The asset was purchased in mid 2024 at a 45% discount to the price at which it had last traded and at a 68% discount to its replacement cost. A driving factor of this discount was the occupancy rate of only 29% and weighted average lease expiry (WALE) of only 0.23 years. During due diligence a full floor was leased which provided a significant step towards de-risking the asset and extended the WALE to 5.60 years.
The result of our active and nimble asset management approach was 100% occupancy and a WALE of 7.60 years being realised in less than 12 months.
Having realised all possible leasing outcomes there were limited ways to further add value. The decision was made to divest the asset as interest rate concerns were subsiding and local investors were returning to the market.
Acquired well below replacement cost, repositioned to full occupancy, and realised exceptional performance through nimble execution.
