What makes a Stronghold property investment different to the others? Just ask former institutional banker, property economist and Stronghold Director Tony Boyd and you’re sure to receive a very long answer. Below are the highlights of his eulogy.

1. Stronghold funds are only open to wholesale investors

Retail funds are available to “mum and dad” investors, the most popular type of retail fund usually involve unitised portfolio of property assets which allows for open trading of unit values on the stock exchange. These funds are called Australian Retail Investment Trusts (A-REIT).

Stronghold is licensed by the Australian Securities and Investment Commission (ASIC) to manage investments for wholesale investors only under an Australian Financial Services Licence. Wholesale investors are by their very nature sophisticated and experienced investors.

Currently each one of our Property Trusts are created to purchase a specific asset and the income return is therefore specific to that property.

To be eligible to invest in our property funds you must qualify as a wholesale investor. To qualify as a wholesale investor you must be*

  • an individual with assets of at least $2.5million and gross annual income of $250,000, both of which are certified by a qualified accountant
  • an experienced or professional investor (supplying relevant certificates as to your credentials or AFSL Licencee)
  • investing more than $500,000 in a lump sum*Note this is a summary only. For a full explanation of the wholesale investment terms click here – need link

2.  Stronghold is a conservative fund manager, with sustainable returns and a focus on maintaining asset value

Stronghold is committed to full and transparent reporting to its investors. Calculations of return on investment are conservative, taking into account future property maintenance schedules, potential leasing costs etc. to ensure consistent sustainable cash and capital returns.

We budget capex out 10 years using an independent building surveyor and ensure we have contingency funds for tenancy changes, capital works, incentives and leasing fees. Our fund forecast modelling includes potential changes to the funding / banking environment as well as general property market trends.

3.  Our management fee is a percentage of the distributable income

One of the key differentiators between Stronghold and other property trusts, is that management fees for each trust are an agreed percentage of distribution rather than a fee removed from the total income before distribution or on the capital value of the property.

Which means we are rewarded on the same basis as our investors. The more we distribute the more we earn, the higher the sale price of an asset the more reward there is for Stronghold.

By the same token, if our investors aren’t getting paid, we aren’t getting paid.

We have made a conscious decision to ensure Stronghold is aligned with its investors.

4.  Stronghold invest in quality suburban commercial precincts

We limit our offerings to assets and environments that we’re experts in.

Our building partner, Graystone Group has an extensive track record delivering industrial estates and, more recently, business and technology precincts, in South East Queensland and individually each of the directors have a background and experience in suburban commercial property.

Stronghold is also the founding partner of The Suburban Alliance which is a is a not for profit collaboration of people and businesses who believe that opportunities for greater suburban quality of life, business opportunity and economic expansion could get more attention and support than they currently do.

For more information about the Suburban Alliance, click here.

5.  We commission arms-length verification of valuations, leasing, reporting and due diligence

In addition to meeting the reporting and statutory requirements of its AFSL licence, Stronghold also has internal compliance procedure. An external, arms length consultant is engaged quarterly, to verify that Stronghold is complying with its policies and procedures as well as ASIC compliance and a monthly review of fund performance.

We pro-actively manage all of our funds, monitoring monthly the cashflows, financials, profit and loss, re-forecast every month and provide regular and transparent updates to our investors.

6.  Backed by Graystone, an experienced project and construction management company with a 35-year track record of building business precincts

Stronghold has close affiliation with Graystone Group. Over 80% of our current portfolio of assets are Graystone built and managed.

Our office is located in the Graystone Group headquarters at Westlink in Darra and Graystone Director of Finance Bruce Anderson serves on our board of directors.

For more information about the Graystone Group partnership click here.

7.  We offer personalised service and a direct line to the directors

As a boutique funds manager, Stronghold directors are involved in the day to day running of the company. We are all actively involved in the property sector and are invested in our products on a personal and professional level.

Each of the three directors of Stronghold have complimentary skills and experience that give us a combined experience of over 60 years in the financial management of commercial real estate.

Steve de Nys, a former commercial real estate agent with two international agencies is our resident expert in the Australian commercial property market and is a founding Director of The Suburban Alliance

Bruce Anderson, CPA Fellow and experienced compliance officer has the corporate governance and experience in property funds management.

Tony Boyd is a commercial valuer, property economist and institutional banker with 20 years’ experience in Australia and overseas. He’s seen the best and worst of property trusts and is a stickler for the numbers. He is a Fellow of, and the immediate past Chair, of RICS Queensland.