Operating Real Estate
Combining the capital appreciation and security Of traditional passive real estate investment, with an enhanced running yield via superior operation of the businesses that occupY the real estate
M.H. Carnegie has a strong track record investing in 'operating real estate' and has invested in some of Sydney's most iconic real estate, including Kinselas Hotel, The Steyne Hotel, The Marlborough Hotel and The Entertainment Quarter. These properties typically incorporate a freehold (or long term leasehold) interest in the land, providing downside protection as well as capital appreciation, in conjunction with an operating business which delivers a steady operating yield during the investment hold period.
Example assets include: pubs, marinas, accommodation hotels (sub 200 rooms), retirement villages, caravan parks, low cost housing, car parks, mixed use entertainment venues and data centres.
M.H. Carnegie has partners with significant experiences in their respective niches, which help evaluate and deliver substantial operational improvements to any investment. These include:
Andrew Robertson - M.H. Carnegie's partner in marinas. Prior to partnering with Carnegie, Andrew bought and sold the Abell Point Marina in Airlie Beach
Investors including Gerry Harvey, John Singleton, Brett Blundy, Mapp Group and Greg Paramor as part of the consortium invested in the Entertainment Quarter
| Case Study | |
|---|---|
| Company | Sydney Superyacht Marina |
| Date of Investment | September 2012 |
| Investment Status | Exited (October 2016) |
| Key Return Metrics | IRR = 33%, 2.1x MoM (unleveraged) |
| Deal Summary | Sydney Superyacht Marina is a 29 berth marina located in Rozelle, Sydney Harbour, catering to boats >20m in length. The marina comprises both wet land and dryland facilities including parking, offices and a former restaurant/function area slated for redevelopment. M.H. Carnegie saw this as a unique investment opportunity as it is the only superyacht marina in NSW, well positioned to service the high-demand, supply-constrained Sydney Harbour, with significant land development potential. |
| Carnegie Value Add |
Through the M.H. Carnegie network, the deal was able to be negotiated on a proprietary basis. M.H. Carnegie arranged the investment consortium with value added partners and a creative deal structure. M.H. Carnegie played an active role on the board developing the strategic direction and maximising the returns on exit |
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