  • Structural demand growth: Demand is supported by long-term growth in population, household formation, employment and incomes, driving increased spending across home-related, everyday-needs and service-oriented categories.
  • Significant supply deficit: Planning, zoning and construction-cost barriers are restricting new floorspace delivery, while the forward pipeline remains well below the long-run average - concentrating growing demand into existing assets.
  • Strong rental performance: Tight vacancy, low incentives and resilient tenant demand have supported strong rental growth relative to other retail formats.
  • Compelling total-return outlook: A forecast continuation of rental growth is expected to support attractive investment returns, with limited reliance on cap-rate compression.
  • Credit-grade tenants: Rent rolls are typically dominated by national retailers on long leases, with strong covenants and limited incentive to vacate when suitable replacement space is scarce.
  • Attractive income returns: LFR typically attracts higher income relative to traditional retail formats, supported by higher initial yields, lower incentives and stronger rental growth.
  • Scalable asset class: A fragmented ownership base provides a clear runway to aggregate assets and create value through consolidation.
  • Deepening tenant pool: Traditional homemaker tenants are being increasingly challenged by alternative uses - medical, gymnasium and recreational to name a few - creating greater strategic optionality and driving competition.
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Open for investment

13%+ p.a.

Target return (IRR) over the investment term*

6.5% p.a.

Forecast income, paid monthly*

Key terms

Detail

Fund type

Open-ended wholesale unit trust (unregistered MIS)

Target fund size

$300 million GAV

Seed Assets

(1) 1 Rowood Road, Parkwood NSW

(2) EG Punchbowl Property Trust — Punchbowl, NSW

Distributions

Forecast 6.5% p.a., paid monthly in arrears*

Target gearing (LVR)

50–55%

Minimum investment

$100,000 ($25,000 additional)

Initial unit price

$1.00 per unit

Eligible investors

Wholesale Clients only (s761G)

Why large format retail, why now?

Population & income growth

Australia’s population is forecast to grow a further 15% by 2035, driving demand across the household-goods and everyday-needs categories that fill LFR centres.

Supply constraints

New LFR supply over the next five years is forecast to run ~26% below the ten-year average. National vacancy has already fallen to 2.8%.

Rental growth, not cap-rate compression

Rents are up 21% nationally since 2020, and 31% in Sydney. CBRE forecasts ~5% p.a. rental growth to 2030 — an income-led return story.

A proven manager

EG Funds Management controls 35 properties worth ~$1.7 billion and has acquired six large format retail assets over the past five years.

Looking to invest? Here's how

1

Read

Read the Information Memorandum in full.

2

Consider

Consider the offer, paying particular attention to the risks set out in the Information Memorandum.

3

Consult

Consult your financial adviser, accountant and other professional advisers.

4

Apply

Complete the application form. The minimum initial investment is $100,000.

Ready to find out more?

Request the Information Memorandum or speak with the EG Private Wealth team.

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