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With a proven track record of enhanced exit values, Opus Capital Group has prepared this fund specifically for investors whose focus is on capital growth.
Opus Capital Group’s co-chairman and director of corporate strategy, Steven Goakes, explained why the fund was set up and how it operates.
“The OPUS Capital Growth Fund No.1 was released at the end of 2007,” Mr Goakes said.
“It's a new type of fund for us in that it is a total return fund. We’re looking not only for income return but also for capital growth across the assets that we take into the fund.
“That has been the culmination of a fairly long series of discussions we've had at management level within Opus, to take what we've learned in our income-style funds, and put them to practice in growth assets.
“The current property investments that the fund has taken in have all been office investments and new A-grade, green-rated office buildings on the eastern seaboard of Australia.
"All of Opus's investment funds are unlisted property funds. We have stuck to this market principally because we believe it accords very well with the nature of property investment, which is a long-term investment where we look for opportunities as the properties offer the opportunities, rather than looking for short-term financial market variations in what's going to happen to a property.
“The fund features a conservative gearing ratio, diversity of selected properties, in terms of both sector and location, and adherence to sound fundamentals.
“The fact is, good fundamentals in any investment and any property investment do not change over time,” said Mr Goakes.
“We look to make sure we have a proper conservative approach to all aspects of the investment process that we undertake. While it hasn’t featured prominently in people’s investment decisions recently, well risk-managed investment strategy is very important in all types of investment, particularly in this type of investment.
“So we look to ensure that we have appropriate diversification; we have an appropriate debt strategy that doesn’t over-gear the properties; we make sure the markets in which the properties operate are fully understood by us and like any investment knowledge, study and understanding of the market is probably the most important thing as we go forward.
“All of Opus’s investment funds benefit from conservative gearing levels. We only borrow from large, major Australian banks. We never borrow offshore. We never borrow with any currency risks. In that respect we’re not exposed to any of the current turmoils in the debt markets worldwide.”
The properties chosen for this fund include 45 Commercial Rd, Newstead and 25 Montpelier Rd, Bowen Hills, on Brisbane’s premier northern CBD fringe. The former is a five Green Star-rated office building on the edge of the urban renewal precinct of Fortitude Valley.
The completed Montpelier Road building will also be a four Green Star-rated office complex. The fund has also acquired 436 Johnston Street, Abbotsford, in Melbourne, which will be the location of Trenerry on Studley Park, a five level 10,000 square metre office building.
“We’ve got a large and growing team of property professionals with many, many years of experience at choosing these types of assets and it’s that level of expertise that we can now apply to ensuring that we give investors the best possible outcomes and value in the fund,” Mr Goakes said.
“The locations that have been chosen for the assets in G1 relate specifically to the markets in which they operate and also the timing and the parts of the cycle that those markets are in.
“So, for example, in Brisbane there is a supply shortage in the near city area for the next two years so we have decided to take buildings into that market in that time where demand is high, supply is low so we can leverage that to maximise our rents and then take good rental deals forward.
“The concept of greening of the office stock in Australia is something that we’ve put a lot of effort into ensuring that we are at the vanguard of.” Mr Goakes said.
“In fact greening to Opus really just means good business and efficiency in running our buildings, which is something that we are always seeking to do because that’s the way we maximise the wealth of our investors and that’s totally what this is all about.”
Opus Capital Group’s co-chairman and director of corporate strategy, Steven Goakes, explained why the fund was set up and how it operates.
“The OPUS Capital Growth Fund No.1 was released at the end of 2007,” Mr Goakes said.
“It's a new type of fund for us in that it is a total return fund. We’re looking not only for income return but also for capital growth across the assets that we take into the fund.
“That has been the culmination of a fairly long series of discussions we've had at management level within Opus, to take what we've learned in our income-style funds, and put them to practice in growth assets.
“The current property investments that the fund has taken in have all been office investments and new A-grade, green-rated office buildings on the eastern seaboard of Australia.
"All of Opus's investment funds are unlisted property funds. We have stuck to this market principally because we believe it accords very well with the nature of property investment, which is a long-term investment where we look for opportunities as the properties offer the opportunities, rather than looking for short-term financial market variations in what's going to happen to a property.
“The fund features a conservative gearing ratio, diversity of selected properties, in terms of both sector and location, and adherence to sound fundamentals.
“The fact is, good fundamentals in any investment and any property investment do not change over time,” said Mr Goakes.
“We look to make sure we have a proper conservative approach to all aspects of the investment process that we undertake. While it hasn’t featured prominently in people’s investment decisions recently, well risk-managed investment strategy is very important in all types of investment, particularly in this type of investment.
“So we look to ensure that we have appropriate diversification; we have an appropriate debt strategy that doesn’t over-gear the properties; we make sure the markets in which the properties operate are fully understood by us and like any investment knowledge, study and understanding of the market is probably the most important thing as we go forward.
“All of Opus’s investment funds benefit from conservative gearing levels. We only borrow from large, major Australian banks. We never borrow offshore. We never borrow with any currency risks. In that respect we’re not exposed to any of the current turmoils in the debt markets worldwide.”
The properties chosen for this fund include 45 Commercial Rd, Newstead and 25 Montpelier Rd, Bowen Hills, on Brisbane’s premier northern CBD fringe. The former is a five Green Star-rated office building on the edge of the urban renewal precinct of Fortitude Valley.
The completed Montpelier Road building will also be a four Green Star-rated office complex. The fund has also acquired 436 Johnston Street, Abbotsford, in Melbourne, which will be the location of Trenerry on Studley Park, a five level 10,000 square metre office building.
“We’ve got a large and growing team of property professionals with many, many years of experience at choosing these types of assets and it’s that level of expertise that we can now apply to ensuring that we give investors the best possible outcomes and value in the fund,” Mr Goakes said.
“The locations that have been chosen for the assets in G1 relate specifically to the markets in which they operate and also the timing and the parts of the cycle that those markets are in.
“So, for example, in Brisbane there is a supply shortage in the near city area for the next two years so we have decided to take buildings into that market in that time where demand is high, supply is low so we can leverage that to maximise our rents and then take good rental deals forward.
“The concept of greening of the office stock in Australia is something that we’ve put a lot of effort into ensuring that we are at the vanguard of.” Mr Goakes said.
“In fact greening to Opus really just means good business and efficiency in running our buildings, which is something that we are always seeking to do because that’s the way we maximise the wealth of our investors and that’s totally what this is all about.”
