The Forza Browning Street Fund is an unlisted property fund which holds a near new 11,214m2 commercial office building with 380 basement car parks located in the vibrant South Brisbane market. Purchased for $65,500,000, the Property is an existing 4 level office asset in a dynamic location which has a 12 level height control and flexible zoning. The building has one of the highest car parking ratios in the Brisbane market.
The property was acquired approximately 80% occupied however since settlement a number of large leases have been concluded and the asset is now fully occupied. Acquired on an 8% yield, the purchase price equates to $5,841m2 based on NLA and including 380 car parks. If the price is adjusted for the excess car parking to make analysis comparable with similar assets, the Property has been acquired on a rate of $4,771m2.
Purchased well below replacement cost, the asset is a high quality A grade commercial office offering tenants great value for money. The Property has end of trip facilities (which have been upgraded and expanded by the Fund), high end amenities, great natural light, large balconies, abundant car parking and easy access given it is located only 1km from the Brisbane CBD and 700m from South Brisbane train station. Since taking ownership, the Fund has invested heavily in sustainability initiatives such as better metering, an upgraded building BMS, the installation of a 100kW solar array and many other efficiency upgrades such as LED lighting.
The Fund is currently providing investors cash distributions of 10.5% per annum and in addition, this return is expected to be highly tax advantaged given depreciation benefits.
In June 2019, the asset was revalued to $91,600,000 and in September 2018 a partial return of capital was made to investors which allowed for a partial return of capital to be made to investors.
- Date July 11, 2016
- Tags Operating Investments