Jasper Exits its First Investment, Delivering an IRR of 20.3%
Nov. 25, 2021: Jasper, the tech-led commercial real estate fund manager, has exited its first investment, the Holmes Road Industrial LP, returning capital to investors while delivering a net IRR of 20.3% p.a.
Established in October 2019, Holmes Road Industrial was Jasper’s first investment opportunity, made available to wholesale investors through its digital platform. The offer was popular with investors and was fully subscribed within 48 hours of release.
Jasper’s original business plan for Holmes Road Industrial was to acquire a well-located industrial asset supported by strong market tailwinds, targeting a long-term hold. However, due to market changes brought on by COVID-19 and lockdown restrictions, Jasper had to relet 80% of the property, replacing the main tenant and bringing four new occupiers to the site. Jasper then received an unsolicited off-market offer at a record yield for the surrounding area, and the limited partners decided to divest the property and wind up the partnership.
The transaction was settled on the 29th of October, 2021. The distribution of net cash proceeds from this investment has resulted in a 20.3% IRR and 1.4x multiple of invested capital after fees.
Jasper Co-CEO Mark Campbell commented, ”Holmes Road Industrial was acquired as an attractive and stable long-term investment opportunity for Jasper investors as a fully let, high-quality property in the industry’s strongest asset class. The COVID-induced departure of the primary tenant and an unsolicited offer presented an excellent liquidity opportunity for investors to realise a range of value-add work and leasing activity at the asset. The result is an excellent outcome for the investors in our first scheme.”
About Jasper: Jasper is a technology-enabled real estate fund manager based in Auckland, NZ. Jasper provides investors with access to private market investments typically reserved for the ultra-wealthy, providing a better user experience, improved liquidity, and lower fees. Established in 2019, Jasper now has over NZ$300 million of assets under management.