GDI Property Group

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Investment Process

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GDI has a four stage investment process:

1. Ongoing, in depth market, trend and asset research

GDI is an active seeker of value-add commercial property opportunities in Australia. GDI carefully researches these markets seeking property that meets strict investment criteria. It keeps abreast of market and economic trends through regular visits to target markets and frequent interviews with a broad cross-section of market participants. It supplements its own findings with research from highly regarded property and economic research agencies.

2. Highly focused property asset selection and management

GDI acquires under-valued properties generally for between $5 million and $250 million in markets with strong upside potential. Asset selection at the right price has been a fundamental key to GDI's previous successful performance.

The key criteria it looks for when acquiring properties include excellent locations, quality tenants, acquisitions at substantially below replacement cost, good average lease expiry profiles, leases that provide for regular rental increases, future refurbishment or strata potential, and markets where vacancy rates are low or falling.

3. Active repositioning of assets for capital growth out performance

GDI invests in assets that offer early value-add potential and/or assets that provide steady growing cash flow. It seeks to aggressively improve rental streams from existing tenants and then sell the property at a premium price.

4. Intensive risk control of investments

Before making any property acquisition, GDI carefully analyses the risks attached to the investment and seeks to minimise those risks during the term of the investment. The establishment of clearly defined exit strategies and the ability to sell assets at the appropriate time of the investment cycle has enabled GDI to often maximise equity performance and reduce risk.

Combined with our use of commercial property assets - which are lower risk than equities, historically - the result is: excellent total returns over a medium investment term, comprised of good quarterly rental yield distributions, overlaid with high capital growth returns, with the added benefit of some tax advantages regarding income treatment GDI's investors have reaped the rewards of this investment philosophy.

Reflecting its intensive management focus, GDI offers a limited number of select property funds - as opposed to creating large, passively held asset portfolios.

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