After purchasing this Centre Road property in Bentleigh on June 2014 for $5.55M, Australian Securities in their role as Fund Manager secured the maximum in leasing returns by building working relationships with existing tenants and investing in cosmetic and structural development at the site. This ensured tenants were well catered for and the site benefited from practical capital improvements which are reflected in the final sale price.
The original investment term (7 years) was reviewed by the Fund Manager who predicted the current market conditions as prime for the sale of this site and that the existing negotiated leasing agreements would contribute to a more positive sales result.
Scheme Members were advised of the Fund Managers recommendation for an earlier realisation sale (4 years 8 months) and approval for early disposal of the Bentleigh property was agreed by all Scheme Members. After an extensive advertising campaign the Bentleigh property was sold on the 6 December, with settlement on 4 March 2019. The sale price exceeded the agents expected Sale Price range of $8,950,000 – $9,225,000. Interest in the property was high due to its main street location, its size and architectural quality, potential for development and proximity to an outer city growth corridor. Scheme Members can expect a 69%* effective return on top of their original contribution from the sale which equates to an overall year on year return of 16.66%* including leasing income over the Term of the investment.
The Fund Manager will consider longer or shorter investment periods outside the original terms of a Property Scheme if there is a likelihood the change in sale period could contribute to a Property Schemes success.
Changes to Terms in a Property Scheme can only proceed with the individual Scheme Members authorisation.
*The projected return is subject to settlement of sale, forecast distribution and final financial audit.