CapPru Industrial Value Add Fund

CapPru is acquiring two fully leased infill industrial estates in Brisbane’s established southern corridor—Archerfield and Richlands—at a material discount to replacement cost, with immediate access to rental reversion. Both assets are 100% occupied by a diversified mix of logistics, manufacturing and light industrial tenants, generating c. $5 million per annum in net passing income. The portfolio offers c. 20% embedded rental reversion, with tenant negotiations already underway.

• 15% p.a.¹ Target IRR (pre-tax, post fees)*
• 40%² Portfolio discount to replacement cost
• 20%³ Embedded rental reversion

^{Indicative and target only, not a forecast, promise or guarantee of future performance. Actual results may differ materially.} 

<sup>1. Modelled target IRR (pre-tax, post fees) based on CapPru’s acquisition modelling and assumptions that are not certain or guaranteed and may not be achieved. Provided for financial advisers and wholesale investors only.
2. Based on CapPru’s internal, non-independently verified estimate of replacement cost against the blended acquisition price for Archerfield and Richlands. Subject to revision.
3. Reflects the blended spread between passing and CapPru’s assessed market rent across the portfolio. Not independently verified and not assured to be achieved.</sup>

Counter-Cyclical Entry
Acquiring at a material discount to estimated replacement cost, well below forecast cost to deliver equivalent new supply today.

Fully Leased, Diversified Income
100% occupied across a diversified and long standing tenant base spanning logistics, manufacturing and light industrial occupiers.

Embedded Rental Reversion
Leasing activity is already underway ahead of exchange, with early wins secured against a blended 20% spread to market rents.

Brisbane Infrastructure-Led Demand
$71.4 billion infrastructure pipeline, c.260,000 forecast population growth by 2030, and Olympic driven demand expected to generate an additional 150,000–300,000 sqm of industrial floorspace requirements.

Structurally Constrained Supply
Escalating land and construction costs are expected to restrict new supply, supporting higher economic rents and widening the gap to existing passing rents over time.

Quality Assets, Non-Core to Current Ownership
Recycling as secondary to the vendor’s core mandate and strategy - creating access to high-quality stock in tightly held Brisbane industrial precincts.

Flexible Exit Strategies
Base case hold, with upside optionality to subdivide into freehold titles, sell down individual assets, or pursue a portfolio sale as income resets.

As with any unlisted property investment, the Fund carries risk. Key exposures include movements in property values and market conditions, tenant credit and leasing risk, interest rate and gearing risk, and settlement risk, the acquisition remains conditional on completion of due diligence, execution of contracts, and Board/Investment Committee sign-off. Neither distributions nor capital are guaranteed. Investors should read the full Information Memorandum and consider these risks before making an investment decision.

This information has been prepared and issued by Capital Prudential Manager Pty Ltd ACN 660 087 847 (Investment Manager), an authorised representative 001 298 438 of Capital Prudential Funds Management Pty Ltd (ACN 636 279 082, AFSL 524 725), in connection with a proposed wholesale investment fund currently under development and is only for the use of persons who are wholesale clients within the meaning of section 761G or 761GA of the Corporations Act 2001 (Cth).

The proposed fund referred to in this document has not yet been established and no trustee, responsible entity or issuer has been appointed as at the date of this document.

This information is not available to any person who is a retail client within the meaning of section 761G or 761GA of the Corporations Act 2001 (Cth). It is general information only and is not intended to provide you with financial advice and has been prepared without taking into account your objectives, financial situation or needs.

This document is provided for information purposes only and does not constitute an offer, invitation, solicitation or recommendation to invest in any financial product. Any future offer will be made only through definitive offer documentation made available in accordance with applicable law.

If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser.

This information is only as current as the date indicated and may be superseded by subsequent market events or for other reasons. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information.

All investments contain risk and may lose value.

There is no assurance that the proposed fund will be established or that any investment opportunity described in this document will proceed.

Neither the Investment Manager nor any future trustee, responsible entity or issuer (if appointed) gives any representation or warranty as to the reliability, completeness or accuracy of the information contained herein.

Any opinions, forecasts, estimates or projections reflect judgments of the investment manager, Capital Prudential Manager Pty Ltd ACN 660 087 847 as at the date of this publication and are subject to change without notice.

Rates of return cannot be guaranteed and any forecasts, estimates or projections as to future returns should not be relied on, as they are based on assumptions which may or may not ultimately be correct. Actual returns could differ significantly from any forecasts, estimates or projections provided.

References to proposed investment terms, structures, target returns, strategy, asset pipeline or fund characteristics are indicative only and remain subject to change.

Past performance is not indicative of future performance.

This document contains market data and forecasts published by CBRE Research and by Colliers. Charts and figures attributed to those sources have been reproduced or redrawn by Capital Prudential from their published material. Neither CBRE nor Colliers has been engaged in connection with this document or the proposed fund, has reviewed or approved its contents, or endorses the proposed fund, any future offer or any statement made in it. Neither firm accepts liability for any use of that material in this document or for any reliance placed on it. Forecasts are inherently uncertain and actual outcomes may differ materially.

Founded in 2019, CapPru is a specialist fund management, asset management and advisory firm focused on creating investment opportunities while providing a complete capital solution to a portfolio of partnered mid-scale property developers across specialty commercial, industrial and boutique residential property development sectors in Australia.

With diverse backgrounds across securitisation, treasury, accounting, law, corporate banking and real estate, the highly credentialed team have a proven track record in generating attractive, predictable returns through disciplined investment in real estate development.

Jarrad is an experienced property and funds management executive and director. He is the Managing Director of the Capital Prudential business with a particular focus on investments and asset structuring.

Jarrad was previously founder and director of Accord Property, a national property development and funds management company specialising in the development of small to mid-scale commercial projects.

Jarrad is also a non-executive director of Helping Hand Aged Care and was previously board advisor to Haigh’s Chocolates.

Qualifications: BBus (Property), GAICD, DCM

Andrew has over 30 years of experience in financial services across Australia, the US, Europe and Asia. He has acted as a Director of many listed and unlisted companies, including as a non-executive director of BT Financial Group and Chair of Diabetes Australia.

During his executive career, Andrew was a founding partner of Koda Capital, a leading wealth advisory business, which he established in 2014. Prior to that, Andrew served as an Executive General Manager at NAB/MLC, Managing Director of JBWere and Chief Operating Officer of Goldman Sachs | JBWere.

Qualifications: B.Comm, MBA, GDipFinPlan, GDipAppFin, GAICD, FCPA, SF Fin, FGOA, FCG

Katrina brings over thirty-five years of financial services experience, with deep expertise in funds management, listed investment vehicles, portfolio oversight and governance.

Katrina is currently a Non-Executive Director and Chair of the Audit and Risk Committee for L1 Global Long Short Fund (ASX:GLS), Non-Executive Director of PieLAB Council Capital Fund Pty Ltd, and a Non-Executive Director of Surfing Australia.

Katrina served as Chief Financial Officer of ASX-listed Pengana Capital Group (ASX:PCG) from inception until 31 December 2024, providing oversight of risk, compliance and reporting across equities, private markets and credit strategies. Katrina’s experience covers multiple jurisdictions, with broad and deep knowledge across different sectors, entities and products within financial services.

Prior to PCG, Katrina was an Executive Vice President at BT Financial Group, with numerous roles including Chief Operating Officer of BT Portfolio Services.

Katrina initially qualified as a Chartered Accountant whilst working for Price Waterhouse.

 Qualifications: B.Ec, FCA GAICD, CISL (Business Sustainability Management), Grad Diploma in Applied Finance and Investment (FINSIA)

Brenton is a highly accomplished property development professional and experienced board director with executive management experience spanning construction, architecture, automotive, pharmaceuticals and distribution.

Awarded membership of the Order of Australia (AM) for services to the Australia-Thailand and Australia-ASEAN relationship, Brenton has been Executive Chairman of DWP (Design Worldwide Partnership) an integrated design company with 350 staff providing architectural and interior design solutions across Asia, India and the Middle East since 2004.

Brenton is a fellow and part time facilitator at the Institute of Directors of Thailand, current Treasurer and past President of the Australia-ASEAN Chamber of Commerce as well as Chairman of The Advance Australia Council (Thailand) and The Australian Football League (AFL) Thailand.

Previously, Brenton held the positions of Director of the Board of Trade Thailand, President and Vice President of the Australian–Thailand Chamber of Commerce and President of the South Australia Club Thailand.

Brenton is currently undertaking a Doctorate of Business in Corporate Governance with the Australian Institute of Business, and is a graduate of the University of South Australia (B.ed Sc.) and obtained his MBA from the University of Singapore.

Qualifications: MBA, B.ed Sc.

Stephen Bull has over 30 years of experience in the property sector, spanning operations, development, capital transactions, strategy and governance within major listed companies, including Stockland and Westfield.

Stephen finished his executive career at Stockland in 2018 where he held the role of Group Executive and CEO of their Retirement Communities business. Prior to that Stephen led their Retail, Office and Industrial Development team.

Since 2018 Stephen has built a diverse Board portfolio including listed, private, government and for purpose organisations. He is currently a Non-Executive Director of Summerset Group Holdings Ltd (NZX: SUM & ASX: SNZ), Chair and Non-Executive Director of Bridge Housing Ltd and a Board Member of the ACT Government City Renewal Authority (CRA).

Stephen is a member of Chartered Accountants (Australia and NZ) and The Australian Institute of Company Directors. He holds Bachelor of Commerce and Bachelor of Psychology (Hons) degrees.

Qualifications: B.Comm, B.Psych (Hons), CA, MAICD