At IIG, we have two approaches to real estate investing.
Prime Green Buildings
We have investments in high performing commercial properties; aiming for those with industry-leading environmental credentials, A-Grade accommodations, and long tenancies.
Once acquired, we take an active approach to managing them, liaising with tenants and operators to improve their environmental and social impacts and maintain strong leases.
With this style of investment, we aim to deliver attractive yields with the potential for capital appreciation over the terms of the investments.
We work on ambitious rejuvenations of properties that have great unrealised long-term potential. The flagship example is the restoration and improvements of 401 Collins, an art-deco CBD building, that now has an energy use profile comparable with a new build.
These investments can have significant long-term benefits; we aim to marry capital growth with the deepest of environmental and social impacts.
A trust that owned the freehold of the Byron Bay Beach Hotel, now exited with an IRR of 15.9%. We removed pokies from the venue, connected the water system to the more sustainable municipal grid, and prepared for more upgrades before exiting the investment in February 2020.
The IIG K1 Property Trust owned Kingsgate, a new Lendlease-developed office building, awarded the highest available NABERS energy rating: 6 stars. It was our first co-investment opportunity established for a Brisbane property, and our first transaction with Lendlease. The Trust has sold Kingsgate, delivering an IRR in excess of 17%.
Through the Trust, IIG worked closely with the building managers and tenants to maintain the quality of the investment on financial and impact measures.
A Trust that owns a modern medical facility in Varsity Lakes, Queensland. The property is a three-three level medical hospital close to health amenities and major arterials. Gold Coast Hospital and Health Services, owned by the Queensland Government, is the major occupant.
The IIG 4N Property Trust was established in 2016, as a vehicle to fund the One Hundred Broadway offices through construction, and ultimately own the property on completion. One Hundred Broadway is a property with world class design and features within Sydney's iconic Central Park development. The Trust sold the property in 2018.
A Trust that owned the TAC Building, at the northern end of the Geelong CBD. Through the Trust, we have driven environmental upgrades, and set up the Impact Workshop – a co-working space for purpose-aligned companies and freelancers from the local area. The Trust has now sold the property. It achieved a regular distribution of 10% pa, and is expected to achieve an IRR of 14.9%.
The Trust owned the Quiksilver Asia Pacific Distribution Centre in Geelong Victoria a 50,180m2 property at 75-95 and 105 Corio Quay Road. IIG has improved the environmental and social credentials of the property. The property was sold in March 2016, and investors received an IRR of approximately 43.6%.
The Trust owned the Victorian EPA head office at 200 Victoria Street Carlton, acquired in 2013. The property was one of Australia’s most environmentally sound commercial office buildings at the time with a rare 6 Star green rating. The Trust sold the property in October 2014, and achieved an IRR of 27.5% (after tax).
The Trust owned 2 Jonson Street, Byron Bay NSW, acquired in June 2013. The property is used as the national flagship store of Quiksilver Inc, and includes top floor modern apartments with spectacular views. IIG delivered on its environmental strategy to achieve carbon neutral status at the property. The property was sold off market in October 2015, and the Trust achieved an approximate pre-tax, post fees total return for investors of 65%.