Business Profile
GIPL is a privately owned, independent, property investment and advisory firm specialising in real estate equity finance and investment.
Our core business involves investing in and advising on medium to large scale property projects in partnership with third party developers and investors.
Our focus is on equity investment in real estate projects with target IRR’s in excess of 20% p.a. and end values of between $20 million and $200 million. Whilst active across all sectors of the real estate investment market, we have been particularly active in residential development and asset repositioning and have also been involved in a number of commercial, and retail projects. We have traditionally invested along the eastern seaboard of Australia and in particular, Victoria and Queensland.
Opportunities are sourced via our extensive network of relationships with developers, property professionals, wholesale investors and other industry participants.
Transactions predominately comprise opportunistic direct equity investments in real estate acquisitions, developments or asset repositioning projects.
We typically seek to arrange the capital for transactions in which we invest and undertake:-
- due diligence, feasibility and risk analysis;
- legal, financial and tax in joint venture structuring;
- debt procurement;
- documentation;
- transaction management;
- ongoing investment management on behalf of ourselves and our capital partners; and
- development management.
In addition to our core investment activities, we also:
- Arrange structured finance for real estate transactions;
- Manage wholesale direct property investment funds;
- Manage wholesale direct property investment syndicates;
- Manage the direct development of certain assets;
- Advise on the structuring and implementation of medium to large scale development projects; and
- Advise on the optimal management and realisation of property portfolios.
Our Philosophy
Our businesses philosophy is orientated around risk management and best practice in all of our endeavors. This emphasis is complimented by a strong entrepreneurial approach to problem solving.
It is an axiom of our business to co-invest our own capital in transactions in which are involved wherever possible. This characteristic strongly aligns our interests with our capital partners and acts as a natural regulator for any investment which we make, and the way in which we manage our investments. Our co-investment policy reinforces the practice of only investing in quality transactions, alongside capable and experienced development partners whose interests are also aligned by their own equity investment.
Our business has a strong corporate culture in everything that it does, which also embraces the community involvement of its executives. We pride ourselves on our professional conduct, strong business relationships, regular and accurate communication, problem solving ability and persistence, business acumen and resilience.
Our greatest strengths are our:
- People;
- Attitude; and
- Culture.
Partners
Our transaction partners fall into one or both of the following categories: Development Partners and Capital Partners.
We have worked with numerous Capital Partners all of whom are wholesale investors. These include Babcock & Brown, Investec Bank, Industry Superannuation Property Trust, Allco, Jagen (a Liberman family vehicle), Nesher (a Besen family vehicle), and numerous high net worth families and individuals. We enjoy strong relationships with our Capital Partners to whom we provide a high level of accountability and communication.
Our business has worked with over 20 different Development Partners across New South Wales, Victoria and Queensland. These include a mix of listed and unlisted property developers, fund managers and private family interests including Australand, APN Funds Management, Intrapac, Baron Corporation, Asset1, Multiplex, Buxton Property Group, Hamton Property Group and Brencorp Properties (a Peter Scanlon controlled vehicle).
A significant amount of opportunity origination stems from our Development Partners with whom shares deep relationships.
Risk Management
Our business prides itself on its strong focus on risk management based on a disciplined approach to project and financial risk analysis, market analysis, due diligence, financial modeling, documentation and project delivery. Much of our success can be attributed to the extensive due diligence and analysis undertaken for every transaction in which we have been involved. hawse have developed significant expertise in each of these areas.
Each transaction undergoes rigorous scrutiny and requires approval by the Investment Committee prior to commitment of funding. With combined experience spanning several decades investing in and advising on property transactions, the four members of the Investment Committee are well placed to assess risk and make informed investment decisions. Each is actively involved with our business on a day-to-day basis, ensuring continuous exposure to the range of transactions being considered, as well as the property market generally.
Our approach to transactions specifically contemplates the sharing of risk between project proponents and equity investors. Typically, we invest a minimum of 5 to 10% of total equity required in each of the transactions in which hawse have an interest. In instances where capital contributions are unequal, we will seek to align the various parties’ interests and equalise risk through a combination of methods we have devised and employed by in past transactions. These include:
- structured return profiles (for example, priority returns up to an agreed IRR hurdle);
- performance hurdles and milestones;
- underwriting of minimum agreed site values;
- layering capital contributions; and
- prioritised loans.
The strongest indicator of risk management is our own commitment of equity funding for each transaction.
The Investment Committee considers, and where appropriate approves, asset acquisitions and transactions. The Investment Committee, which comprises all four of the business’ directors, is ultimately responsible for determining the size and basis of our investment.
It is the responsibility of our executive team to monitor leverage, manage liquidity, review asset valuations, research and assess investment opportunities and to engage external experts where required to ensure all possible risks are identified, investigated and managed.
Our Compliance Arrangements also contain a Risk Management policy which is engrained in the culture of our business.
Transaction Involvement
As part of our origination and principal investment activities we traditionally undertake some or all of the following steps:
- identify direct property investment opportunities through its network of development partners, property professionals, wholesale investors and other industry participants;
- perform detailed property and financial risk analysis on the opportunity;
- commission consultants to perform detailed due diligence to supplement its own internal due diligence and direct enquiries;
- prepare and/or review transaction feasibilities and cash flows and where relevant, seek external corroboration of underlying assumptions from relevant third party consultants;
- negotiate or provide input into acquisition terms and pricing and transaction structure;
- co-ordinate preparation and review of transaction documentation;
- arrange senior and/or mezzanine debt;
- contribute a proportion of total transaction capital from its own resources;
- where required, arrange contribution of the balance of capital from external sources;
- where required perform the funds management function including regular investor reporting and unit pricing;
- tracking project cash flows and regular reforecasting;
- monitor transaction performance and participate in transaction management;
- co-ordinate transaction audit and accounting;
- monitor transaction bookkeeping and accounting;
- report on transaction progress; and
- participate in sales and/or exit process.
