Invest in quality properties with the flexibility to cater to various industrial needs, that are in growth areas close to important transport routes.

Focus on under rented industrial properties or with leases with regular rent increases, fitting Simply Industrial’s strategy of buildings’ doubling their value approximately every ten years, subsequently increasing revenue and capital returns for shareholders.

Focus on properties valued between $2m and $5m that are not of interest to large property funds.

Invest in properties with high seismic rating to reduce risk and insurance costs and increase appeal to tenants.

Long-term buy and hold strategy. Seek opportunities to increase annual returns by purchasing properties with near-term rent reviews, or under rented.

Target properties that are standalone (for example - they are not restricted by a body corporate or subject to body corporate fees).

Focus on keeping things simple: structure, management and buildings.

As much as possible focus on simple warehouses.

Target leases with national or international companies in place and/or personal guarantees in place.

The lease is a huge part of the equation, with annual increases and regular rent to market reviews where we can. Additionally targeting leases that have upside for the value of the building. This may mean new leases at the end of the term. The Directors believe ‘you make money when you buy’ and commercial real estate is all about math: value determined by yield (ROI).

Maintain a simple low overhead model that is not top heavy with management and with compliance and exorbitant fees.

Patience: seek out properties that have: Potential to double in value in approximately ten years and have large gaps between existing and replacement value.

Change quickly: be in a position to change with market conditions ie building funds to ‘slam dunk’ purchases for better deals without bank debt (bank funding post settlement).

LVR’s: continue to retain low LVR’s (Loan-to-Value Ratio).

Provide a safe and transparent industrial fund for investors where majority of the returns are passed on to the investors, with strong governance and low overheads.

The primary focus of the Simply Industrial fund is on generating long-term capital gains through rent increases and building revaluations, rather than paying high short-term dividends. The fund aims to create sustainable value for its investors over the long term by driving revenue and profit growth while keeping overhead costs low. While the fund may increase dividends whenever possible, the focus is on creating long-term value rather than generating immediate returns through high dividends.