Adelaide targeted by $150 million Melbourne investment fund

    17 September 2019

    Richard Evans

    A national investment fund has identified Adelaide as a key capital raising destination for a new $150 million project.

    The Quintessential Equity launch will give investors an opportunity to access its Master Fund No. 2 fund which seeks to provide a minimum, net internal rate of return of eight per cent on each property it acquires.

    The Melbourne based, diversified commercial property group’s executive chairman Shane Quinn, says Adelaide is a particularly attractive investment destination.

    “Adelaide has benefited from significant overseas and interstate investment in the last year, a sign of confidence in South Australia’s economy that has been growing consistently for the last decade,” said Mr Quinn.

    “The SA government is committed to implementing business-friendly initiatives such as the removal of commercial stamp duty and the “Ten Gigabit Adelaide” plan, while supporting a range of major defence, renewable energy and mining projects in the state.

    Quintessential Equity acquired 431 King William Street for $43.1 million from Adelaide property developer Con Makris late last year. and Mr Quinn believes the city offers attractive yield for investors looking for assets away from the eastern seaboard.

    “It’s become a thriving hub for innovation and technology, and we will look to be innovative with how we deploy our capital to improve our recently acquired asset at 431 King William Street,” he said.

    “We will certainly continue to look to Adelaide for future buying opportunities, particularly with its falling vacancy rates, attractive yields and rental growth.”

    Quintessential Equity director, Harry Rosenberg, said the group will continue to adhere to its strict property acquisition criteria with Master Fund No.2.

    “We have established a trust with our investors over the last nine years based on consistent performance, which has come about by sticking to our principles, being patient and only acquiring properties that meet our strict purchase criteria,” he said.

    Quintessential Equity has delivered a weighted average net internal rate of return of 23.4 per cent (at June 2018) since commencing in July 2010.

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