Invest with Forza.
Invest Better.
Forza Capital is pleased to introduce the Forza  Bay  Road Fund, our latest value-added investment offering.
Building on more than 16 years of experience and a track record of a net investor IRR of 19.7 %*, this Fund holds a large industrial site in Melbourne’s tightly held Bayside corridor that has been secured below its vacant‑possession land value. It provides investors with secure income from an ASX listed tenant, multiple value‑creation strategies, and robust downside protection.
Investment Highlights
Deep Value Acquisition
Forza Capital has secured the Property for $53.8 million, which is approximately 27.06% below the property’s vacant‑possession land value. The site is a rarity in that it is worth more vacant than tenanted. The 5.5-hectare land holding includes multiple industrial improvements plus 16,048 m² of General Residential Zoned (GRZ) surplus land, providing significant embedded value and downside protection.
Rental Reversion Upside
The current passing rent of $165/m² is materially below what the site can yield as a Large Format Retail (LFR) centre. Upon expiry of current lease, Forza plans to re-position and re‑lease the existing buildings as an LFR centre, capturing a material uplift in rent and driving investor returns.
Attractive Income & Return Profile
The property is leased to a wholly owned subsidiary of Fletcher Building Ltd (ASX: FBU), on a 3 + 1 year net lease. Trustee modelling for the seven‑year projected period targets a Net IRR of 15.0%, an equity multiple of 2.41 x and an average distribution yield of 5.46% p.a. Once the buildings are repositioned and re‑let after the tenants vacate, distributions are projected to increase to around 8-9% p.a.
Strong Hedge Against Downside
Should the tenant vacate and the site be sold vacant, the property could be worth roughly $73.8 million, which is substantially more than the acquisition price, providing a strong hedge against vacancy risk.
Re-Zoning Upside
In addition to high underlying land value and strong upside in re-leasing, the site also has rezoning potential. While this outcome is not assumed in the Fund’s base case, it highlights the significant optionality embedded in the asset.
If you are interested in obtaining a copy of the IM, please fill out your information in the form below.
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Forza Capital Pty Ltd holds an Australian Financial Services Licence (AFSL) Number 345 929. Under this AFSL, Forza Capital is only licensed to provide financial services to Wholesale Investors.
*Please note that past performance is not an indicator of future performance.