The Forza Russell Street Fund was an unlisted property fund which held a quality 3 level 4,081m² commercial office building with 50 basement car parks in South Brisbane. Purchased for $23,650,000 in March 2019, the Property has a 12-level height control and flexible zoning. Sitting on a high profile corner site opposite Musgrave Park with amazing sight lines that are unable to be built out, the Property has longer term redevelopment potential. Acquired on a 6.8% yield, the purchase price compared very favourably to previous sales of similar assets.
The Property was acquired with approximately 33% vacancy, and within the first six months a whole floor Government tenant was secured on a long-term lease for the vacant space. This increased the WALE to over 6 years and 100% occupancy by Government tenants. Subsequent to this, the Property was revalued to $29,500,000 which allowed for a refinance to occur and 21% of capital to be returned to investors in December 2019.
The asset was repositioned through active management which has saw a 21% return of capital for investors during the holding period of the investment together with a very strong total return upon sale.
Through active, hands on management, the Property has also achieved a 6 Star NABERS rating. It is one of the only existing buildings in Queensland to achieve such an outcome and one of only 6 buildings in the Brisbane CBD and surrounds to achieve such a rating.
The Fund was approached off market to divest the asset in late 2021. Post sale, the Fund has returned an 18.6% IRR to investors and a 1.45x equity multiple
