Back in 1993, GDI Property Group commenced its operations as an unlisted fund manager of unlisted property funds. Since that time much has changed in the world, we have seen a number of property boom and bust cycles, and we ourselves have become a listed property owner and manager. However, unlisted property funds remains at the core of GDI.
Since 1993 we have launched nearly 30 property funds, with 23 of those either completed or with our investors having been provided with a liquidity option. Our track record is second to none, and to date we have never lost an investor any money. Our average internal rate of return (IRR) on equity, after fees and costs, has been in excess of 20%p.a.
Although we have delivered development style returns, we do not take development style risks. We typically buy well located buildings that have four sides of natural light, easily divisible floor plates and an opportunity to add value through re-leasing or refurbishing the property. We like properties that have multiple exit options, either through achieving a re-rating of the property following its re-leasing or refurbishment, through residential conversion or strata sell down. In due diligence we try to understand the downside risks as much as the upside potential.
Most of our funds are single asset funds, although in certain circumstances funds will be multi-asset. Regardless, all our funds are closed end and accordingly, there is little liquidity. Only investors who are sophisticated or wholesale investors (as the Corporations Act defines this) can invest in these funds.