Directors of a Sunshine Coast funds management company are delighted at the response to their offer to invest in a multi-storey car park situated in the heart of Birtinya’s booming medical precinct.
RM Capital, the investment management arm of Rafter Myers, invited investors to become part-owners of Oceanside Car Park, an eight-level car park and retail asset opposite the Sunshine Coast University Hospital.
RM Capital sought to raise $11.2 million, and were thrilled when 21 investors pledged the amount faster than anticipated.
The asset, which comprises 581 parking spaces and five ground floor retail tenancies, had been purchased for $20,962,500, a sum which is only 31 percent of its estimated replacement value.
“As active managers, with significant project delivery and construction experience we are very good at identifying and executing improvements that will drive returns for our investors,” said Remi Rafter, a director of RM Capital, which currently manages 26 projects throughout Queensland.
So enthusiastic was the take up that RM Capital had to scale back the offer, but Mr Rafter said all 21 investors would share in the ownership of the car park, which had been purchased off-market through direct negotiations with the vendor.
“We have targeted this asset for some time,” said Mr Rafter, who operates RM Capital in partnership with his one-time Australian Army colleague Josh Myers.
“The car park is located directly across the road from the Sunshine Coast University Hospital, one of Queensland’s leading hospitals, in one of the fastest growing regions of Australia,” he said.
The car park is currently operated under a management agreement with Secure Parking, while there is 768sqm of retail space on the ground floor.
The catchment area for the car park is only 43% developed, with four nearby vacant commercial sites that will considerably increase car park demand in the future when developed.
There are restrictions on the amount of parking that can be provided at those sites, with no town planning options for additional commercial car parks.
Mr Rafter was confident investors would be well rewarded for their support of the offer.
“We consider this investment will deliver superior risk adjusted returns over the medium term through our active management strategy,” he said.