Investment structures
We offer a range of investment structures, each with a different focus for assets, income and growth. Talk to us to discuss which might best suit your needs.
Property Syndicates
These investments have a strong focus on capital growth through active management with ongoing yield
Property Funds
Property Fund investments focus on strong income with potential for capital growth
Property Development
The primary focus of these investments is to deliver capital growth through redevelopment opportunities
Property-backed Loans
Loan investments target compelling short to medium term returns secured by registered first mortgages over real property
Bespoke Mandates
Through bespoke investments we partner with institutions and private companies to create and manage joint venture, mandated or private syndicates/funds
Centennial Industrial & Logistics
Specialist knowledge allows us to develop investments targeting attractive running yield with potential for capital upside from repositioning, development or rezoning opportunities. Click here to visit the CIL website.
Case studies
Opportunity:
- Potential to turnaround a well located asset with limited appeal at purchase, through active management and lease reposition
- With a short WALE over 20 tenants and a 14% vacancy the asset was hard to fund and required intensive management, limiting its appeal to many buyer groups and hampering pricing
- Multi-tenanted provided diversity of income, whilst management intensive mitigated income risk
Where we added value:
- 17 lease transactions out of a total of 26 tenancies reset within 2 years of purchase, eliminated building vacancy at purchase and WALE enhanced from 2.0 to 3.3 years
- Sold at significantly enhanced yield, delivering a 42.8% IRR to investors (relative to target IRR of 11%)
Opportunity:
- Land value accounted for ~80% of the purchase price, effectively acquiring the improvements well below replacement costs
- Large land holding in a defensive location
- Multi-tenancy providing diversity of income
Where we added value:
- Effective & efficient lease reset of 50% NLA, through a series of complex lease surrender, new lease and renewals, eliminating the 8% vacancy at purchase and significantly extending the WALE from 3.5 to 5.3 years
- Corrected the flaws in leasing which triggered the exit from the previous
institutional vendor and brought back the institutional appeal - Sold to AMP, returning 1.5x money multiple
- Delivered 23.3% IRR to investors (relative to target IRR of 12%)
Opportunity:
- Poorly presented centre with vacancy in specialty, a loss making car park and high outgoings, which would benefit from active management
- A strongly performing Coles with turnover of $40m+ anchored 66% of cash flow and forms a good foundation to reposition the specialty tenancies
- The Stratum nature adds complexity to manage and reposition while working in tandem with other stakeholders, which deterred many buyers
- Flexible exit options – strata sell down to unlock the high value embedded in the Coles tenancy or selling in one line
Where we added value:
- Intensive management which turned around the car park, rationalised outgoings and repositioned leases on ~40% of NLA
- Sold on market to a passive private investor and realised a 28.1% IRR (relative to a target IRR of 13%)
Opportunity:
- Vendor whose trust has come to the end of its tenure meaning certainty of a sales outcome
- 17% vacancy at point of sale in a building with good leasing potential
- Unique asset proposition with proximity to the Sydney harbour affording open water views provide a point of difference to tenants and enhances leasability
- Lease hold and heritage attributes deterred buyers
- Multi-tenanted providing quality and diversity of cash flow
Where we added value:
- Aggressive leasing implemented eliminating the 17% vacancy prior to purchase settlement
- Over 95% leased throughout entire ownership since December 2012
- Achieved rental increase of 56% over 5 years
- Significant value increase enabled CPG to return 100% capital to investors while still owning the asset
Opportunity:
- Partnering with an experienced operator with proven success, in a high growth sector, where property is an integral part of the business model
- Ongoing investment and development opportunities in partnership with the operator, for CPG syndicates as well as bespoke mandates
Where we added value:
- Identification and execution of a joint venture partnership with the operator
- Executed on two separate offers to invest $20m in the operating business (operating company) and another $20m in childcare properties (property trust) through two CPG managed funds
- Creating synergetic relationship where the operating company’s capital light expansion model is assisted by the property trust, which in turn gains priority access to a pipeline of attractive properties secured at superior transaction terms
- Facilitating ongoing investment opportunities in childcare properties
