I underwrote a $120M office tower in Australia
Someone needed liquidity. You get a $21M discount.
Target 15–16% net IRR
Operator manages $5.9B AUM
16,352 sqm A-grade, 23 levels, 99.2% occupied
To fund deals like this, I ask 4 questions:
What stage of risk are we in?
The building is fully operational
The anchor investor is an institution
Someone with a full due diligence team looked at this deal and said yes. That's the clearest signal of underwriting quality I look for.
What makes the location work?
2-minute walk to Central Station
The city needs 2M sqm of new office space by 2032
The state has committed $185B to infrastructure
Construction costs make new development unviable right now, so existing well-located stock gets scarcer.
How is the downside protected?
Entry well below replacement cost at 55% LVR
Big-name tenants with long leases
The one thing I'd flag honestly: there's a 1.5% acquisition fee ($1.8M) payable at close, on top of the equity raise fee. That comes out of the fund.
Can we control the exit?
5–7-year term gives time to execute the value-add
Institutional co-investor creates a pathway for sale
My verdict:
Strong fit for family offices
Strong fit for wholesale investors
Medium fit for anyone who might need liquidity
If you allocate to real assets, let's connect 👋