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AIMS Property fund eyes opportunities in Australian commercial real estate downturn

DUAL-listed AIMS Property Securities Fund is “strategically positioned” to take advantage of a downturn in the Australian commercial real estate market, which has begun to show signs of weakening, chairman George Wang wrote in a letter sent to unitholders.

He said that the tightening of bank lending is expected to “play a large role” in the downturn of commercial real estate market on the continent. As such, the fund is expecting the next few years to present “exceptional investment opportunities” that meet its long-term capital growth strategy, he wrote.

That view was included in a letter by Mr Wang thanking unitholders for siding with management and rejecting a recent attempt by investment firms Samuel Terry Asset Management and Sandon Capital to wind up the fund. Samuel Terry had also made a similar attempt in January last year, and failed.

In the letter Mr Wang said that every time activist unitholders attempt to wind up the fund, it consumes “immense amounts of labour and cash resources”, which he argued will be better spent on gaining returns.

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“Every windup attempt costs the fund and our unitholders a few hundred thousand dollars, which I personally feel is very painful and unfair,” he wrote.

“They are trying to take advantage of all our unitholders’ long-term benefits for their own short-term goals.”

In the letter, Mr Wang also thanked unitholders for supporting the fund management and keeping the fund going.