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Strong historical performer Stirling Property Funds targets 12%+ IRR for investors

  • Published November 21, 2019 12:00AM UTC
  • Publisher Wholesale Investor
  • Categories Company Updates

Stirling Property Funds is a boutique funds management company focused on achieving outstanding capital growth for its high net worth investors.

Drawing on our extensive property market knowledge and experience, we deliver great outcomes for investors by identifying value opportunities with significant scale, high growth potential and favourable market fundamentals.

Stirling Property Funds Investment Highlights

Opportunity

Stirling, with its unique blend of commercial and industrial experience, aims to provide its investors superior, growth orientated returns through the acquisition and active repositioning of strategically located properties in Australian major capital cities.

The objective is to unlock value in strategic locations through repositioning properties whilst minimising risk.

Team

The company’s board of directors comprises a team of highly involved business executives with background experience, at senior levels, in the property, finance and town planning professions.

Together they draw on the funds management skills and success of former Centuria Property Funds, Bankminster Property Group and M & G Real Estate senior executives in combination with the ongoing outstanding property development achievements of the Legacy Property team.

Performance

The four principals have acquired and completed more than 60 property transactions with an aggregate value in excess of $8B with returns between 13.9% – 26.2%

  • Completed $5 billion of commercial real estate investments over the past 10 years
  • Led rezoning and residential development projects valued at $3 billion, comprising
    3,600 dwellings across Greater Sydney

Competitive Advantage

Stirling’s unique competitive advantage is its extensive experience in commercial and industrial property coupled with successful residential development. Stirling seeks to deliver stable income- producing investments whilst also enhancing future development opportunities via the unique skills of its active and committed directors and management team.

Alignment

Alignment of interest with senior management investing personal capital alongside investors. Privately owned with key executives integral to deal flow, due diligence and exit.

Maximise Returns

Acquiring underutilised commercial assets in urban precincts undergoing renewal.

Australian capital cities focus enables investors to profit from Stirling’s deep understanding of  local markets and town planning policies

Recent Investment

203 NORTHUMBERLAND STREET FUND – Oversubscribed

Investment rationale

  • Through active asset management, improve the quality of the building’s services to lease up existing
    vacancies and capitalise on a 60% rental differential between the subject building and Grade A office
    buildings
  • Subdivide and sell the adjoining development site and position for sale in four years

Strong Fundamentals With Downside Protection

  • Buying below replacement cost in an office market with sub 3% vacancy
  • Quality 8 level office building with recent 10 and 5 year leases to CBA and Westpac and a Weighted Average Lease Expiry of 3.6 years with 3.1% p.a. fixed average rental increases

Compelling Investment Metrics

  • Target Return: 12.1% IRR
  • Equivalent Yield: 6.8%
  • Opportunity for Upside: 15 – 17% IRR

 

About Stirling Property Funds

Stirling is a boutique funds management company focused on achieving outstanding capital growth for its high net worth investors. Stirling’s investment strategy focuses on commercial properties within key strategic markets, with strong occupier demand and low levels of vacancy which are well positioned to benefit from active asset management and Government infrastructure investment.

Total return strategy with target IRR of 12%+ p.a.
Income return of 3-6% p.a.

Principal driver of capital appreciation is active asset management, not reliant on yield compression or high leverage.

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