This article is from the Australian Property Journal archive
US private equity firm Proprium Capital Partners has sealed the deal to buy the Investa Land from Morgan Stanley.
Proprium partner and co-founder Tim Morris said the acquisition provides the foundation for the firm’s ambition to launch into Australia, with a goal to explore further growth opportunities.
Investa Land comprises two businesses, industrial and residential land development with a pipeline value in excess of $4.3 billion. The portfolio comprises of more than 10,000 residential lots and over 550ha of industrial land.
On the balance sheet, the 10,000 plus residential lots is impressive, however industry sources said the portfolio is heavily weighted in the Sunshine Coast with the Palmview project in Sippy Downs, where the market has been stagnant in recent times.
Within Investa Land’s portfolio, Palmview accounts for 5,000 lots and a value of $4 billion.
Meanwhile Investa Land’s other top selling projects, such as Georges Fair at Moorebank in Sydney, are nearing completion.
Industry sources said Proprium would need to rapidly diversify the portfolio and replenish stock whilst waiting for the Palmview project to start up or the Sunshine Coast market to boom.
The Palmview project remains in the planning stages.
Investa Land will continue to be run by Cameron Holt.
Holt said the investment by Proprium marks the commencement of an exciting new phase for the business.
“It will provide the opportunity to restock and grow the land portfolio and adopt a longer term investment horizon, as well as explore other related development opportunities.” Holt said.
Australian Property Journal
