9 Hercules Street
WHY MANAGED DIRECT OWNERSHIP
Property is one asset class which almost invariably enjoys value growth over the longer term, and which may be insulated against market fluctuations by competent management. Less complex structures which focus on genuine asset value and rental returns are those which stand the test of time.
MDO Property’s simple and transparent direct ownership structure and investment strategy reduces non-core property investment risk while still providing the traditional benefits of the asset class. It is a welcome change from the myriad of complex property structures in the market and offers the following benefits:
- Long Term Investment – By focusing on long term retention of the asset, MDO is removing the influence of the broader equity market and the forced sale scenario experienced by some listed and unlisted property funds.
- Income – Quarterly tax effective distributions paid only from net operating income. Asset selection focused on long term lease profile, sound tenant covenants, and minimum forecast capital expenditure to reduce distribution risk. Debt will not be sourced to fund distribution policy, repairs and maintenance within the passive asset portfolio.
- Capital Growth – MDO Property is presenting investors with emerging counter-cyclical opportunities at compelling risk adjusted returns, providing opportunity for capital growth.
- Debt Structure/Leverage – Conservative leverage, debt recourse to the specific property asset only, not cross collateralised over a portfolio.
- Strategy – A simple and transparent investment management strategy disclosed prior to the acquisition of the asset, which specifies the management fee structure and the equity of the MDO Group in the property.
- Access – MDO Property offers investors access to a range of direct yet fully managed investments across a number of classes.