Increasing Interest Rates and the Commercial Office Sector: Can Pressure Create Diamonds?
In a climate where infamous investor Warren Buffett's partner, Charlie Monger, overtly warns of overexposure to the commercial property sector, with his warning extending to a liquidity warning to those banks with senior debt exposure to the sector, just what are the factors driving risk and value?
More importantly, if you have investment exposure to the commercial office sector as we do at MP Funds Management, we have exposure to commercial office in our investment portfolio along the Australian Eastern Seaboard with concentration in the CBDs of Sydney and Brisbane, specifically, how will value and risk play out relative to the investment exposure?
And thirdly, when will that juicy deep investment value show itself?
To keep reading, upgrade to the MP Report Premium membership, where we dig into the MP Funds Management Portfolio value, risk drivers, and risk and value moving forward in the cycle in the commercial office sector.
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Also, join us on the MP Report's Property Investment Podcast as we talk with commercial office cap-tras agent Ian Hetherington, who has executed an estimated $35 billion in commercial property sales in his 35-year career, including the recession period of the late '80s.
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Further Enhance Your Visibility to Exclusive Deal Analysis and Investment Opportunities
Apply to become an MP Report Premium Member, onboard as an MP Funds Management Investor, and gain exclusive access to:
High-quality property deal analysis that benchmarks values and data-driven research across the various property sectors, overlaid with the MP Funds Management view and analysis.
Real estate investment opportunities via MP Funds Management.
New property investment deal flow from what we believe to be Australia’s most successful property investors via MP Funds Management. We believe there is an imbalance between the capital available vs the high-quality property investment deal flow, with there being a greater weight to capital and lesser availability of high-quality property investment opportunities. As a result, MP Funds Management both originates its own deal flow and co-invests with its competitors where a high-quality opportunity presents itself.
To begin the application process, complete the submission form on our website and our team will be in touch with more information on how to become an MP Report Premium Member.
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A Division of MP Group International
With over $4 billion in facilitated investments and an average annual return of 22% (net of fees and before tax), MP Funds Management has strong real estate investing experience.
Note: Past performance is not a reliable indicator of future performance.
Gain deep visibility into pricing, risk, and value dynamics with MP Report Premium. Access detailed fund and transaction analysis and more, to help you make informed investment decisions in today's dynamic real estate market. Available to wholesale clients only.
Latest from the Property Investment Podcast
Stay informed and gain valuable industry knowledge by tuning in to The Property Investment Podcast, hosted by Mandi Prager, CEO of MP Group International. Check out the latest episodes:
Ep 23: Ian Hetherington, Director, Ray White Capital Transactions
Ep 22: Terry Andriotakis, Lateral Group
Ep 21: Michael Hynes, joint MD, Stamford Capital
Ep 20 (Pt.2): Matthew Hyder, CEO of Legacy Property
Ep 20 (Pt.1): Matthew Hyder, CEO, and Scott Girard, Head of Property, Stirling Property Funds
Watch, Listen & Subscribe:
Watch on YouTube
Listen on Spotify
Listen on Apple Podcasts
MP Report Premium
Get detailed deal and property market analysis overlaid with the MP Funds Management view via the MP Report Premium.
Note: MP Report Premium membership is only available to wholesale clients.
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This communication is not intended to serve as investment advice or an investment recommendation. The content does not take into account your financial objectives, situation or needs. You should do your own research and, if appropriate, obtain independent advice from a suitably licensed professional before making investment decisions.
* Actual investment performance may differ materially from forecast returns.
** Please note that past performance is not a reliable indicator of future performance.