Professional Documents
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introduction
australian
DR A
strong
demand for residential real estate in australia Pipeline of quality projects generating abnormally high returns Highly experienced and successful inhouse real estate team
FT
Welcome
moss capital is a leading australian fund manager and capital advisor specialising in real estate opportunities. the moss capital team consists of a number of australias leading finance and investment banking professionals who have been involved in some of the countrys most significant listed and unlisted funds, capital market transactions and independent advisory roles for foreign and domestic clients.
Fund trustee & Manager moss capital Pty limited aBn: 25 135 588 224 aFsl: 337917 www.mosscapital.com.au Fund administration address moss capital real estate opportunities Fund GPo Box 1511 sydney, nsW 2001 t: +61 (2) 9239 8400 F: +61 (2) 9239 8411 e: funds@mosscapital.com.au
investor Relations Contact marianne ossovani moss capital t: +61 (2) 9239 8400 m: +61 (0) 439 002 656 e: marianne.ossovani@mosscapital.com.au
auditor of the Manager deloitte touche tohmatsu Grosvenor Place 225 George street sydney nsW 2000
indeX
tHe oPPortunity WinninG strateGy tHe australian real estate marKet exPert manaGement team tHe moss caPital aPProacH to real estate develoPment contacts
important notice this document introduces the moss capital real estate opportunities Fund as an investment proposition. this document is not an offer to invest. all parties considering an investment in the moss capital real estate opportunities Fund must read the information memorandum and complete the application form therein attached. the Fund is only open to Wholesale and sophisticated investors as defined under sections 761G and 761Ga of the australian corporations act, 2001, and is not a registered managed investment scheme under the act. interested Wholesale and sophisticated investors should contact moss capital (details inside cover) and request a copy of our detailed information memorandum, which includes the investment application form. the information presented in this document is current as of october 2010.
tHe OppORtunitY
the australian economy is characterised by strong economic growth from mining, agriculture and tourism. it has the worlds most transparent real estate market1 with positive fundamentals driven by population growth and economic development. there is an acute shortage of real estate development capital in the australian market. Whilst australia is the only Western economy not to have had a recession during the Global Financial crisis of 20082010, the foreign banks which were active lenders in the australian market have curtailed their australian lending operations. Furthermore, the four major commercial banks in australia have tightened their lending policies significantly. Whilst large developers can fund their own projects, investment opportunities in projects under $50 million (traditionally undertaken by smaller developers) have become available due to the prevailing shortage of development capital. these factors combine to create a unique investment opportunity to generate abnormally high investment returns.
1 2 3
refer Highly transparent markets. source: Jones lang lasalle, lasalle investment management this is a target only. it is not an estimate or forecast of the returns which will be achieved by the Fund. the target is stated after fees and expenses and before the impact of taxation on the investors return. investor returns on investment in the Fund are not guaranteed. the Fund is able to accept over subscriptions. the Fund may proceed to a soft close, once a minimum subscription of $25m has been achieved.
WinninG stRateGY
Quality residential development opportunities
shortage
of development capital
tightened
lending criteria of the four major australian commercial banks to invest in projects that deliver abnormally high returns
opportunity
moss
expert
strong demand
Growing strong
population
shortage
strong returns
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(continued)
there is strong demand for residential land, houses and home units. the demand for completed residential property is very strong. Both owner/occupier and private investors are active in most australian residential markets and first mortgage finance is available for home buyers. Whilst recent interest rate rises in australia have tempered residential demand, the underlying shortfall in supply prevails. this prevailing shortfall in supply is due to the lack of development projects undertaken in the last two years. Furthermore, supply is not improving as banks seek to limit their real estate lending exposures outside of residential mortgage lending. the graph below shows the significant forecasted shortage for property on australias eastern seaboard.
30,000
2001-2005 2006 2011 2016 2021 2026
-20,000
-70,000
-120,000
source: residential development council australia
inadequate supply
Major funding gaps: 1. tightened lending criteria; lvrs substantially reduced 2. mezzanine debt has largely disappeared and is very expensive 3. developers new projects have been restricted by prevailing bank lending policies
(continued)
Industrial 0 20 40 60 80 100
Average Difficult
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Glenn Willis Chief Executive Officer Glenn has 25-years experience in investment banking with specific expertise in fixed income, debt origination, structured finance and funds management. Glenn was the founder and managing director of Grange securities and later became ceo and vice chairman of lehman Brothers australia. He previously held the positions of Head of Fixed interest and debt capital markets at Fay richwhite and Head of securities trading at challenge Bank.
ian Williams Executive Director ian has over 24 years investment banking experience focused in real estate, finance and investment. He has expertise in raising both debt and equity for businesses and for projects, has a strong understanding of board audit and compliance procedures and prudential control of business operations. He was director of Business operations for urban Pacific ltd, with responsibility for 29 development projects across australia, south africa and the usa. He was responsible for the formation of macquarie Banks property syndication business, raising over $750 million for syndications and funds.
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Michael Baliva Executive Director michael brings a wealth of australian and international real estate and fund experience to moss capital, having spent the last 5 years in the us and european real estate markets. in addition to his 8 years as a chartered accountant focused on property and financial services, michael has 13 years real estate investment experience with australian listed property fund and asset managers specialising in retail property. most recently, michael headed up centro Properties national us investment/asset management capability, comprising 350 people managing 235 properties valued at us$6.4 billion. KK lim Director KK lim has almost 30 years international experience in senior management roles across asia, europe and australia. during this time KK held positions with standard chartered Bank, Hastings-deering Group, aBn-amro, national Westminster Bank and was managing director - asia of macquarie Banks Property Group for 6 years. in 1993, KK pioneered macquarie Banks entry into china, successfully leading the team that set up the first foreign managed fund to directly invest into chinese residential real estate.
Rodney pryor Executive Director rodney is a chartered Financial analyst with more than 13 years experience in the financial services industry, specialising in debt financing and restructure, credit and financial analysis, and risk assessment. Prior to being lehman Brothers australian lead credit analyst, rodney was director of credit research at Grange securities, before which he was an accountant at Pricewaterhousecoopers.
todd perry Director, Developments todd has strong property development experience. throughout the last decade todd has been responsible for the delivery of many significant development projects. He also has wide experience across a variety of property management tasks, including leasing, acquisition and disposal, property valuation and project management. todd holds a degree in business with majors in Property and valuation and a diploma in Government (Project management). todd is an accredited professional with the Green Building council of australia.
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estate development projects are subject to risk. the ability to assess and mitigate risk determines the level of success of real estate projects optimal risk management and mitigation is achieved by astute project selection, rigorous investment analysis, comprehensive project risk assessment and the establishment of clear strategies to manage and minimise risks risk assessment and mitigation strategies are implemented prior to investing in a project. once the investment is made, mitigation strategies are updated to reflect changing market conditions
COntaCts
interested Wholesale clients and sophisticated investors can contact moss capital for a copy of the moss capital real estate opportunities Fund detailed information memorandum, which includes the investment application form. Contacts ian Williams Executive Director t: +61 (0) 2 9239 8400 address moss capital real estate opportunities Fund level 26, 135 King st sydney nsW 2000 GPo Box 1511 sydney nsW 2001 (c) 2010 moss capital Pty limited this document is not an offer to invest. the information contained in this document is not exhaustive of information relating to the Fund. this document is not and is not required to comply with the content provisions of a Product disclosure statement or Prospectus under the corporations act 2001 (cwth). this publication contains information in summary form and is therefore intended for general guidance only. it is not intended to be a substitute for detailed research or the exercise of professional judgment. neither moss capital Pty limited or nor any other member of the moss capital organisation can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. on any specific matter, reference should be made to the appropriate advisor. michael Baliva Executive Director t: +61 (0) 2 9239 8400 KK lim Director t: +61 (0) 2 9239 8400
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