Settlement of Harbour Town Purchase
Ashe Morgan Funds Management is pleased confirm the settlement of the purchase of the Harbour Town Portfolio in Docklands Victoria today the 16th of December 2014.
Having established the Trust and raised sufficient funds from Investors and debt finance, the Trustee successfully acquired the Harbour Town Shopping Centre, the Harbour Town Car Park, the Medibank Ice House and approximately 30,000sqm of developable land. The total costs of this purchase and the initial stage of capital works for the property (including leasing incentives and tenancy fit out works) were $180,000,000 and the transaction was completed through the raise of a total of $80,000,000 of equity capital, $80,000,000 of senior debt funding and $20,000,000 of vendor finance.
AsheMorgan secured a cornerstone investment from SC Capital Partners Pte Ltd for half the committed equity ($40m). SC Capital Partners is a Singapore based manager of a series of opportunistic real estate funds focussed on Asia Pacific. SC Capital Partners bring extensive expertise across a broad range of real estate markets and have invested directly in local markets in retail, residential and hospitality assets. SC Capital Partner’s commitment to the project strongly supports the investment proposition.
The Senior Debt Facility represents 65% of the valuation of the Harbour Town Shopping Centre and Car Park Property and has been established in line with the commercial terms as described within the initial IM distributed to investors. The Trustee has sought to minimise the risk of changes in the Base Rate of the Facility Interest Rate by entering into a fixed interest rate arrangement for the debt.
Since the commencement of AsheMorgan’s involvement with the Property a number of positive improvements have been made to the income of the portfolio with recent leasing deals for vacant space within the Harbour Town Shopping Centre being largely in line with budgeted projections. In addition, the appointment of a specialist car park operator – Care Park – represents an exciting opportunity to improve both the parking experience for customers as well as revenue through targeted marketing initiatives and focused management.
This investment is expected to follow the same path as Ashe Morgan’s recent successes with the sale of its Marsden Park Shopping Centre and Dee Why Marketplace assets. Investors in the Marsden Park Unit Trust received net returns of 23% IRR and a cash multiple of 1.65 times with the sale of the Dee Why Marketplace expected to provide investors a 27% net IRR and a cash multiple of 1.7 times.