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Realside Property Pty Ltd is pleased to present the opportunity to invest in Ovest Industrial Fund No. 1 (Fund). The Fund aims to acquire a portfolio of Western Australian industrial assets totalling c.$100m. The Fund will gain its exposure through the acquisition of both completed buildings and vacant land which is zoned for industrial development. Vacant land development assets will be “developed to own” and generate income on completion and be held by the fund over the term of investment. The fund will secure lease pre-commitments prior to commencing development.
This partnership brings together the development and asset management expertise of Hero and the investment management expertise of Realside, creating a new development and investment management platform named Ovest Industrial Pty Ltd or “Ovest”. Ovest will be an integrated industrial property developer, asset manager and investment manager for the Fund . The Fund will comprise a portfolio of Perth industrial assets totalling c.$100m, once fully deployed.
The Fund will:
Invest in both completed and development stage industrial assets in Perth.
Acquire development stage assets for construction of industrial buildings on vacant land already zoned industrial.
Refurbish completed assets to reposition and re-tenant.
Source tenant pre-commitments which will underpin the developments.
Provide a value increase upon completion of construction on development stage assets and on completion of refurbishment of completed assets.
Realside 170 Pac Hwy Fund
Acquisition Date: September 2020
Acquisition Price: 42m
Target IRR: 10.6%
WALE of 5.2 years
116 Car bays representing a high car bay ratio of 1 bay per 38 sqm
Fully leased yield of 6.43%
Outstanding Views toward the Sydney CBD and Harbour
Large floor plates >1,000 sqm, side core, easily divisible
Development Approved for 1,670 sqm potentially increasing NLA by 38%
Realside Adelaide Office Fund
Acquisition Date: March 2020
Acquisition Price: $100m
Target IRR: 11.5%
4 refurbished A-grade office buildings located in the Adelaide CBD and fringe
Diverse range of quality tenants, including the State Government of South Australia
Staggered expiry profile across multiple tenants and locations, WALE 5.7 years
Joint ownership with a local developer/manager combining active asset management expertise with active development and refurbishment capabilities
Strong SA economy
High distribution return to investors > 8% pa
87 Colin St, West Perth
Acquisition Date: June 2018
Acquisition Price: $8.5m (pre-capex)
100% Equity funded with capital raise to complete the acquisition, refurbishment and leasing costs.
100% vacant West Perth office building.
Substantial refurbishment completed c. $2,600,000
Currently 50% leased and revalued at $15.3m
Competing stock c. 40 years old with limited capital expenditure. 87 Colin Street is now one of only a handful of genuine A grade offerings in the West Perth market
Fully leased valuation c. 17.5m
Diversified Industrial Fund
Acquisition Date: January 2019
Acquisition Price: $13.6m
Target IRR: 10.8%
Passing yield: 7.3%
3 industrial warehouse units on separate Titles within the same complex
At 7.3% passing initial yield the Property represented excellent value in a national context with Adelaide still broadly undervalued by institutional investors.
The Colonnade, Subiaco
Acquisition Date: July 2019
Acquisition Price: $37.85m
Target IRR: 13.5%
Staggered expiry profile
Mispriced due to overzealous marketing
Value add by leasing vacancy
Acquired at a substantial discount to Replacement value c$55m.
Property has >300 car bays which makes the Tenants more “sticky” than would ordinarily be expected.
Subiaco is expected to undergo a substantial re-rating in coming years
The Quadrant, Perth
Acquisition Date: July 2017
Acquisition Price: $175m
Target IRR: 12%
Deal sourced off market and acquired for an investment mandate with Singaporean sovereign wealth fund, GIC.
Acquired with vacancy c.40%. Fully leased within 12 months
Tenant flight to quality was picked up late in the cycle by the broader market. Quadrant was positioned well at Settlement to be the next building to lease up after the Premium buildings in Perth, given its excellent location on Elizabeth Quay and the substantial refurbishment program completed by the previous Owner.