Brisbane fund manager expands Queensland office portfolio amid strong investor demand
Brisbane-based fund manager Natgen has expanded its Queensland office portfolio, acquiring $14.25 million worth of properties in Cairns and the Gold Coast.
The expansion comes in response to strong demand from sophisticated investors for a property-backed fund targeting initial monthly distributions of 9.02% per annum.
Natgen Managing Director Steven Goakes said: “We were attracted to these assets as they fit with our strategy of regional office assets in prime locations, with desirable economic fundamentals.”
The newly acquired properties include:
- A two-storey CBD office and retail building in Cairns, purchased for $5.25 million
- A three-storey commercial office building in Helensvale on the Gold Coast, acquired for $9 million
Goakes noted that office markets in both Cairns and the Gold Coast are experiencing historically low vacancy rates, boosting growth prospects for the properties.
“Office stock in strong regional locations has shown greater resilience during the post-COVID period,” Goakes said.
He added: “Whilst much has been made of the resetting of capital city CBD office assets worldwide due to a purported long-term mass exodus of workforces to alternative work settings, regional offices do not suffer from the same negatives.”
The fund, Natgen Investment Trust QC24, closed oversubscribed with investors contributing $9.45 million in capital.
Natgen plans to actively manage the trust for an anticipated five to six years, targeting a tax-advantaged distribution of 9.02% in the first year, rising to 9.16% in the second year, paid monthly.
The company manages a portfolio of investment and development assets across Queensland, New South Wales and Western Australia, supported by sophisticated and wholesale investors.