Acure explains potential benefits of active management and strong returns through property investment

Sophisticated investors understand the need for unlisted property in their portfolio when market volatility strikes.

Presented by Acure Asset Management Limited

The second half of the 2020s has started with US President Donald Trump pursuing a range of immediate changes that are moving markets on a weekly basis. China is boosting stimulus and growing geopolitical tension means investors might want to consider a different playbook.

Established in 2012, Acure Asset Management Limited is an Australia-based real estate funds management group constantly looking to identify and originate off-market opportunities that take advantage of market conditions. It aims to deliver strong income yield with capital growth for its investors, key stakeholders and partners.

“We look for value and given the breadth of the commercial property sector, you can find value in a particular sector or in a particular region,” says Acure business development executive Robert Morrison. “We look across Australia — across all sectors.”

High-net-worth and family office wholesale investors seeking attractive risk-adjusted investment returns, professional management in commercial property investing and access to large commercial property that is typically beyond the capacity of a single investor might consider its latest Varsity One Trust.

Gold Coast opportunity

Acure is looking to raise $21.5m to purchase an A-Grade office building in the Varsity Lakes precinct on the Gold Coast, an area where the Queensland government has forecast the population will surpass one million by 2046.

“We are buying an office building — a quality A-Grade asset that is multi-tenanted — in the Gold Coast, where not only has there been population growth since COVID, but there are also constraints on additional supply,” says Morrison. “That creates really strong fundamentals to invest into office property, because there will be rental growth. And where there is rental growth, you should get capital growth.”

Acure looks to uncover assets that provide competitive risk-adjusted investment returns. This might include undervalued assets that are below their replacement cost, which can be improved through active management, such as renegotiating leases, enhancing tenant mixes or upgrading services.

“Whether it’s well below replacement cost, or we are buying it on a strong income yield, our aim is to provide investors with an attractive income yield on a regular basis, as well as capital growth investment,” says Morrison. “We focus on income-yielding commercial property, not developments. We are sector-agnostic.”

The firm has previously offered investments in retail shopping centres, large-format retail, office buildings, industrial parks, road-truck stops and hotels.

Buying a commercial property with leases in place gives visibility in trying to project forward cash flow forecasts, says Morrison. “We invite anyone who is interested in investing, or would like to know more, to contact our office on 08 9322 5448 to speak with one of our distribution team or register on our website (acuream.com.au).”