Pressure on Commercial Office Values With Brisbane Leasing A Strong Performer
Q3 Portfolio Performance with Toby Lewis, Founder & Managing Director of Marquette Properties
We first had exposure to Toby Lewis and Marquette Property in about 2014 via a property transaction that netted a c. 20% investment return (IRR). MP Funds Management was involved in the funding capital stack of Post Office Square1 at 270 Queen Street Brisbane, a 1,756 sqm retail stratum and multi-level car park, which was acquired for $67 million and sold for $95.5 million in 2016 after a 2-year hold. Our involvement was via another capital partner in the deal and Toby Lewis and his partners at Marquette Property were responsible for finding and originating the deal and managing the value-add to the transaction.
Marquette Property currently has $1.24 billion in real estate assets under management with a particular focus on the commercial office sector. As specialists in the commercial office and high-quality retail sectors, I have Toby on speed dial for both data-driven updates to the market and co-investment opportunities for MP Funds Management. I also have some of my SMSF invested with Marquette in a commercial office tower at 189 Grey Street1, Brisbane which in the June 2023 Quarter had a $5million improvement to the initial purchase price of $104.5million with an occupancy rate of 81%. A distribution of 6.0% was paid as of September 2023 consistent with the information memorandum.
I share with you here one of Toby’s twenty answers to his Q3 portfolio Q and A on investment risk and value in the investment-grade property sector. Sign in to your MP Report Professional Membership for the full Q and A.
Mandi Prager
CEO, MP Funds Management
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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.
Disclaimer: Each of Golden Goose Capital Pty Ltd, (AR No:1301 947), MP Funds Management Pty Ltd currently (AR No:1301 946) and MP Report Australia Pty Ltd (AR No:1301 948) has been appointed as an authorised representative of Durant Wyot Funds Management Pty Ltd (ABN 41 655 164 864, AFSL No: 537318).