Stronger Together - Does your property fund manager have a building partner? We do.
20 August 2017
| Category - Advisory

Does your property fund manager have a building partner?

“Do what you love and love what you do.” It could be argued that these wise words, echoed through the ages by various world luminaries, are at the heart of every successful business.

So if you loved building properties and were proud of the end result, would you buy a share of it?

The Graystone Group did. Six of the eight Stronghold property trusts to date are buildings that have been built by the Graystone Group and a number of the investors in these trusts have an affiliation with the Graystone Group.

Graystone Chief Financial Officer Bruce Anderson said Stronghold Investments was the missing piece in the property timeline for the company.

“Graystone has been around for 35years and was primarily focused on construction and project management but as we continued to build on our experience, we found that we had all the skills and experience in house to manage the properties after construction was completed,” Bruce said.

“The missing piece in this property timeline – was the long term ownership and investment.

“Some good quality assets ended up leaving the wider group because you simply can’t afford to hold onto everything.

“So I helped create a funds management company in order to stay involved in the assets we created.”

Bruce teamed up with former commercial property agent Steve de Nys and institutional property banker Tony Boyd in 2013 to create Stronghold and hasn’t looked back since.

“We were proud to finally be able to offer to friends, family and business associates the products that we had created – as a result, all of our funds to date have been very successful,” Bruce said.

The first property fund created, Stronghold Westlink Green Property Trust No.1, has been built and managed by Graystone and is now delivering an 11.1% cash return per annum in monthly installments to its investors.

Why Stronghold and Graystone are Stronger Together

Bruce said the association between builder and funds manager provided multiple benefits including:

  • Access/ first option to buy new buildings
  • Confidence in the quality of the building. Graystone has a reputation for building A-Grade suburban business precincts and was rectently awarded the Master Builders Association Best Commercial Building up to $50m, for the Puma Energy Australian headquarters at BTP Northshore Hamilton.
  • An inside understanding of the construction journey and potential tenancy mix
  • Cost efficiencies
  • Delivery of tenant fit outs on time and on budget

However, unlike other funds managers with a property developer parent company, Stronghold has been created as an independent entity and has already branched out from the Graystone stock of buildings to invest elsewhere.

Stronghold’s most recent fund was created to purchase two modern, fully leased, multi-tenanted office buildings in the Melbourne suburban growth precinct of Monash. (Click here for more information)

“I think the key to our success to date has been using independent advisors and experts outside of the Graystone and Stronghold group,” Bruce said.

“We have an arms-length verification of values and bank certification for every one of our investments. We have a separate legal team which reviews not only for the purchase contract but also for the conveyancing, review of leases and lease transactions.”

To find out more about Stronghold Investments visit http://www.strongholdinvest.com.au/what-we-do/investment/.

To find out more about the Graystone Group visit http://graystone.com.au/.