SA firmly in the sights of Vic fund
17 September 2019
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 which seeks to provide a minimum, net internal rate of return of 8 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 St 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 St,” 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 has delivered a weighted average net internal rate of return of 23.4 per cent (at June 2018) since commencing in July 2010.