Commercial property investments typically involve ongoing fees and transaction‑related costs. These fees are outlined in the fund’s Product Disclosure Statement (PDS) and can affect investment returns.

Management fees

Most commercial property funds charge management fees to oversee the fund and actively manage the portfolio of assets.

These fees usually cover:

• Investment management
• Property and asset management
• Fund administration and compliance

Management fees are generally calculated as a percentage of the fund’s net assets.

Operating and recoverable expenses

Funds may also recover costs associated with operating the properties and the fund, such as:

• Property operating expenses
• Administration and regulatory costs
• Other recoverable fund expenses

These costs are typically paid from the fund’s assets.

Transaction costs and buy/sell spreads

When investors invest in or withdraw from a fund, transaction costs may apply.

These can include legal costs, stamp duty, brokerage and other costs incurred when buying or selling property assets.

To allocate these costs fairly, funds may apply:

• A buy spread when investing
• A sell spread when withdrawing

Buy and sell spreads adjust the unit price and are retained within the fund, not paid to the manager.

Borrowing (gearing) costs

If a commercial property fund uses debt, additional costs may apply, including:

• Interest expenses
• Loan establishment and financing costs

These costs are paid from the fund’s assets and reflected in returns.

Because fees and costs vary between funds, investors should always review the relevant PDS to understand what fees apply, how they are calculated, and how they may impact returns.