AMP Capital's property fund sells Florida site for US$11.5 million, says annual return 58%

AMP Capital’s Global Direct Property Fund (GDPF) offloaded a multifamily development land parcel in Tampa, Florida for US$11.5 million, delivering an annual return of 58.1 percent over the holding period.

The site was acquired for US$2.5 million in February 2013. The fund’s US investment strategy focuses on acquiring middle-market assets (around $25-65 million).

Located at the southern end of the Tampa CBD on Harbour Island, the multifamily development land parcel is zoned for 340 high-rise residential units.

GDPF purchased both the land parcel and the adjacent class A office building from two different vendors, hoping to unlock the maximum value from the acquisitions.

AMP Capital subsequently sold the land parcel to a US residential developer together with rights to use up to 560 excess parking spaces from the adjacent office building, to be connected via a sky-bridge to be built by the developer.

The fund has retained the office building, hoping to profit from its leasing program and a cyclical recovery in the Tampa office market.

AMP Capital Fund Manager Tim Fallet said that investors had benefited from its disciplined strategy.

“This transaction demonstrates the fund’s entrepreneurial and disciplined approach with a focus on acquiring real estate at a compelling entry price, aggressive business plan execution and strategic marketing to buyers. Over the last five years the fund’s US portfolio has delivered a return of 19.8 per cent per annum," Fallet said.

“We continue to see a strong pipeline of attractive core-plus investment opportunities in select submarkets and sectors across the US where we will look to deploy this capital.” 

The fund plans a further round of capital raising.