Business Overview
Ray White Invest is the property funds management arm of the Ray White Group. Our aim is to deliver to our investor partners superior risk-adjusted financial returns from investment in high quality real estate transactions.
We undertake two primary forms of property investment:
- Investing equity or mezzanine capital in high quality property developments being undertaken by proven property developers, offering appropriate risk-adjusted target returns that can be substantiated by reasonable and well tested assumptions.
- Acquiring investment-grade real estate that provides both a reliable and growing income stream together with potential for capital gain, to deliver a strong total investment return.
We undertake these investments within both registered and unregistered managed investment schemes.
Our Australian Financial Services Licence (AFSL) entitles Ray White Invest to:
- provide general financial product advice about interests in managed investment schemes;
- deal in a financial product (issuing, applying for, acquiring, varying or disposing of a financial product) in respect interest in managed investment schemes;
- operate registered managed investment schemes (including the holding of any incidental property) in its capacity as responsible entity holding direct real property and mortgages to retail and wholesale clients.
Since forming in 2001, we have established a strong investment track record, both in terms of realised returns for our investor partners (19.64% p.a. after all fees, pre-tax) and consistency of investment offers (invested in $2.4 billion of property, across 217 transactions). We have achieved this by a focus on the following:
Building a strong team of investment professionals
We have built a strong team of property investment professionals with a broad range of experience and skills. Since forming, we have remained focussed on recruiting experienced property professionals, to ensure we are able to take full advantage of the property investment opportunities that we are introduced to.
With backgrounds from leading companies such as Macquarie Bank, QIDC, Westpac, Bovis Lend Lease, PricewaterhouseCoopers and Coles Myer, our depth of property skills enables us to professionally source, evaluate and manage property investment opportunities for our investor clients.
Working collaboratively with the broader Ray White Group
Our relationship with the broader Ray White Group provides us with tremendous opportunities to source quality investment opportunities throughout the Australian real estate market. There are 8,000 people in the broader Ray White Group covering residential, commercial and rural real estate, mortgage broking and construction throughout Australia and New Zealand. Their relationships with vendors, developers and property consultants provide us with a valuable source of potential investments. In addition, we are able to draw on the extensive experience and ‘real-time’ knowledge of Ray White Group members to provide us with invaluable information during our due diligence and investment management processes.
Approximately 45% of all of the investments undertaken by Ray White Invest has been sourced from the broader Ray White Group relationships, providing us with a competitive advantage in identifying quality investment opportunities.
Being flexible
We have been prepared to be flexible in our investment approach. To work with the best developers and other property operators, flexibility is important as these groups have individual objectives, operating styles and risk profiles. This flexibility has enabled us to develop strong on-going relationships with some of Australia’s leading property professionals, including developers, brokers and consultants.
Ray White Invest has adopted structures which are appropriate for all its stakeholders including developer clients, external financiers and investor partners.
Note: Past performance is not a reliable indicator of future performance
Co-investment & alignment of interests
The White family invests in all of our offers, on exactly the same terms as other investors.
In addition, the fee structures incorporated into our investments together with internal remuneration packages are designed to ensure a strong alignment of interest with our investor partners.
Company Ambitions
Our aim is to continue the growth momentum of the business, by:
- Continuing our focus on delivering strong returns to investors, within a secure compliance framework, and aligned with the culture of the business;
- Continuing the recruitment of highly skilled experienced property investment professionals;
- Working further to take advantage of the investment referrals from the Ray White Group. (We currently only follow up a fraction of total possible opportunities. Building a larger team will ensure we are able to take better advantage of the opportunities we are presented);
- Retaining flexibility in our investment strategy; and
- Expanding our investor base, by attracting larger investors (including institutional investors) to invest in our property funds.
If we continue our current momentum, we expect to have total investor funds under management of $400m within 4 years.
Investment Track Record
| Completed | Current | Total as at 30/06/08 | |
| Number of Investments | 154 | 63 | 217 |
| Total Value of Projects ($m) | $1,072 | $1,320 | $2,392 |
| Total Capital Invested ($m) | $225 | $254 | $480 |
| Total Return ($m) | $51 | N/A | $51 |
| Average IRR (%pa) | 19.64% p.a. * | N/A | 19.64% p.a. * |
*Note: Last performance is not a reliable indicator of future performance. Multiple investments in the same projects have been excluded.
We aim to achieve this growth through the use of a range of investment vehicles as summarised below. By having a range of vehicles, we are able to continue our flexible approach to investment.
| Structure/Vehicle | Investment Overview | Medium Term Targets |
| Priority Access Fund 1 | A property investment fund established in 2007 with a 30% entitlement to RWI's entire pipeline across commercial, industrial, retail and residential property sectors. | Continue to deliver strong risk adjusted investor returns. Now fully invested. |
| Priority Access Fund 2 | A property investment fund established in 2007 with a 30% entitlement to RWI's entire pipeline across commercial, industrial, retail and residential property sectors. | Continue to deliver strong risk adjusted investor returns. |
| Far North Queensland Opportunity Fund | A regional fund established in 2007, targeted at family offices and providing a high degree of investor representation and involvement. This fund has a 70% entitlement in RWI's entire pipeline of opportunities in the Far North Queensland ('FNQ') region. | The fund seeks to capitalize on the high growth in the FNQ area which is being supported by expansion of tourism, mining, infrastructure and defence industries. |
| Retail Property Trust No 1 | A closed-end wholesale property trust established in 2007 to enter into a joint venture with Blair Group to acquire two retail shopping centres with future development opportunities. | Undertake property development to capitalize on opportunities and improve asset value. |
| Service Centre Trust | An open-end property trust establisehd in 2005 with a portfolio of 12 service centre properties. Has a current asset value of approximately $57 million. | Continue to deliver strong risk adjusted investor returns. |
| Property Trust No 5 | A closed-end wholesale property trust established in 2006 to undertake a CBD-fringe office building development. | Hold asset to continue to deliver strong returns to investors. |
| Boundary Street Property Trust | A closed-end wholesale property trust established in 2006 to undertake a CBD-fringe office building development. | Hold asset to continue to deliver strong returns to investors. |
| Leveraged Development Fund | Umbrella mortgage fund. Project specific mezzanine investments for wholesale investors. Commenced in 2001 and has a strong investment track record. | On-going vehicle for mezzanine investments for RWI. |
| Keppel Bay Plaza Property Trust | A closed-end wholesale property trust established in 2007 to acquire and re-develop a retail shopping centre. | Undertake property development to capitalize on opportunities and improve asset value. |
| Montague Road Property Trust | A closed-end wholesale property trust established in 2007 to acquire a site and undertake a 14,000sqm office building development (pre-committed). | Undertake property development to capitalize on opportunities and improve asset value. |
| Sherwood Property Trust | A closed-end whole property trust established in 2007 to acquire and re-develop an industrial complex at Sherwood, Queensland. | Undertake property development to capitalize on opportunities and improve asset value. |
Ray White Invest is part of the larger Kasmore Group, which incorporates the broader property interests of the Ray White family, including interests in Ray White Constructions (a general commercial contractor with annual turnover targets in excess of $80 million), Ausbuild Pty Ltd (a residential land developer and home builder with annual turnover targets in excess of $100 million) and a portfolio of property investments including investments in Ray White Invest managed investments. Ray White Invest is a core part of the Kasmore business, providing capital solutions to clients of Ray White Constructions as well as to Ausbuild, and providing investment opportunities for Kasmore itself to invest in. Kasmore has a diverse range of investments (both company and projects) and income sources, that provides a profitable platform upon which to grow the Ray White Invest business.
