Fund manager busy buying assets in a struggling office market

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Brisbane-based Exceed Capital has snared its second office building in nine months and is now circling bigger CBD assets

has bought three office buildings in three years, the latest being a three-storey property in Toowong in inner Brisbane, which it purchased from ASX-listed Centuria for $37 million.In September, Exceed paid Centuria $40 million for an office building in Robina on the Gold Coast, and in April 2021, it bought another Gold Coast office building in Varsity Lakes, from the ASX-listed Garda Diversified Property Trust for $12.6 million.

“Most of our trusts are returning more than 15 per cent . Some upwards of 20 per cent,” Mr Clarke said. For the Exceed directors, it all comes down to understanding the local market and numbers, including the drivers of future demand, surrounding vacancy rates and how value can be added for investors and tenants.

“It will do the leasing on the smaller shops, stuff that other fund managers would not get out of bed for. But we see the value in that because real estate agents won’t do that kind of leasing,” Mr Clarke said.

 

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