A year of many happy returns Salta Funds Management

Fledgling fund manager Salta Funds Management's entry into the property trust market has provided a solid first up return of 11.2% net of fees to its investors for the year ending June 2008.

The distribution for the Salta Office Property Trust was 6.35%, which is in line with the IM forecast. The fund's seed asset, sourced, developed and built for the trust by Salta, increased in value by 5.24% to $22.50 million, on a 30 June 2008 revaluation.

"The Salta Office Property Trust is a core, unlisted property trust that is doing what it is supposed to do, which is to provide reliable, low risk returns," Salta's Sam Tarascio said.

"We are building a base for the long term and we are very pleased with the initial result. It is a good start," Mr Tarascio said.

"We are working to achieving a six green star rating for the seed property and we will look to add to the portfolio with similar high quality assets," he said.

"Salta Funds Management has been created as part of the long term vision for Salta and while this is early days, we are confident of its growth potential".

"Salta Funds plans to soon launch a development fund, which for us is a step forward in our disciplined growth strategy for the funds business that feeds off the parent company's track record and expertise."

The Salta Office Property Trust's seed asset is the head office for Orica subsidiary (Orica Consumer Products) DULUX at 1956 Dandenong Road, Clayton. Located next to Orica's research laboratories, the building's immediate vicinity is undergoing a transformation with Australia's largest Ikea store in conjunction with a new Harvey Norman strengthening the locale as a destination.

Other developments transforming and improving the amenity of the precinct are the redevelopment of the Blackburn Homemaker Centre and the WARECA development together with the recent opening of Eastlink.