In understanding our client’s portfolio and investment objectives, Urbis successfully acquired a high quality industrial investment at a discounted value due to a forthcoming lease expiry that has delivered strong returns for a private investor.
Drawing specifically on our local industrial market knowledge, experience with industrial assets and our investment management expertise, we developed an investment strategy to underwrite the acquisition of a property with a 4 year lease. During our management we subsequently negotiated with several parties to secure a 10 year lease from an occupant with an excellent covenant, whilst maintaining uninterrupted cashflow.
By devising and executing a commercially focussed negotiation strategy we achieved our acquisition objectives, resulting in a long term lease to an A Grade tenant at a substantially higher rental than our underwriting assumptions.
The transaction was completed with nil capital outlay by the investor and the rental income continued without interruption.
An appraisal indicated the property had increased in value by 45% in the 4 years since acquisition.
Drawing on our, investment management and industrial market experience we identified a quality property and strategically accepted leasing risk to deliver value adding outcomes.