Second Ovest Industrial Fund launch bolstered by strong momentum of Fund No.1

Sydney, 4 November 2021:  Realside Financial Group (Realside) has today announced the launch of Ovest Industrial Fund No. 2 (Ovest 2). Ovest 2 is the second industrial property fund offering from property developer, asset manager and investment manager Ovest Industrial (Ovest), which was born out of a collaboration between the Mark Vonic-led property arm of Realside and the Julie Drago-led Perth-based executive team of Western Australian property developer and owner, Hero Properties.

Ovest 2 will capitalise on the strong outlook for industrial property by delivering an innovative build-to-own model, providing sophisticated investors with long-term cash flow and the ability to participate in development upside. The Fund will acquire vacant land which is zoned for industrial development and older style industrial buildings which can be refurbished and repositioned, across major capital cities. Acquisitions will be backed up by tenant pre-commitments over the sites, which will be developed by Ovest. The Fund will target an IRR of 14% and an average yield of 8.5% pa over five years.

The launch follows the May 2021 launch of the Ovest Industrial Fund No. 1 (Ovest 1). Strongly supported, Ovest 1 has fully deployed the ~$60m equity raised across 6 industrial properties in WA, is closed to new subscriptions and has achieved a number of significant development milestones. Since launching mid year, Ovest 1 has secured leases for c. 50,000sqm of existing and development assets. Once fully developed, Ovest 1 will provide c. 90,000 square metres of high quality industrial facilities to the Perth market and is forecast to provide a high yield cash return to investors. The end value of OIF1 is forecast to exceed $150m on completion.

Mark Vonic, Partner – Realside and Director – Ovest, (previously Primewest) said, “The timing of Ovest 1 and now Ovest 2 capitalises on the continued strong tenant demand for high quality industrial property in major capital cities which, coupled with ongoing forecast supply constraints, is expected to fuel further rental growth.

Mr. Vonic continued, “we believe that the potential development upside from a build-to-own strategy offers significant appeal over acquiring industrial-grade properties given the current climate of compressed cap rates. The Ovest executive team’s combined 80 years’ experience and proven track record across industrial development, asset management, investment management, as well as being a vertically integrated model, positions us well to execute on this strategy.

Julie Drago, CEO – Ovest Industrial, said “We continue to see many attractive opportunities in the market and are pleased to be able to offer investors an opportunity to participate in our vision of developing high-quality industrial properties to own for the long term. Our experienced development team, with established roots in the manufacturing and industrial sectors, coupled with our significant asset and investment management experience, ensures that we are optimally positioned to identify and acquire attractive properties with clear development potential, execute on these, and build long-lasting relationships with tenants based on service delivery and an acute understanding of their specific requirements.”

For further coverage on this announcement, see below:
– Business News, 9 November 2021 – Realside launches property fund
– Australian Property Journal, 10 November 2021

Disclaimer
Realside Asset Management Pty Ltd (ACN 634 575 714 AFSL 517629) (Realside) is the trustee of the Ovest Industrial Fund No. 2 (Fund) and has appointed Ovest Industrial Pty Ltd (ACN 649 460 748) (Ovest) as the manager of the Fund. While neither Realside nor Ovest has any reason to believe the information in this document is inaccurate, the truth or accuracy of the information cannot be warranted or guaranteed. Before making any decision regarding the Fund, investors should consider the Information Memorandum (IM) which contains important information about investing in the Fund. It is important investors obtain and read the IM before making a decision about whether to acquire units in the Fund. This document contains general information only and is not intended to be financial product advice. It does not take into account any person’s (or class of persons’) investment objectives, financial situation or particular needs, and should not be used as the basis for making investment, financial or other decisions.  Investors should also consult a licensed financial adviser before making an investment decision in relation to the Fund. Neither Realside nor Ovest nor any other person associated with the Fund guarantees or warrants the future performance of the Fund, the return on an investment in the Fund, the repayment of capital or the payment of distributions from the Fund. To the extent permitted by law, no liability is accepted by Realside, Ovest or their respective directors for any loss or damage as a result of any reliance on this information.