The Forza Joseph Street Fund was a joint venture between Forza Capital and a family office which held 10,803m² (1.08 hectares) of land in Blackburn North, Victoria. The Property comprised a two-level office/warehouse with 6,266m² of Net Lettable Area (NLA) and 73 at grade car parks.
Purchased at its underlying land value for $11,000,000, the property was 84% leased, but with the major tenant intending to leave. Since acquisition, a new major tenant was secured and a refurbishment of office space occurred as part of the repositioning and long-term hold strategy.
The fund acquired a strategic land parcel at land value with future rezoning potential
The Property was located in a small pocket of in industrial land surrounded by residential property. In the long-term, Forza Capital believed this location may be rezoned as part of a revised land use strategy.
Ultimately, the industrial property market pricing moved very swiftly post purchase and after an assessment of risk, the Property was divested to an institutional property owner. The Fund generated an IRR (net of fees) of 21.1% and an equity multiple of 1.65x.
