Propertylink maintains a strong track record in the delivery of excellent returns to global institutional investors across the investment management platform.
PEP was established in 2016 to provide investors with a diversified portfolio of industrial and office assets with the opportunity to deliver value through Propertylink’s active asset management approach, focussed on leasing and asset repositioning. The fund was established with the acquisition of a 13 asset portfolio and later expanded through the acquisition of an office building at 50 Ann Street in the Brisbane CBD.
PAIP II was established in 2015 and provides investors with exposure to a portfolio of core-plus and value-add industrial assets, primarily focussed on the east coast of Australia. The fund has strategically acquired property where active asset management and targeted capital expenditure can deliver value.
PACT I was established in 2017 to acquire value-add office investments in Sydney, Melbourne and Brisbane, leveraging Propertylink’s active asset management approach to drive returns through leasing and repositioning strategies. Currently in the acquisition phase, it is intended that PACT I will progressively acquire an initial $500 million in assets under a programmatic venture between Propertylink and Partners Group.
POP III was established in 2016 to provide investors with exposure to office assets in Sydney’s North West with the opportunity for Propertylink’s active asset management to create value through leasing and capital improvement strategies, with a strong focus on asset sustainability initiatives and upgraded NABERs ratings.
Propertylink was engaged by SEDCO Capital to acquire and manage core, long term lease commercial and industrial assets under a Shari’ah-Compliant structure. The fund consists of a cold storage facility located near the Gold Coast in Queensland which is fully occupied by a single tenant.
POP II comprised a single A-grade office asset at 320 Pitt Street, Sydney with Telstra occupying 98% of the building with 3 x 5 year lease extension options. The fund’s strategy was to undertake a major repositioning of the asset upon vacancy to deliver an upgraded office asset or for conversion to residential use.
Propertylink successfully negotiated the termination of Telstra’s lease extension options to ensure full vacancy in 2020 to commence repositioning works. Following unsolicited enquiries from potential purchasers and the ongoing strength of the Sydney office market, Propertylink reviewed the fund strategy with investment partners and formally marketed the asset for sale, with divestment completed in July 2017.
PAIP was a portfolio of 36 industrial assets located in major Australian cities, predominantly focussed on Sydney and Melbourne. The fund strategy was to acquire assets in major Australian markets and drive rent and capital value through active asset management to deliver stable income and diversified earnings across the portfolio.
Propertylink delivered its active asset management strategy through individual asset upgrades, repositioning, major leasing campaigns and strong ongoing property management, generating occupancy of 95%, a 3.6 year WALE and a weighted average cap rate of 7.68% at divestment.
The fund was established with an Australian based alternative investment manager to deliver stable yields while driving capital value through improved leasing metrics. The fund comprised of a single semi-modern distribution centre in the established industrial area of Braeside in Melbourne. Propertylink along with their investment partner acquired the asset on a 7.9% yield with a lease term of 7 years. On acquisition the lease term was successfully extended to 15 years, providing investors with strong income security.
Recognising the strong market for long WALE assets, the asset was divested in July 2017 with the sale price reflecting a core market yield of 6.09% and delivering superior returns for investors.
POP was established to acquire a single core-plus office asset in Miller Street, North Sydney which was fully leased, with the New South Wales Government the major tenant. With existing leases due to expire in June 2019, it was the fund’s strategy to reposition the asset for core institutional ownership through a major capital expenditure program.
The asset was divested in December 2017 to meet the capital requirements of Propertylink’s offshore investment partner. However the asset was retained within the investment platform, as the seed asset for the PACT I fund where Propertylink will continue to execute the asset’s strategy to reposition for core institutional ownership.
PALT was established in 2013 to provide investors with a stable distribution yield under a Shari’ah-Compliant structure. The fund acquired two long lease, state of the art refrigerated warehouses within the prime industrial precincts of Derrimut in Melbourne’s west and Parkinson in the south of Brisbane.
Yield spreads between cold store facilities and traditional logistics facilities were historically wide at the time of acquisition. Propertylink and investor Al Salam Bank took the view that this disconnect would converged as the real estate cycle matured, at which time an assessment for asset sale would be undertaken.
The assets were divested in February 2017 having achieved a stable income yield and the re-rating of industrial yields over the investment term.
Data is at 30 June 2018. Average total returns are across all current and realised funds and exclude those funds currently in the acquisition phase. Total investment funds includes all funds managed from 2012.