Our Asset Management team specialises in creating and managing real estate investments for sovereign funds and institutional, high net worth and retail investors. We focus on income surety and asset growth performance during periods of economic growth and mitigating negative performance and minimising risk during downturns.
The team manages core and operating real estate assets across a range of sectors, including hotel commercial, retail, aged-care, child care facilities and industrial. The team’s capability extends to active lease management, re-positioning assets and overseeing substantial capital programs.
Expertise in real estate runs deep through the firm.
We draw upon the expertise of our Equities Research and Real Estate Corporate Advisory teams to ensure our decision-making is based on a thorough analysis of market data and investment trends.
We have significant financial advisory and capital markets experience in real estate and REITs advising some of Australia’s largest real estate companies. In 2018, we were amongst the most active real estate advisory and equity capital market investment banks in Australia; ranked #4 in real estate M&A advisory and #2 in real estate equity capital market activity.
Our equities division also provides research on 28 real estate and 21 ASX-listed REITs.
We are currently managing $3.5 billion in real estate assets across Australia.
Active lease management
Due to a distressed debt situation, the Moelis Australia Asset Management team took over the management of three neighbourhood shopping centres from an institutional client in 2011. At the time, the assets were valued at $36 million.
Over a four-year period, the team increased both cash flow and asset value by filling tenant vacancies and changing the tenancy mix to include new national tenants, reducing operating costs, implementing more efficient onsite management and owners’ committee management, rectifying legacy DA and statutory approvals issues, and spending capital in areas where optimum value add could be achieved.
Over four years, we increased the annual portfolio net income by over 20%. The portfolio was sold for $51.3 million in 2015, realising a 43% increase in value over the period.
Active lease management
In 2013, the Asset Management team acquired the Healesville Walk Shopping Centre in the Yarra Valley and appointed a highly experienced property manager. Over the next three years, we re-configured the tenancy mix and expanded the centre’s core offering by securing a number of long-term, complementary tenants.
The new tenancy mix significantly increased foot traffic, leading to the investment returning an IRR of 20.2% over three years compared with the forecasted return of 12%.