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An MP Funds Management financing case study: Investment into Propertylink headstock pre IPO

Value Hunting / Markets

Australia

Jul 16 2019

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In 2014 we co-invested in the headstock of real estate investment management business, Propertylink. Investing in and managing major industrial warehouse portfolios, office tower portfolios, and infrastructure projects, other Propertylink co-investors included Goldman Sachs and London’s Duke of Westminster. 

Propertylink was set up with a key focus on industrial logistics property and listed on the ASX with the aim to be an attractive Australian platform combining a large industrial portfolio with a successful investment business with $1.9b funds under management. 

The Australian IPO yielded our MP Funds Management investment partners a gross annual internal rate of return of 24%.

In Sept 2018, private equity-backed logistics platform ESR acquired Propertylink in a $723.4 million deal ($1.20 per share) after both sides announced they had struck a binding agreement on the buy-out.

The deal followed nearly a month of due diligence by the powerful Asia-based platform, which had only recently established a presence in the Australian market, and seeking a local industrial platform in Australia, acquired the CIP platform from Charter Hall in July in a $102.5 million deal. 

At about the same time ESR had also recently taken minority stakes in both the listed Centuria Capital Group, 14.9% and the Propertylink platform, 19.9%. 

ESR is a pure play, pan-Asia logistics real estate platform, one of the largest in the region, with assets under management of more than $US12 billion.

ESR is backed by Dutch pension fund managers APG and PGGM, Canada's CPPIB, Goldman Sachs, Chinese insurance giant Ping An, and South Korean conglomerate SK Holdings. 

Mandi Prager is the principal of MP Funds Management. MP Funds Management has provided investment funding for over $1.1bn of real estate-based investments across 22 transactions and produced an average annualised investment return of 21-22% (IRR).

 MP Funds Management is working on a range of high-quality deals for co-investment and institutional debt arrangement in the hotel sector, retail shopping centre sector, commercial office sector, development sector and acquisition of bulk residual brand new residential apartment product (at a discount). Our key focus is the eastern seaboard of Australia. 

 MP Funds Management fee structure is largely performance-based and aligned with investors receiving their principal investment and base return in the first instance, with our fees being largely performance-driven.

 

·     Want to invest with us? Register for Golden Goose Capital HERE

·     Subscribe to the MP Report HERE

·     Find out more about co-investing with MP Funds Management Here.

·     Visit MP Funds Management HERE.

 

 

Disclaimer

The information on this website is for general information purposes only. It is not intended as legal, financial or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature you should seek advice from a qualified and registered legal practitioner or financial or investment adviser. No material contained within this website should be construed or relied upon as providing recommendations in relation to any legal or financial product. MP Report Australia, MP Funds Management, MP Group International, Golden Goose Capital (together MP Group or the Information Providers) do not purport to contain all the information that may be required to evaluate any potential transaction or investment. The Reader and its advisors should conduct their own independent review, investigations and analysis of any Opportunity mentioned and of the information contained, or referred to, in this document including the merits and risks involved. Information Providers have not had regard to the investment objectives, financial situation and particular needs of the Reader. The Reader should make its own investigation and assessment of the Investment, verify to its own satisfaction the accuracy, reliability and completeness of the information in this Information memorandum and obtain independent and specific advice from appropriate experts. The estimates and projections contained on this website involve significant elements of subjective judgment and analysis, which may or may not be correct. There are usually differences between forecast and actual results because events and actual circumstances frequently do not occur as forecast and these differences may be material. The Reader and its respective advisors should make their own independent review of the material assumptions, calculations and accounting policies upon which the accompanying estimates and projections are based. To the fullest extent permitted by law, the Information Providers disclaim and exclude all liability for any loss or damage suffered or incurred by any person as a result of: 1. Their reliance on the information contained in this information; 2. Any errors in or omissions from this information.

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