The Forza Russell Street Fund is an unlisted property fund which holds a quality 4,081m2 commercial office building with 50 basement car parks located in the vibrant South Brisbane market. Purchased for $23,650,000 in March 2019, the Property is an existing 3 level office asset in a dynamic location which has a 12 level height control and flexible zoning.
The Property was acquired approximately 66% occupied however the vacant floor is the top floor. Given current strong leasing interest, the Trustee believes this vacancy will be fully leased short term. Acquired on an 6.8% yield, the purchase price equates to $5,795m2 based on NLA which compares very favourably given recent sales of similar assets.
Purchased well below replacement cost, the asset is a high quality A grade commercial office majority leased to the Queensland Government. Sitting opposite Musgrave Park, the Property has amazing sight lines that are unable to be built out and the corner location, quality asset and longer term height potential mean it will be a sought after asset into the future
The Fund is currently providing investors cash distributions of 6.5% per annum and this return is expected to be highly tax advantaged given depreciation benefits.
- Date April 26, 2019
- Tags Operating Investments