This article is from the Australian Property Journal archive
AMP Capital’s Global Direct Property Fund (GDPF) has sold a multifamily development land parcel in Tampa, Florida for US$11.5 million after acquiring the site for US$2.5 million in February 2013.
The sale delivers a 58.1% per annum total return over the holding period.
AMP Capital fund manager Tim Fallet said investors had benefited from a disciplined delivery of the strategy.
“This has been an outstanding result for our investors and follows the sale of the Boston office building in September 2015. I am pleased we were able to deliver upon our strategy to both unlock value in the office building and improve the development opportunity for the land parcel without taking undue risk.
“This transaction once again demonstrates the fund’s entrepreneurial and disciplined approach with a focus on acquiring real estate at a compelling entry price, aggressive business plan execution and strategic marketing to buyers. Over the last five years the fund’s US portfolio has delivered a return of 19.8% per annum,” Fallet said.
Located at the southern end of the Tampa CBD on prestigious Harbour Island, the multifamily development land parcel is zoned for 340 high-rise residential units.
GDPF purchased both the land parcel and the adjacent class A office building from two different vendors. To this end, AMP Capital subsequently sold the multifamily development land parcel to a US residential developer together with rights to use up to 560 excess parking spaces from the adjacent office building, to be connected via a sky-bridge to be built by the residential developer.
The fund has retained the class A office building adjacent to the land parcel, which has benefited from an aggressive leasing program coupled with a strong cyclical recovery in the Tampa office market.
The fund will commence a capital raising initiative over the coming months to fund new opportunities.
“We continue to see a strong pipeline of attractive core-plus investment opportunities in select submarkets and sectors across the US where we will look to deploy this capital,” Fallet concluded.
Australian Property Journal
