Forza Browning Street Fund
10 Browning Street, South Brisbane, QLD
KEY PROPERTY INFORMATION
|Purchase Date||June 2016|
The Forza Browning Street Fund is an unlisted property fund which holds a high quality 11,214m² commercial office building with 380 basement car parks located in the vibrant South Brisbane market. Purchased for $65,500,000, the Property has a 12-level height control and flexible zoning, with one of the highest car parking ratios in the Brisbane market.
The Property offers tenants excellent value for money, and 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.
At the time of acquisition, the broader Brisbane market had substantial vacancy and the Property was approximately 20% vacant. The asset was acquired well below replacement cost and at a substantial discount to its intrinsic value.
Outstanding risk adjusted return for investors given the asset quality and strong cash flows.
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 Property is now 100% occupied with a WALE of over 4.7 years. The Fund is currently providing investors cash distributions of 8.5% per annum which are highly tax advantaged given depreciation benefits.
In September 2018 a 14% return of capital was made to investors. The current valuation is $86,500,000.