Forza Grote Street Fund

207 - 215 Grote Street, Adelaide, SA

KEY PROPERTY INFORMATION
Land Size2,787m²
Building Size3,685m²
Occupancy100%
Purchase DateOctober 2019
Purchase Price$9,100,000
Sale DateJuly 2023
Sale price$11,900,000

The Forza Grote Street Fund was established as a club style transaction between Forza Capital and a small number of investors given the size of the Fund.

The Fund acquired a high-profile corner site of 2,787m² with a three-level stand-alone showroom building of 3,685m² of Gross Lettable Area (GLA) and 9 car parks for $9,100,000. The Property was purchased fully leased with a 7.1 year lease to national furniture retailer Early Settler on an initial yield of 6%.

The Property was fully leased to national furniture retailer Early Settler and benefited from significant future development potential

Purchased for its underlying land value combined with long term holding income, the Property is within the Capital City Zone and had a height control of 53 metres (13 – 16 levels). The site is well located in a prominent location in the CBD, close to the Hospitals precinct and the airport. The adjoining ex-Australia Post site, the subject of a major development application, helped underpin the value of our Property by demonstrating potential future upside value in the underlying land.

Despite turbulent market conditions, the Property was successfully sold on market achieving a strong risk adjusted return for investors with the Fund generating an IRR (net of fees) of 15% and an equity multiple of 1.63x.


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