Topping out Ceremony
9th March 2021Market Review
- 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
Funding the agriculture sector is good business
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.…