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Topping out Ceremony

  • Last week we highlighted that fund managers around the world were at record low cash holdings and were fully invested. As such, the current wobbles in markets are not surprising.
  • Our strategy is based on searching for opportunities in sectors where capital is scarce due to private access or prevailing fear.
  • As such a little fear or market sell off is never a bad thing for a credit fund looking to deploy capital.
  • There is no better example than this than our allocation to office buildings at the height of COVID
  • Last July we stepped in and funded the partially built office building at 510 Church St, Cremorne. The project had no pre-lease and as such other funders were unwilling to finance construction.
  • At the time we felt the project would become the pre-eminent building in the precinct, and that a quality A grade product would attract tenants regardless of the environment. Even if that resulted in higher vacancy in other nearby buildings.
  • Yesterday we had the “topping out” ceremony for the building and our assessment was confirmed with spectacular views and one of only a handful of buildings with large floor plates that can meet corporate needs
  • As result, the building is now near 50% preleased with and looks to be a “no-brainer” investment with 20/20 hindsight.

 

Like our entry into financing the Perth apartment market 4yrs ago, and office a year ago, we continue to look to invest in areas where there is a lack of capital on offer to borrowers.
This week we settled a new $18.5m loan with Happy Valley nutrition, a listed New Zealand based agriculture business.

Our investment will enable the acquisition of strategic farmland and the completion of further earthworks (Read More) , an important part of the agricultural supply chain

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