ADPIA positive on property funds

Now is the time to re-enter the direct property market, although access to funding for lenders continues to be a major hurdle, according to the Australian Direct Property Investment Association (ADPIA).

ADPIA president Robert Olde told the association’s national conference that major lenders do not yet share the optimism of investment professionals regarding the outlook for property.

In a recent survey, more than 60 per cent of members stated that securing funding would be the biggest issue over the next 12 months, an identical result to a survey conducted last year, he said.

“The survey found that 58.3 per cent of property fund managers had not undertaken mergers and acquisitions activity in the past 12 months, after a recorded 75 per cent stated they were considering doing so back in March of last year,” he said.

“We believe that this is reflective of the strong governance and resilience of our manager in this sector.”

 Around 70 per cent of members said the abolition or equalisation of stamp duty was very important to the industry, the survey found.

A pending review of net tangible asset requirements that would give more strict capital adequacy requirements to fund managers was also rated as important or very important by over half of members.

Because ADPIA represents not just direct property managers but also the interests of anyone whose livelihood depends on a healthy property funds management industry, Olde proposed the association change its name to the Property Funds Association of Australia, with the change to be decided at a vote this week.