The Forza 365 St Pauls Terrace Fund was an unlisted commercial office fund which held two existing office buildings comprising NLA of 1,753m2 and 17 car parks on a land allotment of 2,052m2. The properties were fully leased and were located in a strategic precinct known as the Fortitude Valley Heart which encourages a range of mixed use and development outcomes.
As a combined land holding of over 2,000m2 the site was able to accommodate up to 25 levels of redevelopment however the assets where purchased at a price reflecting their raw commercial office value.
This Fund was a strategic investment in an emerging location and an improving Brisbane market. The properties were purchased at their underlying land value and returned an attractive yield to investors whilst a value adding process was undertaken.
The sole assets of the Fund were sold with the existing leases in place in February 2016 for $13,000,000 after being purchased for $7,070,000 in October 2013. Investors in the Fund have had $2.08 returned for each $1.00 invested (net of all expenses and fees) resulting in an IRR of 36.5% per annum.