Investment Summary
| Investment type: | Equity |
| Sector: | Industrial |
| Location: | Queensland |
| Current value: | $13.5m |
| Investor IRR: | +15% pa realised (pre tax, post fees) |
The Ray White Invest Aus Post SEQ Trust was established to acquire up to eight Australia Post Distribution Centres situated within South East Queensland. The Trust contracted to acquire the Portfolio under a sale and leaseback to Australian Postal Corporation with lease terms ranging from several months to three years (with option periods). The Properties were acquired by the Trust at a bulk portfolio purchase price.
The investment strategy of the Trust was to:
- Acquire all or some of the Properties for the portfolio purchase price of $13,500,000;
- Actively manage the Properties;
- Market the Properties for sale on an individual basis, with the timing of sales to be managed by the Trustee to maximise investor’s IRR; and
- Undertake further detailed investigations of the future re-development potential of the individual Properties.
RWI explored the possibility of selling the Properties via marketing campaigns prior to 5th September 2008, the date the Trust was due to settle the purchase of the properties from Australia Post. With the market changing quickly, we saw an opportunity to sell the properties individually to capture a quick profit. Ultimately, all of the 8 properties were sold prior to the date the Trust was due to buy the Properties, and investors received a share of profit without being required to contribute any of the capital.
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