Project Blue Ink

Project Blue Ink is seeking equity investment to fund the purchase of a freehold, commercial building in a well- located suburb of Brisbane, Australia.  The property will be 100% leased to a single tenant on an already negotiated, 10-year lease.

The property is expected to be sold after 4-5 years to maximize the exit value for shareholders.

The Opportunity

Project Blue Ink will be managed by a fully-licensed and very experienced Australian fund manager with a 10-year history of positive income and capital returns.  The equity funding will be combined with local bank debt to allow the acquisition of the building.

Investors will benefit from:

  • Forecast distributions over the first 3 years:
  • Year 1 – 7.7%
  • Year 2 – 8.0%
  • Year 3 – 8.3%
  • 10-year lease provides access to a long term and certain income stream
  • 100% of property outgoings are paid by the tenant
  • Annual fixed rental increases of 3% or CPI (whichever is higher) provides predictable and growing returns
  • Quarterly cash distributions paid to investors
  • Initial debt gearing limit of 60% LTV

The Sponsor & Property

  • Project sponsor has established a specially tailored Australian ‘wholesale’ real-estate investment fund open only to professional / HNW investors
  • Project sponsor is the Australian arm of a global, private capital, asset manager with a 25 year history and USD 1.5 billion AUM
  • Property Details:
  • Freehold title
  • Being fully renovated prior to purchase
  • Lettable area of approx. 2,342 sqm
  • Includes on-site parking with 72 spaces
  • Purchase price of AUD 17.65 million
  • To be sold in approx. 4-5 years with all proceeds (including any capital profits) distributed to investors

The Tenant & Location

  • Tenant is a software business with 15 years of history, 300 staff in 4 countries, and annual revenue over USD 35 million
  • Location is 10km from Brisbane CBD (15 min drive)
  • Area is a highly sought after commercial office location popular with many corporate employers
  • Strategically located with easy access to a number of Brisbane’s largest arterial roads, shopping malls and transport hubs
  • 20 min drive time to Brisbane Airport, 50 min drive to the Gold Coast

Investment and Use of Funds

  • Seeking up to US$8.5 million in equity funding
  • Purchase of fully renovated, freehold, commercial building for 100% lease to single tenant for 10 years

Location

Queensland, Australia