St Hilliers Funds Management Limited has announced it has sold the fifth and final asset held in the St Hilliers Enhanced Property Fund No.1.

St Hilliers General Manager Funds Management, Mr Nicholas Ridgwell, said the unlisted property Fund would deliver a pre-tax return of approximately 20% per annum on investors' funds after fund fees and expenses other than performance fees.

Mr Ridgwell said the Fund substantially exceeded its original target of 15% after performance fees and expenses.

"The return is the result of the careful implementation of value adding strategies and sale to suit market windows.  It also demonstrates St Hilliers ability to deliver superior returns from property activities," he said. 

A select tender process was conducted for the sale of the final asset of Fund No.1, a commercial property at 119 Wells Street, Southbank. The property was sold with the benefit of planning approval for a 250 unit residential development, which was negotiated by St Hilliers. 

St Hilliers Enhanced Property Fund No.1 closed in December 2004. A risk-adjusted closed-end vehicle, the Fund managed five property investments in Sydney, Melbourne and Canberra valued in excess of $65 million. 

The Fund strategy involved investment in tenanted properties to provide an immediate income stream while St Hilliers applied its expertise to maximise the investment value of the property.

St Hilliers recently closed the third in its series of unlisted property investment vehicles raising $50 million of equity from the wholesale investor market. Approximately half

the equity was allocated in the initial fund portfolio, which comprises a commercial office building in Melbourne CBD and two industrial assets in South and South West Sydney. 

Mr Ridgwell said that St Hilliers unlisted property investment vehicles appeal to wholesale investors wanting investment alternatives that improve the returns from their property allocation.

He believes investors in St Hilliers property funds benefit from the group's proven track record of creating a quality deal flow of development and value-add opportunities.