Core Property has reviewed the Bayley Stuart - 31 Queen Street Fund, an unlisted property fund that invests in the commercial office property at 31 Queen Street, Melbourne VIC.
The Fund is managed by Bayley Stuart Investment Management, a Melbourne based property investment manager with over $530M of assets under management.
The Fund provides an opportunity to invest in a Melbourne CBD office property at a point where the office sector has been impacted by lower valuations, supported by a local manager with an extensive track record in the Melbourne office market.
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The Property is a 21 level office tower that is well-located in a prime triple-fronted location in the western core precinct of the Melbourne CBD.
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The Fund’s strategy aims to utilise Bayley Stuart’s local expertise to maintain and enhance the Property’s lease profile, targeting initial distributions of 8.00% p.a. and providing the potential for upside capital growth by investing through the investment cycle.
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The Fund has a term of 4-years.
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The Manager and its shareholders are intending to co-invest in excess of 20% of the equity in the Fund.
The Trustee is seeking to raise up to $102.4M through the issue of up to 102.4M units at $1.00 per unit. The funds will be used, with debt, to acquire the Property and establish the Fund . The Offer is open to Wholesale investors only.
Core Property has rated the Fund as RECOMMENDED.