Armada Funds Management Pty Limited (“Armada”) was established in early 2006 as a specialist funds management and advisory group based in Sydney.
Since its establishment Armada has been managing private property funds on behalf of a number of clients. With prices in the Australian commercial property market reaching exorbitant levels through to late 2007 and with economic conditions becoming volatile globally in 2008 Armada decided that 2007 and 2008 were inappropriate years to make property acquisitions on behalf of investors in new public funds.
Armada’s investment philosophy is simple. It is to seek out undervalued but strongly performing and well tenanted investment quality property assets, from Australian institutions and corporates (who have a reputation for looking after their assets from a capital expenditure and management perspective), in markets with strong upside potential. Armada believes that buying at the right price is fundamental to successful investment performance. Further, the investment needs to be able to provide a strong cash yield with the added potential of a good capital growth prospects on the initial outlay, providing market conditions are appropriate during the term of the investment.
Armada looks for certain criteria when it sources investment property. This criteria includes:
- Prime locations for its asset type
- Quality tenancy profile and tenure
- Preferably modern assets with minimal capital expenditure requirements
- Dominant asset in its catchment (if retail) with minimal prospect of material new competition
- Established and growing trading patterns and tenants
- Long dated lease expiries amongst the majors, supplemented by a good spread of national specialty tenants
- Prospects for population growth in the catchment
- Leases that provide for regular and preferably fixed rental increases
- Markets and assets with low vacancy rates
- Ability to add value by expanding or re-positioning the asset
Armada’s Network
Armada utilises a widespread contact network across the Australian property industry. Armada’s key property and capital market relationships enhances its ability to source quality investment opportunities across the property sector. Its depth of property and investment experience and ability to add value where required provides a solid foundation for the investment products it provides to its investors.
Intensive Management Focus and Risk Assessment
Before making any property acquisition Armada carefully analyses the risks associated with the investment and seeks to minimize those risks during the term of the investment. The establishment of clearly defined exit strategies and the ability to sell or realise assets at the appropriate time in the investment cycle is a key goal of Armada to enable it to optimise equity performance and reduce risk.
Once the asset is acquired Armada is focused on providing a hands on management approach of the investment and utilize specialist skills in the relevant asset sector. Armada targets the best outcome for its investors in all aspects of the investment and asset management.
Armada’s Mission
Armada is to capitalise on commercial property markets and opportunities to produce superior investment performance within defined risk parameters.
Armada’s objective is to be a high performance property investment manager, specialising in managing income return focused property funds with good capital growth prospects. It aims to do this by astute selection of assets combined with sensible market timing.