Direct Investment

Direct Investment

About Direct Investment

Backed by the global reach of the Investec Group, the direct investment team specialises in sourcing and managing a range of real estate opportunities on behalf of the Investec Group and third party institutional and wholesale investors. These cover core, opportunistic and value-add opportunities, including development.

How we do it

Our co-investment model means we invest alongside our partners to ensure an alignment of interests. Our on-the-ground infrastructure, which includes senior executives with decades of real estate experience, is located across all of Australia’s major cities.

Direct Investment

What we focus on

sectorally and geographically

We are focused on providing on-the-ground expertise for both local and offshore investors with a robust risk mitigation model that always focuses on active asset management and clear exit strategies.
We are sectorially and geographically agnostic and have an established track record of delivering superior returns across a range of asset classes including:

Accommodation

We have invested in a portfolio of eight hotels across Australia and Europe with a gross value of AUD 320 million in a joint venture with one of Australia’s best-known hotel operators.

Residential development

We have delivered luxury apartment projects with an end value of AUD 180 million.

 

Land subdivision

We have delivered over 3,000 land lots valued at almost AUD 1 billion alongside some of Australia’s best-known developers.

Affordable housing

We have delivered almost 500 affordable housing lots in both Victoria and the ACT alongside some of Australia’s best-known developers.

Self-storage

We have invested in and redeveloped a portfolio of 11 self-storage assets located across Australia.

Asset repositioning

We have invested in, repositioned, managed and existed several single asset opportunities on behalf of both the Investec Group and third party institutional and wholesale investors.

Direct Investment Projects

Non-Performing Storage

Credit

Non-Performing Loan Portfolio

Non-performing loan portfolio acquired at a discount from Suncorp Bank secured by three office buildings and one mixed use development, all in Melbourne fringe suburbs.
 
Holding structure: Investec Group balance sheet    
Total project value: AUD 276 million
IRR: 14%
Total profit: AUD 118 million

10 Wylde Street

Residential development

10 Wylde Street

22 high-end residential units in prime central Sydney location.

Holding structure: Investec Group balance sheet    
Total project value: AUD 58 million
IRR: 19%
Total profit: AUD 11 million

The Quay

Land subdivision

The Quay

Development of 580 lots located 95kms south west of the Melbourne CBD in joint venture with Frasers.
Holding structure: Joint venture
Total project value: AUD 130 million
IRR: 17%
Total profit: AUD 11 million

Aspire

Land subdivision

Aspire

Development of 780 lots located 30kms north west of the Melbourne CBD in joint venture with Villawood.
 
Holding structure: Joint venture
Total project value: AUD 156 million
IRR: 26%
Total profit: AUD 41 million

Opportunities

We are focused on providing on-the-ground expertise for both local and offshore investors with a robust risk mitigation model that always focuses on active asset management and clear exit strategies.

Opportunistic Investment Drivers

  • Underinvested assets
  • Near term lease expiry creating re-letting upside
  • Capital / liquidity pressures
  • Distressed sellers
  • Portfolio / scale benefits
  • JV opportunities

01

Opportunistic Investments Drivers

Active Asset Management

  • Tenant management
  • Re-letting opportunities
  • Lease restructuring
  • Redevelopment upside
  • Subdivision opportunities
  • Bolt-on opportunities

02

Active Asset Management

Asset Repositioning

  • Improved asset quality
  • Strengthened tenant quality / credit profile
  • Medium to long-term WALE
  • De-risking of cash flows
  • Potential portfolio benefits

03

Asset Repositioning

Opportunistic Asset Trading

  • Ensure clearly defined asset realisation strategies
  • Exploit market cycle
  • Investment structure should ensure flexibility on possible exit options
  • Consider portfolio trades

04

Opportunistic Asset Trading