The Carpe Diem Prime Living Fund is our seventh Fund and provides our first capital city exposure to the “living” sector.  The first asset in the Fund is the 6 level 42 room co-living property in the prime Sydney harbourside suburb or Elizabeth Bay called Montpelier House.  The property was acquired at an attractive rate per square metre ($8,500/sqm) and attractive yield.  It was acquired 15% below most recent valuation.  The property has prior approval for an additional two levels and conversion to a boutique hotel.  We see strong medium term opportunity for this asset to be a highly attractive repositioning opportunity into high end residential apartments given some apartments in Elizabeth bay are selling for more than twice what we paid for the entire property.  In the meantime investor will benefit from an attractive yield form the property during the holding period.

We have generated strong returns from the residential space across Australia, focussing largely on hotels and motels for corporates and leisure. In essence we have been focussed on investing in ‘rooms’; properties where people stay.  this is a core real estate segment.  Our first exit from an investment in this space resulted in a doubling of property value in less than four years.

Our new Carpe Diem Living Fund is focussed on the similar ‘living’ thematic and is anchored by a prime located residential property branded UME in the Eastern Suburbs harbourside location of Elizabeth Bay just 2 kilometres from the Sydney CBD.

We believe the property is very attractively priced, reflecting a 16% discount to 2023 valuation and a price per room and price per square metre rate which presents value.  

The Fund will provide investors with a forecast 7.5% p.a. distribution yield.  Over the medium term we expect the property value to benefit from multiple options including redevelopment, conversion to prestige residential apartments, boutique hotel, addition of more levels (previously approved for addition of two floors) etc.  We anticipate the Fund to acquire additional living related investments.