Description

Sporting club sale gives co-investors a 20+% return

The highest performing syndicated property investment we have recorded returned a record-breaking 23% per annum between February 2018 and March 2023.

The property acquired was the Brothers Sporting Club freehold in Bundaberg. The club itself, founded in 1947, was the exclusive tenant and leased back the property from settlement.

The freehold and improvements offered an established entertainment and sporting facility inclusive of two restaurants, a café, gaming & sports bar, beer garden, auditorium, conference center, and sporting fields, all of which were built on a massive 8 hectares of land. On the land itself, the club offered bowls club facilities, netball courts, cricket nets, rugby league, and AFL fields.

Our clients, the fund manager, acquired the property for $10.9M, which at the time showed an initial yield of around 10% per annum. Also, included in the purchase terms was that the club had an option to purchase the property back at intervals of every 5 years. And on the 5th year’s anniversary, this option was exercised, and the property was sold back to the club in 2023 for $19.2M.

So, in summary, investors received an annual distribution of approximately 8.9%, and when the property was sold, investors received a capital return of $1.71 per unit on each $1 invested, in addition to the income received during the 5  years (8.8%).

 So, overall, the income and capital return calculated at a whopping 23 cents (23%) per annum over the 5-year period.

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Important information. Investment syndicates or factionalised investment like these are  generally only available to “wholesale” clients as defined under the Corporations Act. The information  is of a general nature only.  An investment in a syndicate is subject to risks associated with ownership, leasing, its general operation including possible delays or suspension of payments, loss of income and principal invested. The stated returns are not promised or guaranteed on any future investments.  Should you proceed with an investment into any fund referrred by Box Commercial we will receive an introduction fee of 2.2% (inclusive of GST) of the capital invested.