NEWS

2020 YEAR IN REVIEW – INVESTOR UPDATE

It’s safe to say that 2020 has been an intense and challenging year for everyone. It’s been an even bigger challenge for those in the property sector, in particular property owners who have borne a significant burden in the support of tenants.

Within our own portfolio, while we experienced great uncertainty in the early months of the pandemic, our tenants and assets have shown terrific resilience and resolve, aided significantly by Western Australia’s good fortune in its handling and control of COVID-19. While we are continuing to take added precautions, with a strong focus on having significant liquidity coverage for any future extended shutdowns, we have placed our Trusts in a strong position and we have great optimism for bigger and better things in 2021.

Despite the back-drop of COVID-19, remarkably, the Quadrant Investments’ (QI) business and our Trusts experienced a number of significant achievements and highlights in 2020. We’d like to share a handful with you further below.

Strong Leasing & Tenant Retention

In 2020, QI managed and negotiated over 5,700sqm of new and renewed leases across its portfolio in 2020, representing almost 30% of our total building area under management.

This included welcoming Sydney Tools, a new national tenant to Perth to our building at 1968 Beach Road, Malaga – with a building handover and fit-out that was managed during a hard border closure to the East Coast based team.

All round, a significant achievement in the challenging circumstances and a testament to our relationship management with our tenants.

Sydney Tools

New Joondalup CBD Office Concept

Following on from our acquisition of 4 Reid Promenade, Joondalup, QI has appointed MJA Studios to commence initial concept planning for a new A-grade quality boutique office development of approximately 2,000 sqm in the heart of the Joondalup CBD.

The new development will front McLarty Avenue and Dean Place, a short distance from the northern entry of Lakeside Joondalup Shopping Centre and directly opposite a public car park with over 130 car bays. A leasing marketing program is planned for mid-2021 to secure pre-commitments to the development.

The opportunity to utilise the underdeveloped area available plot ratio would not have been available without QI’s identification of the opportunity when we acquired the property in late 2019. Via renegotiation with the existing tenant entity, we were able to not only secure a new 15-year lease but also a claw-back provision to excise the undeveloped land area from the lease area.

Upcoming Opportunities

QI is actively pursuing properties for its next Trust. We continue to research and monitor the effects and ramifications of COVID-19 through the key property sectors in search of assets at both the opportunistic end and stabilised income end of the spectrum.

Acquiring assets at historic tight yields will likely face future pressure on maintaining investor returns and exit capitalisation rate movements in the event of a rising interest rate environment. It is therefore important to have a strong acquisition strategy in this low interest rate environment. We are placing a strong emphasis on assets that will provide genuine income growth or review opportunities in line with any future market spikes to counteract interest rate rises in the years to come.

We encourage you to call Phil or Alex if you would like to discuss upcoming QI opportunities and your preferred investment commitment.

Season’s Greetings

With the closed international borders and recent difficulty travelling interstate, we hope you are able to spend quality time with family and friends over the holiday period in a year where we were all reminded how important personal physical connections are. It’s certainly been a year like no other.

On behalf of Phil, Alex and the rest of the QI team, we’d like to wish you a safe and merry Christmas holiday period as we all collectively get set for what is sure to be a great 2021!

Richard Noble & Company Invests in Quadrant Investments

In case you missed the news earlier this year, one of Australia’s oldest companies, Richard Noble & Company (RNC), has made a significant investment in the Quadrant Investments business after their acquisition of a 50% stake in late July. The partnership is a perfect fit, given that the ethos of the two companies are closely aligned with an investor/client-first approach. This approach for the pursuit of quality over quantity has seen Richard Noble & Company become a trusted name in Perth’s property sector over its 107-year history.

As part of the acquisition, RNC Managing Director Alex Gregg has joined Phil Fogliani as Director of the Quadrant Investments’ business and its Trustee companies.

Further information about RNC joining the Quadrant family can be found in our press release on our website here.

The QI Team Grows

2020 has seen a significant positioning for growth of our business, following on from Richard Noble & Company’s investment. We made two exciting and strategic appointments to the QI team with David Ellwood joining in an Advisor & Acquisitions role, together with Andy Tyack as Analyst. We also welcomed Greg Halls to the position of Company Secretary of Quadrant Investments.

David brings with him over 30 years’ experience within the property industry, including 13 years in Investment and Fund management, and was most recently the Managing Director of Mair Property Funds. In his role with QI, David will assume a key role in sourcing and reviewing acquisition opportunities for new Quadrant Trusts and mandate appointments for our clients.

Andy has over 12 years’ experience within the property industry across valuation, development management and commercial fit-out project management disciplines. Andy will provide assistance to David, Alex and myself as an Analyst.

With over 10 years’ finance experience and as RNC’s current CFO, Greg brings considerable experience and as Company Secretary will provide oversight on all financial aspects of the Quadrant Investments business, including governance and compliance.

We are delighted to announce that our established multi-property fund has settled on its fourth acquisition, a multi-tenanted industrial building in the core northern Perth industrial locality of Wangara.

The acquisition by the QI Diversified Income Trust No 1 sees the addition of two high quality tenants who are both wholly owned subsidiaries of internationally listed conglomerates in Emerson Electric (NYSE) and Daikin Industries (TYO). 

The diversified fund has now reached 70% of its target size of $40 million. With the previous raisings being highly sought after and with only one further reopening of the fund likely, we encourage you to register your interest to ensure you are first in line for the remaining equity raising.

Investment Highlights

  • Through strategic analysis and selection, the Trust aims to provide investors with stable income return and capital growth over the life of the Trust.
  • QI Diversified Income Trust No. 1 will comprise a multi-property fund with an acquisition target of up to $40,000,000 in combined value of property assets
  • The Trust will focus on the acquisition of high-quality commercial assets in key sectors including retail, health services, industrial and commercial, with a target distribution of 7.0% p.a. over the Initial Term of the Trust.
  • The Trust now holds a portfolio of four assets worth $28,150,000 with a weighted average lease expiry (WALE) of just under 4 years to blue-chip tenants the WA Government, one of Australia’s largest home builders, the ABN Group and respective wholly owned subsidiaries of international companies Emerson Electric (NYSE listed) and Daikin Industries (TYO listed). 
  • The Trust is forecasting a 7.0% p.a. distribution in FY2022 and FY2023 with distributions paid monthly to investors.

About Quadrant Investments
Quadrant Investments is an established fund manager with over $80 million in assets under management. Together with its substantial shareholder and partner, the 108-year-old Richard Noble & Company, our team of experienced professionals have the insight and expertise to deliver long term wealth to our investment partners.

How to Invest 
To invest in this trust, register your interest here to be contacted at the next round of equity raising.