INVESTMENT CHARACTERISTICS

Property: Maddington Central Shopping Centre, Attfield Street, Maddington, WA

Property Size: 131,606sqm (including 27,661sqm shopping centre & 30,509sqm of surplus land)

Purchase Price: $107,000,000 (excluding rent guarantee and vendor capital expenditure adjustment)

Target IRR: 15.5% over 5 years

Forecast Distributions: 8.5% pa averaged over 5 years

Periodic Withdrawal Facility: 5-year anniversary of Initial Investment Term

INVESTMENT THESIS

The Realside Maddington Fund is an unlisted property trust that has acquired 100% of the Maddington Central Shopping Centre, a prominent sub regional shopping centre 17km South East of the Perth CBD. Land rich, the 27,661sqm shopping centre sits on a combined land parcel of 131,606sqm, including 30,509sqm of separately titled surplus land.

Maddington Central Shopping Centre is a high performing centre anchored by Coles, Woolworths and Kmart, who have an average lease expiry of 8 years, and is the largest of only two sub regional shopping centres in a catchment area poised to benefit from state and local government infrastructure and urban renewal projects. The Property offers proactive tenancy remixing and lease management opportunities to further enhance income generation, as well as material upside from potential value add initiatives relating to the vacant land which are not factored into stated return targets. The Property has been acquired on a cyclically high fully leased yield and a ~40% discount to replacement value.

INVESTMENT CHARACTERISTICS

INVESTMENT CHARACTERISTICS

Acquisition Date: September 2020

Acquisition Price: 42m

Target IRR: 10.6%

INVESTMENT THESIS

• 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
• 4.0 NABERS
• Development Approved for 1,670 sqm potentially increasing NLA by 38%

INVESTMENT CHARACTERISTICS

• Property: 45 Pirie Street, Adelaide SA
• Building Size: 19,923 sqm NLA
• Acquisition Date: 31 May 2023
• Purchase Price: $76,500,000
• Target IRR: 17% over 3 years

Investment Thesis:

• Acquired the property at a discounted purchase price, reflecting the current vacancy and allowing for delivery of our 3-year repositioning strategy.
• Comprehensive upgrade program aimed at elevating the building to an A+ Grade standard, positioning 45 Pirie Street well to meet tenant demand for flight to quality.
• Capital works budget of $17m allocated to upgrading End of Trip facilities, Façade extension, Lobby enhancements, upgraded destination control lifts and on floor works.

INVESTMENT CHARACTERISTICS

• Property: 108 St Georges Terrace, Perth, WA 6000
• Building Size: 38,332 sqm NLA
• Purchase Price: $339,750,000
• Rate per sqm: $8,863 sqm
• Target IRR: 11.7% over 5 years
• Forecast Distributions: 7.9%pa averaged over 5 years
• Liquidity: 5 yearly

The Realside 108 St Georges Terrace Fund is an unlisted property trust that has acquired a 33% stake in a landmark, 38,332 sqm A+ office building in the epicentre of the Perth CBD. Lendlease’s Real Estate Partners No.4 Fund (REP 4)  has acquired the balance with Realside performing the asset management function.

The Fund strategy is to:

• Take advantage of short term market mispricing to acquire the Property at a highly attractive price relative to recent comparables.
• Deliver income growth via both execution of a number of capital light internal enhancements designed to further elevate the building and proactive management of the existing and prospective tenant base.
• Capitalise on the strong outlook for the Perth CBD office market.

Investors are forecast to receive average annual cash distributions of 7.9% per annum and an 11.7% IRR over 5 years.

51 levels, Realside 108 St Georges Terrace Fund the Property is an iconic Perth office tower with most floors benefitting from sweeping views over the Swan River and the wider Perth metropolitan area. The striking office tower is complemented by the three-storey, 1897-built, heritage listed Palace hotel, which provides offices, café, restaurants and multiple conference facilities. The Property is of superior quality and future-proofed following a $110m whole of building refurbishment over the last 10 years, with an unrivalled location offering access to key transport and amenity. It has a high quality, diversified tenant base, and remains at the forefront of the flight to quality trend in the Perth office market, with impressive tenant retention metrics and substantial recent leasing momentum.

INVESTMENT CHARACTERISTICS

INVESTMENT CHARACTERISTICS

Acquisition Date: March 2020

Acquisition Price: $100m

Target IRR: 11.5%

NLA: 39,108sqm

INVESTMENT THESIS

• 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

INVESTMENT CHARACTERISTICS

Acquisition Date: June 2018

Acquisition Price: $8.5m (pre-capex)

NLA: 2,414sqm

INVESTMENT THESIS

• 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

INVESTMENT CHARACTERISTICS

Acquisition Date: January 2019

Acquisition Price: $13.6m

Target IRR: 10.8%

NLA: 9,251.8sqm

Passing yield: 7.3%

INVESTMENT THESIS

• 3 industrial warehouse units on separate Titles within the same complex
• Procured off-market
• WALE 4.1 years (by income)
• Diversified tenant mix
• Industrial property sector seeing structural tailwinds
• SA Economy performing strongly
• At 7.3% passing initial yield the Property represented excellent value in a national context with Adelaide still broadly undervalued by institutional investors.

INVESTMENT CHARACTERISTICS

Acquisition Date: July 2019

Acquisition Price: $37.85m

Target IRR: 13.5%

NLA: 8,175sqm

INVESTMENT THESIS

• Multiple Tenants
• Modern improvements
• Staggered expiry profile
• Mispriced due to overzealous marketing
• Motivated vendor
• 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

INVESTMENT CHARACTERISTICS

Acquisition Date: July 2017

Acquisition Price: $175m

Target IRR: 12%

NLA: 23,309sqm

INVESTMENT THESIS

• 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.