EG LFR Active
Income Fund

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

The EG LFR Active Income Fund is an unlisted commercial real estate 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 the:

• 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.

Open for investment

13.0%+ p.a.

Target equity IRR
(net of all fees and Trust-level costs, but before tax).

6.5% p.a.

Target distributions
(paid monthly in arrears) after the Fund Stabilisation Period.

Key terms

Detail

Fund type

Open-ended wholesale unit trust (unregistered MIS)

Target fund size

$300 million Gross Asset Value

Seed Assets

(1) 1 Rowood Road, Prospect NSW

(2) EG Punchbowl Property Trust — Punchbowl, NSW

Target Average Distributions

6.5% p.a., (paid monthly in arrears)

Target Equity IRR

13.0% p.a. (net of all fees and Trust-level costs, but before tax)

Minimum investment

$100,000 initial investment ($25,000 for subsequent investments)

Initial unit price

$1.00 per unit

Eligible investors

Wholesale Clients only (s761G)

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 leasing, tenant-mix optimisation and targeted upgrades. 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 centres providing monthly distributions from inception.

What sets large format retail apart?

  • Attractive income returns: LFR typically delivers higher income distributions relative to traditional retail formats, supported by higher initial yields, lower incentives and stronger rental growth.
  • 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.
  • 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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Why invest in the sector now?

Population & income growth

Australia’s population is forecast to grow a further 15% by 2035, driving demand across the daily needs, home, lifestyle and service categories that dominate 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%.

Strong rental growth outlook

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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