Real Estate | Australia
Australia is to Europe’s investors like it once was to the great seafaring nations: a land that took some time to discover.
Just ten years ago, European investors still considered Australia an exotic destination for their money. Yet the country, with its enormous wealth of mineral resources, has always had a much to offer. The demographic conditions are excellent, with a young and steadily growing population compared to Europe. The economy is dominated by the services sector, accounting for 60 to 65%, and the property market is characterized by high levels of transparency and liquidity. Melbourne is the country’s second most important metropolis after Sydney and is considered one of the world’s most livable cities. Numerous international companies have their headquarters here, creating a correspondingly strong demand for first-rate commercial real estate.
Australia Fund 1 was launched in 2006 for the property known as KPMG House in the heart of Melbourne. The property was sold at a profit in 2016. Australia Fund 2 brought together two attractive pieces of real estate in the docklands area, part of the biggest urban development project on the Australian continent.
Our Australia Fund 3 incorporated three Class A office buildings in the coastal city of Adelaide. Here, too, the fund’s investors were able to take up a lucrative exit offer as early as 2013. We are now planning to launch a fund for private investors combining real estate in the country’s most exciting cities, such as Sydney, Melbourne, Adelaide and Canberra. The fund will invest in completed office buildings with multiple tenants. The target yield will be 5 to 6% per year over a period of 8 to 12 years.
FULLY-SUBSCRIBED FUNDS
Australia Fund 1
Fund asset
Known as KPMG House, this Class A office building encompasses approximately 43,100 m² of rental space and 350 underground parking spaces on Collins Street, a prime location in central Melbourne.
Sale and return on investment
The real estate in this fund was sold in January 2016 at a significantly higher price than the official valuation. The investors achieved an average return of 117% (after Australian taxes). Investors who came on board later and subscribed at the time of the capital increase achieved a total yield as high as 163% (which corresponds to 10% p.a.).
| Investment company |
SachsenFonds Australien I GmbH & Co. KG |
|---|---|
| AUM | AUD $258.6 m |
| Issued capital | AUD $94.9 m |
| capital increase | AUD $23.3 m per 06.30.2010 |
| Year of issue / sale | 2006 / 2015 |
| Total yield | 117 % or 163 % (1.9 % or 10 % p.a.) |
Australia Fund 2
Fund assets
Two Class A office buildings – Port 1010 and the Innovation Building – offering a total rental space of approximately 21,000 m² in the docklands area of central Melbourne, part of the biggest urban development project on the Australian continent.
Leasing situation
The principal tenant is the Australian government, occupying 72% of the space until 2022.
Occupancy rate (Juni 2021): 100 %
| Investment company |
SachsenFonds Australien II GmbH & Co. KG |
|---|---|
| AUM | AUD $82,6 m |
| Issued capital | AUD $30,5 m |
| Year of issue | 2007 |
| ROI to date | 77,5 % |
| Call for additional cover |
Excluded |
Australia Fund 3
Fund assets
Three Class A office buildings in a prime location in the centre of Adelaide with a total rental space of approximately 35,000 m² and a parking garage with spaces for 704 cars.
Exit of private investors
The private investors accepted an offer to exit the investment company at 115% of the limited partner capital at the end of 2013. The total return on investment amounted to 123.75% of the limited partner capital in Australian dollars and produced a pre-tax yield of 5.9% p.a. Currency translation gains increased the euro-denominated yield to 6 to 7% p.a. for the investors.
| Investment company |
SachsenFonds Australien III GmbH & Co. KG |
|---|---|
| AUM | AUD $225,8 m |
| Issued capital | AUD $123 m |
| Year of issue / sale | 2008 / 2013 |
| Total yield | 123,75 % pre-tax profit (5,9 % p.a.) |
