Quintessential Equity launches Master Fund No.2 capital raising
4 September 2019
Quintessential Equity has opened capital raising for Master Fund No.2, seeking $150 million to take advantage of purchasing opportunities in commercial property.
The launch will present investors with an opportunity to access a fund that seeks to provide a net internal rate of return of no less than 8% on each property it acquires, based on conservative assumptions.
The Melbourne-based diversified commercial property group raised $113 million in April 2018 in its inaugural Master Fund and subsequently acquired office assets at 431 King William Street, Adelaide and 8 St Georges Terrace, Perth late last year.
Harry Rosenberg, Director at Quintessential Equity, says the group will continue to adhere to its strict property acquisition criteria as they look for opportunities 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.
“We will continue to look for opportunities similar to those we’ve found in the last year in Perth and Adelaide, where we think they’ve got to the bottom of a cycle that looks set to turn for them.”
With interest rates and bond yields historically low and equity markets around the world showing more risk than reward, Quintessential Equity’s Executive Chairman Shane Quinn believes Master Fund No.2 will place Quintessential Equity as capital ready and give it a competitive advantage with buying opportunities.
“We foresaw the issues of the banks would lead to tightening lending to sections of the commercial property market, and the fund structure means we are capital ready to take advantage of opportunities when they arise.
“We’re starting to see more assets come on the market as existing owners recognise the need for substantial investment to upgrade their properties, but struggle to obtain finance in a difficult economic environment.
“If investors stick to fundamentals, property still offers a safe haven where no matter what happens in the market, investors will feel comfortable that they own well-located, good quality property that can ride out market cycles.”
Quintessential Equity has delivered a weighted average net internal rate of return of 23.4% (as at 30 June 2018) since commencing in July 2010.
More information on Master Fund No.2 can be found at: https://quintessential.com.au/investing/the-quintessential-equity-master-fund/