This article is from the Australian Property Journal archive
MELBOURNE-based Quintessential Equity is looking to raise $150 million for its Master Fund No.2, targeting well located and good quality commercial property opportunities that can ride out market cycles.
Director Harry Rosenberg said the launch will present investors with an opportunity to access a fund that seeks to provide a net internal rate of return of no less than 8% on each property it acquires, based on conservative assumptions.
He added that the group will continue to adhere to its strict property acquisition criteria as they look for opportunities with No.2 fund.
Quintessential raised $113 million in April last year for the inaugural Master Fund and subsequently acquired office assets at 431 King William St Adelaide and 8 St Georges Terrace, Perth.
“We will continue to look for opportunities similar to those we’ve found in the last year in Perth and Adelaide, where we think they’ve got to the bottom of a cycle that looks set to turn for them,” he added.
Executive Chairman Shane Quinn said with interest rates and bond yields historically low and equity markets around the world showing more risk than reward, the No.2 fund will place Quintessential Equity as capital ready and give it a competitive advantage with buying opportunities.
“We foresaw the issues of the banks would lead to tightening lending to sections of the commercial property market, and the fund structure means we are capital ready to take advantage of opportunities when they arise.
“We’re starting to see more assets come on the market as existing owners recognise the need for substantial investment to upgrade their properties, but struggle to obtain finance in a difficult economic environment,”
Quinn said if investors stick to fundamentals, property still offers a safe haven where no matter what happens in the market, investors will feel comfortable that they own well-located, good quality property that can ride out market cycles.
