The Property Investment Podcast Bitesize Episode 5 In this Bitesize episode 5, the focus continues to be in keeping with the theme of downside risk protection, buying low and selling high. The episode talks through a co-investment made by MP Funds Management into acquiring a c.11,000 sqm commercial office building almost entirely occupied for c. $30m. A few years later, the asset was sold for $70m with minimal capital expenditure during the term. As an almost fully occupied building, the investment paid a strong cash flow during the term and a capital gain on the sale. Various factors, includi ..read more

The Property Investment Podcast Bitesize: Episode 3 For the purposes of building a resilient portfolio, this Bitesize episode focuses on the key market indicators to value and risk, firstly at a macro level and then at the asset level. Digging into American and Australian macro-economic indicators and focusing on the residential sector, the episode addresses diminishing compounding ability in a highly-priced market. The episode also addresses supply-demand fundamentals and factors putting upwards-pricing-pressure on residential dwellings ..read more

Cash is King, or is it? In an environment where we have been fortunate to be the benefactor of significant and ongoing government stimulus and an economic cushion amid COVID, a question mark sits over the longer-term cash value. As with anything, when the currency supply increases significantly, value maintenance of the dollar over the long term can become an issue. Couple these high levels of liquidity with the lowest interest rate environment ever experienced in our lifetimes, and it's the perfect environment for sharpening asset pricing across the board. Where it could be said in the past t ..read more

In this Bitesize episode of the Property Investment Podcast, Mandi Prager, CEO of MP Funds Management, provides a detailed overview of the supply-demand dynamics driving value. With a complex and layered environment across the various sub-markets; apartments, prestige sector, build-to-rent and the down-sizer market, the episode talks to the overall $7.2 trillion value of the market, with $5.4 trillion in unlevered equity vs the aggregate $1.8 trillion mortgage debt or an LVR of 25 ..read more

The Property Investment Podcast Bitesize Episode 7 One of the best check-and balances before making a buying or investment decision is to make sure the asset has been acquired at or below replacement cost. Replacement cost can be assessed using a few different methodologies; it can be assessed down to residual base land value in the most conservative fashion. This Bitesize episode 7 talks through the various check and balances for buying development sites and existing assets ..read more

The Property Investment Podcast Bitesize Episode 6 This Bitesize Episode 6 focuses on fundamentals. One of our most successful investments was repaid approximately twenty-four months late, with significant construction delays. The builder went into voluntary administration during the construction period. The site experienced significant flooding for a prolonged period due to its proximity to the riverfront and the excavation going below the water level. Nonetheless, due to the strong entry economics of the transaction, the investment outperformed and the project completed successfully, but no ..read more

The Property Investment Podcast Bitesize Episode 5 In this Bitesize episode 5, the focus continues to be in keeping with the theme of downside risk protection, buying low and selling high. The episode talks through a co-investment made by MP Funds Management into acquiring a c.11,000 sqm commercial office building almost entirely occupied for c. $30m. A few years later, the asset was sold for $70m with minimal capital expenditure during the term. As an almost fully occupied building, the investment paid a strong cash flow during the term and a capital gain on the sale. Various factors, includi ..read more

A keen eye on downside and risk mitigants means the upside takes care of itself. As famously said by Bernard Burruck, "Nobody ever went broke by taking a profit". Episode 4 of the Bitesize Property Investment Podcast talks about an investment executed with speed and diligence, ensuring the deal was secured and a win-win outcome for the transaction and investors. As a result of a keen eye on the downside & risk mitigants, the upside took care of itself with an outcome netting an approximate 20% annual return (IRR ..read more

The Property Investment Podcast Bitesize: Episode 3 For the purposes of building a resilient portfolio, this Bitesize episode focuses on the key market indicators to value and risk, firstly at a macro level and then at the asset level. Digging into American and Australian macro-economic indicators and focusing on the residential sector, the episode addresses diminishing compounding ability in a highly-priced market. The episode also addresses supply-demand fundamentals and factors putting upwards-pricing-pressure on residential dwellings ..read more

Cash is King, or is it? In an environment where we have been fortunate to be the benefactor of significant and ongoing government stimulus and an economic cushion amid COVID, a question mark sits over the longer-term cash value. As with anything, when the currency supply increases significantly, value maintenance of the dollar over the long term can become an issue. Couple these high levels of liquidity with the lowest interest rate environment ever experienced in our lifetimes, and it's the perfect environment for sharpening asset pricing across the board. Where it could be said in the past t ..read more