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Innovators in Investment COMPANY PROFILE
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Page 1: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Innovators in Investment

C O M P A N Y P R O F I L E

Page 2: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Welcome to QuantumQuantum Group was founded in 1986 as a boutique fi nancial services group.

Since then our objective has been to assist high-net-worth individuals, family offi ces and institutions to build wealth and accumulate

assets. A core part of our business is also solving their often complex tax issues.

At Quantum we have the skills, experience and expertise to meet the fi nancial needs of our clients.

We take a responsible, but innovative approach. Our focus is to identify investment opportunities that perform over the medium to long

term to create sustainable wealth and prosperity for our clients through providing premium service, knowledge and commitment to their

individual circumstances across wealth management and taxation.

Our Guiding Values are;

• quality in everything we do;

• professionalism and ethics in all our actions;

• growth and development of our people and skills;

• excel in service and communication to clients.

It is with pleasure that I welcome you to the Quantum Group.

Peter Gribble

Managing Director

Page 3: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Contents

Our Structure

Quantum Funds Management

Board of Directors

Due Diligence & Approval Process

Investing with Quantum

Quantum at a glance

Organisation Chart

Advisory Board

Track record

04

06

07

08

09

10

11

12

13

Page 4: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Our StructureOur Structure

p4 Quantum Group > Our Structure

QuantumBusiness Units

Commercial, Residential, Retail, Industrial

Development Funds

Single MandateAccounts

Mezzanine, Preferred

Equity & DebtClub Funds

Mortgage Funds

QuantumPrivateWealth

QuantumInvestmentSolutions

TaxationPortfolio

ManagementSMSF

QuantumLink

Portfolio Warrants

QuantumFunds

Management

Page 5: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Our Structure

Smart Investm

ent Takes Time

Quantum Group p5Our Structure <

Peter Gribble

B.EC, ASA, ANA, FITA, AFPA

Managing Director

Peter Gribble is the founder of Quantum and

responsible for the direction and development of its

products. Peter is a qualifi ed accountant and has over

25 years experience in tax, the investment markets and

property. Peter has been involved in approximately

AU$1 billion of property transactions over that period,

including direct involvement in most aspects of

property acquisitions, management and development.

Peter is supported by a team of 15 staff based in Sydney,

along with an independent board, an advisory board

and compliance committee.

Page 6: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p6 Quantum Group > Quantum at a glance

Quantum is a leading

investment group that has

been in operation since 1986,

providing both fi nancial advice

and investment opportunities

in a range of property,

mortgage and listed equity

investments to investors.

Quantum operates a boutique funds

management business and operates a

complete superannuation compliance

and administration service. It has a

strong background, knowledge and

experience in property, accounting,

taxation and investment markets.

Quantum has successfully established

over 23 property funds and has

completed property investments &

projects with a total asset value of

approximately $1 billion. The property

funds have included investment

opportunities in, commercial property,

retail, industrial, residential development,

retirement living and structured debt.

Quantum employs a disciplined

underwriting methodology and

investment criteria, focuses on capital

preservation, active asset management

and relies on its market knowledge

and expertise to identify the optimal

purchase and disposal strategy on its

property investments.

Quantum’s investment strategy

combines and focuses on four core

components that it believes are critical

the success of its property funds:

• access to proprietary deal fl ow;

• transactional expertise;

• eff ective asset management and;

• development processes and calculated

exit strategies.

Quantum believes its proven investment

strategy uniquely positions the company

to source, structure and create attractive

real estate investments and believes its

strategy ensures a consistent fl ow of

investment opportunities to its clients.

Quantum at a glance

Page 7: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Quantum Funds Management < Quantum Group p7

Quantum Funds Management

• Quantum Funds Management (QFM) is

a Responsible Entity registered with the

Australian Securities Investment Commission

under the Managed Investments Act 1998 and

holds an Australian fi nancial services licence

co-investments (AFSL 237 301).

• Quantum has the ability to off er clients the

following services;

• Investment - Direct investment management,

co-investments, single mandates, funds or club

structures;

• Capital – Mezzanine debt, preferred equity,

equity or debt

• Sectors - Quantum has made investments in

opportunistic assets and core assets

across the commercial, retail, industrial and

residential sectors.

• Quantum has been an active purchaser of real

estate assets in Australia and the USA

over the past two decades having established

and managed 23 property funds with total

investment in excess of A$1 billion.

• Quantum employs a strong corporate

governance process on all its investment

decisions to ensure all investments have

appropriate risks assessed and investments are

made in line with the investment mandate.

• The existing team has over 40 years experience

in the market with a well established market

presence and an extensive network of

relationships within the real estate market,

fi nancial institutions, developers, private

owners, administrators & receivers and

government agencies to enable proprietary

deal fl ow to source real estate opportunities.

• Quantum advises a number of high net worth

individuals and institutional investors and has

an excellent track record in creating optimised

tax eff ective investment structures.

Page 8: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p8 Quantum Group > Organisation Chart - Quantum Funds Management

Property Accounting

Managing DirectorBoard ofDirectors Fund Manager

Investor Relations

Senior Asset Manager

Acquisitions managerto Australia

Acquisitions managerto USA

Financial Controller

Advisory Committee3 External Professionals

Organisation Chart – Quantum Funds Management

Page 9: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Board of Directors

Quantum Group p9Board of Directors <

Peter Gribble is the founder

of Quantum and was

responsible for the direction

and development of many of its

property products. Mr. Gribble

is a qualifi ed accountant and

has over 20 years experience in

tax, the investment markets and

property.

Mr. Gribble has been involved

in over AU$1 billion of property

transactions over that period,

including direct involvement

in most aspects of property

acquisitions, management and

development.

Prior Experience

Bachelor of Economics

majoring in Accounting at La

Trobe University Melbourne,

1985. Taxation Institute of

Accountants 1998. Member

of ASCPA’s CPA 1993, Property,

Stock, & Business Agent 2004.

Peter GribbleManaging Director

26 years with

Quantum

JoAnna Fisher has over

20 years of experience in

the fi nancial sector, with

a thorough knowledge of

investment management and

investment banking. Ms. Fisher

is a former General Manager

– Strategy and Marketing for

the Commonwealth Bank.

She also spent 12 years at

Bankers Trust Corporation

in the United States, Japan,

the United Kingdom and

Australia, developing and

managing the institutional

funds management businesses.

At Bankers Trust Corporation,

Ms. Fisher was a member of

the Bankers Trust Global Asset

Allocation Committee.

Prior Experience

B.S. degree in Economics

& Asian Studies from the

Australian National University.

Diploma from the Australian

Institute of Company Directors.

JoAnna FisherNon-Executive

Director

7 years with

Quantum

Mr. Dillon has over 20 years

experience in a variety of

business related roles including

Westpac where he was a senior

executive in Institutional Bank

originations responsible for

the Hotels portfolio before

becoming Head of Property.

Prior to this Mr Dillon was an

executive at Macquarie Bank

Limited where he specialised in

hospitality and leisure property

transactions and also a Partner

and Director of corporate

fi nance at KPMG.

Prior Experience

Bachelor of Economics & Law

from the University of Sydney.

Masters of Management

(Marketing) from the Macquarie

University Graduate School of

Management.

Fellow of the Financial Services

Institute of Australasia and a

Member of the Royal Institution

Chartered Surveyors.

Chartered Accountant.

Benjamin DillonChairman

2 years with

Quantum

Page 10: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p10 Quantum Group > Advisory Board

Panel of Directors

Les Koltai is a partner of leading

Australian law fi rm DLA Piper

and is head of its Investment

Real Estate team. With extensive

experience in the investment

real estate industry, Les has

acted on a broad range of local

and cross border real estate

transactions including domestic

and cross-border direct and

fund to fund real estate

investments, developments,

sales and acquisitions, foreign

investment advice, real estate

joint ventures, mergers and

acquisitions of REITs, real

estate asset management

(including asset and property

management, leasing and

general commercial advice.

Prior Experience

BA/LLB - UNSW - 1986

LLM - Sydney University

- 1990Agent 2004.

Les KoltaiPartner

Real Estate: DLA

Piper

24 years

David is currently the Managing

Director at Cushman Wakefi eld.

From 2004 - 2010 David lead

Knight Frank Australasia as CEO/

MD. David has been involved

in the property market since

1982, his career experience

has involved working across

all sections of the business to

gain an in depth knowledge of

the property market. A licensed

valuer and a National Board

Member of the Property Council

of Australia and a member of

the Audit Committee.

Prior Experience

Bachelor Of Applied

Science, Property Resource

Management - 1984

Valuation Licence - 1985

David WoolfordManaging Director

Cushman Wakefi eld

28 years

Currently is the managing

director of a global

technology company.

Responsible for overseeing

the investment groups

technology development and

implementation worldwide.

Peter was also a senior member

of the Commonwealth Bank

of Australia, consulted for the

Public Trustee of NSW and Self

Managed Superannuation

Funds. Peter has extensive

experience in raising capital,

management of mortgage

portfolios and restructuring

debt.

Peter BeaumontManaging Director

Global technology

Company

24 years

Advisory Board

Page 11: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Quantum Group p11Due Diligence & Approval Process <

Advisory BoardDue Diligence & Approval Process

IndependentAdvisory Committee

IndependentValuation

InitialApproval

Board ofDirectors

FinalApproval

QuantumInvestment Committee

Ac

tiv

itie

s co

nd

uc

ted

Due Diligence Phase Investment Approval Phase

An Advisory committee made up of external independent senior industry professionals,

from Banking, Legal, and the Property sectors will consider; if the Investment is in line

with the Fund Strategy, have all risks been considered and appropriately mitigated,

are the assumptions in the fi nancial model fair and reasonable, can the investment be

funded and is the correct legal documentation in place.

Preliminary feasibility study

A detailed feasibility study will be

conducted covering the following issues:

• Revenue, cost and profi t estimate • Timing

• Town planning • Site issues • Legal review

• Regulatory, taxation • Capital Investment

• Exit Strategy • Market Research

• Scenario modelling

Final feasibility studyFurther investigations and

sensitivities will be conducted

following valuation and assessment

by Advisory Committee, prior to

lodgment of report to the Board

from fi nal approval.

Page 12: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Investing with Quantum

p12 Quantum Group > Investing with Quantum

Access

Capitalise on the existing

teams combined 40 years

experience and extensive

network of relationships

with brokers, developers,

fi nancial institutions to access

opportunities on and off the

market.

Structuring& Finance

Benefi t from extensive

experience structuring

transactions to minimise tax

and costs and utilise their

strong fi nancial relationships

to secure funding for

investments. This approach

enhances returns while

ensuring that the risks are

minimised.

Execution

Quantum has successfully

executed over A$1 billion of

property and development

transactions. Its entrepreneurial

approach mean the team is

able to “think outside the box”

and respond to opportunities

quickly, execute effi ciently and

implement calculated exit

strategies.

DueDiligence

Quantum applies a rigorous

underwriting process from

acquisition to disposal. This

process provides Quantum

with a well-informed,

comprehensive view of the

quality of the opportunity, its

ability to add value through

active management and its

ability to achieve an exit from

the investment and meet the

investors return parameters.

Monitoring

Quantum continually evaluates

actual’s V budget’s throughout

the investment lifecycle to

proactively manage risk.

Quantum has an excellent

understanding of the risk/

reward matrix and possesses

excellent development

management and property

re-positioning skills.

Page 13: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Quantum Group p13 Track record <

Track record

Page 14: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p14 Quantum Group > Track record

Storage King Granville Sydney Industrial 4,000 1,830 2,288 0 2,287 13.2% 1.3x

Storage King St Peters Sydney Industrial 3,560 1,288 1,905 0 1,905 11.7% 1.5x

Storage King Chatswood Sydney Industrial 3,750 1,661 1,692 0 1,692 0.4% 1.0x

Storage King Lane Cove Sydney Industrial 10,650 3,850 5,945 0 5,945 7.8% 1.5x

99 Forbes St Sydney Offi ce/Warehouse 12,100 5,209 4,036 0 4,306 -6.5% 0.8x

SUB TOTAL STORAGE 34,060 13,838 15,866 0 15,866 3.5% 1.1x

Investments Location Property TypeTotal

InvestmentEquity

InvestmentRealisedProceeds

UnrealisedValue

TotalValue

GrossIIR

InvestmentMultiple

20 Clarke Street Sydney Offi ce 1,800 740 1,891 0 1,891 24.7% 2.6x

Taren Point Sydney Industrial 26,920 3,900 18,037 0 18,037 94.6% 4.6x

40 Pacifi c Hwy Sydney Offi ce 4,150 1,950 3,879 0 3,879 23.1% 2.0x

City Beach Wollongong Residential 57,042 5,357 20,148 0 20,148 40.5% 3.8x

155 Queen St Brisbane Retail 23,700 10,191 25,676 0 25,676 26.7% 2.5x

The Wharf Sydney Retail 24,800 10,555 9,608 2,500 12,108 2.9% 1.1x

370 Queen St Brisbane Offi ce 10,950 5,560 12,477 0 12,477 29.5% 2.2x

Agnes St Albion Brisbane Residential 7,500 1,144 3,349 0 3,349 156.0% 2.9x

Eclipse Wollongong Residential 51,415 6,445 4.378 0 4,378 -14.3% 0.7x

Casuarina Tweed Coast Residential 31,507 8,300 972 1,750 2,722 -24.4% 0.3x

Gateway Townsville Residential 65,785 14,200 13,602 0 13,602 NA 1.0x

Gepps Cross Adelaide Retail 135,000 5,000 231 5,440 5,671 2.5% 1.1x

Mona Vale Sydney Residential 34,800 3,500 - 5,077 5,077 28.1% 1.5x

SUB TOTAL OPPORTUNISTIC FUNDS 475,369 76,843 114,249 14,767 129,016 35.0% 1.7x

1049 York St Sydney Offi ce 720 492 914 0 914 18.1% 1.9x

47 Fiction St Sydney Offi ce 2,350 800 977 0 977 11.9% 1.2x

515 Pacifi c Hwy Sydney Offi ce 6,725 1,960 3,563 0 3,563 17.0% 1.8x

60 York St Sydney Offi ce 2,160 650 1,751 0 1,751 20.0% 2.7x

SUB TOTAL CORE OFFICE 11,955 3,902 7,205 0 7,205 17.4% 1.8x

TOTAL INVESTMENTS 521,384 94,583 137,320 14,767 152,087 19.0% 1.6x

Opportunistic Funds

Core Funds

As at 31/12/12

Page 15: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Quantum Group p15Track record <

155 Queen Street, Brisbane

Investment overview

• Quantum purchased the property with

the possibility that the major tenant

may vacate as the lease was close to

expiry.

• Quantum was able to negotiate new

leases with the major tenant and

include a demolition clause in the

new lease. This locked in the income

value to the property and unlocked

the redevelopment potential of the

property.

• Quantum identifi ed the site

opportunity for further development

and commenced securing a DA for a

commercial development above the

centre.

• Quantum identifi ed that the Brisbane

mall was potentially under rented and

under valued when compared against

other Australia CBD malls.

Transaction structure

• Quantum negotiated the purchase of

the property for AU$23.7 million from

a local private investor and exited at

$37.8million.

• 155 Queen Street had a key location

on the prime retail shopping mall in

Brisbane CBD.

• The site was strategically located

between two institution owners. Both

owners had intentions to develop their

sites and this site assisted with the

amalgamation of their developments

sites Ultimately they become the

buyer of the property.Key Terms

Asset type: Offi ceAcquisition date: June 2003Exit date: November 2007Total investment: A$23.7 millionQuantum equity commitment: A$10.2 millionLeverage: 75%Quantum Australia’s share: 100%Realised Gross IRR: 26.7%Realised equity multiple: 2.5x

Page 16: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p16 Quantum Group > Track record

Taren Point, Sydney

• Quantum obtained a development

approval for 220 residential

apartments on the remaining lot,

which Quantum later sold prior to

commencing any construction on the

property.

Investment overview

• Quantum contracted to purchase the

property with a two-year delayed

settlement while Toyota moved from

the site.

• The delayed settlement allowed

for a repositioning of the asset by

subdividing the property into fi ve

separate lots to reduce the holding risk

of the property and provided multiple

exit opportunities.

Investment overview

• The Company committed A$1.1

million to secure the land under

a contract from Toyota Motor

Corporation Limited, who occupied

the site. Quantum addressed

contamination issues as the site was

previously a landfi ll. Quantum also

needed to address sulfate soils and

carbon contaminations from Toyota’s

occupation of the site.

• Quantum obtained a master plan

approval over the property and sub-

divided the property into fi ve lots in

addition to seeking a retirement village

development approval under a newly

commissioned government ordinance.

• Quantum was able to settle the

purchase of the property around the

same time as the sale of four of the fi ve

lots. This allowed Quantum to mitigate

part of the risk of the transaction as

well as requiring minimal equity and

maximizing the property IRR.

Asset type: Industrial and retirement villageAcquisition date: June 1999Exit date: January 2002Total investment: A$26.9 millionQuantum equity commitment: A$3.9 million Leverage: 37%Quantum Australia’s share: 100%Realised Gross IRR: 94.6%Realised equity multiple: 4.62x

Key Terms

Page 17: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Quantum Group p17Track record <

370 Queen Street, Brisbane

Investment overview

• Quantum purchased the property with

3,500 square meters of net lettable

area and a weighted average lease

expiry (“WALE”) of only 1.2 years.

• Quantum progressively refurbished

each fl oor as tenants vacated and

released whole fl oors to new tenants

to maximize the rents, in some cases

up to a 75% increase from the previous

tenants.

• Quantum was able to negotiate new

leases with terms ranging from 3 to

7 years and generally with market

reviews of the rental income every 3

years.

• Quantum also executed a major

repositioning of the ground fl oor retail

space with a new refurbishment which

made for an impressive interface of the

building with the streetscape.

• Once the property was fully

refurbished and the rents stabilized,

Quantum sold the property to a core

fund with a WALE of over 5 years.

Transaction structure

• Quantum negotiated the purchase of

the property for AU$11 million from

a local private investor with a delayed

settlement of 6 months and exited at

$20m.

• The property was purchased at a very

low cost per square meter compared

to similar offi ce buildings in the area.

• At the time of purchase, 370 Queen

Street appeared under-rented when

compared to similar refurbished offi ce

buildings in Brisbane.

• 370 Queen Street has a key location

in the “Golden Triangle of Brisbane,”

diagonally opposite the tallest building

in Brisbane.

Key Terms

Asset type: Offi ceAcquisition date: June 2004Exit date: June 2008Total investment: A$11 millionQuantum equity commitment: A$5.6 millionLeverage: 70%Quantum Australia’s share: 100%Realised Gross IRR: 29.5%Realised equity multiple: 2.24x

Page 18: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p18 Quantum Group > Track record

Investment overview

• Quantum contracted to purchase the

property conditional upon securing

an onsite operator for the managed

apartments and a builder to construct

the tower within the agreed budget.

This gave Quantum time to pre-sell

a number of the apartments before

having to pay for the land.

• By purchasing the property

conditionally, Quantum was able to

reduce the risk of the project while

fi xing the construction cost of the

building, which in turn maximized the

return.

• Quantum was able to identify that the

current owner, a private developer,

did not have the capital to complete

the project, and was able to negotiate

terms to purchase the property that

gave the optimal outcome for both

parties.

Investment overview

• Quantum purchased the land in

Townsville to develop a 12-story

residential tower on the waterfront

at the fringe of the CBD consisting

of a mix of 24 luxury residential

apartments and 88 resort-style

managed apartments. construction

was completed in late 2008.

• Before completing the acquisition,

Quantum contracted Matrix, one

of Queensland’s largest residential

builders, to construct the apartment

building at a fi xed price and on a fi xed

20-month schedule.

• Quantum contracted with Oaks Hotels

& Resorts to purchase the rights to

the on-site management and leasing

business for the managed apartments.

Oaks Hotels & Resorts is a publicly

traded national hotel and apartment

operator.

• Quantum leveraged the strength of

Oaks Hotels & Resorts to achieve sales

of individual apartments

Track recordDibbs Street, Townsville (Delivery Completed)

Asset type: Residential apartmentAcquisition date: October 2006Exit date: CurrentTotal investment: A$56.5 millionQuantum equity commitment: A$14.2 million Leverage: 57%Quantum Australia’s share: 100%Projected gross IRR: Returns to investors were taken

as stock in the development at a discount to market value

Key Terms

Page 19: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Quantum Group p19Track record <

Investment overview

• Quantum purchased the property and

obtained a development approval for

a three- stage residential apartment

complex.

• Stage 1 of the property consisted of

56 residential apartments, Stage 2

consisted of 62 residential apartments

and Stage 3 consisted of 110

residential apartments.

• Quantum developed Stages 1 and

2 and sold the property through

their on-site sales offi ce as individual

residential apartments.

• Quantum won a number of awards for

the design and development of the

Stage 1 apartments.

• Quantum sold Stage 3, prior to the

completion of the development of

Stage 2 for a profi t.

Transaction structure

• Quantum purchased the property for

A$5 million.

• Quantum bought out one of the two

existing joint ventures partners which

provided Quantum with the same

purchase price as was paid by the

existing joint venture partners when

they fi rst purchased the property.

• As the land was developed in three

stages, Quantum was able to minimize

the equity required to complete the

project and choose from multiple exit

options and timings to minimize risk

while maximizing returns.

• The project was a 50/50 joint venture

with Miltonbrook, a local developer

who provided the local expertise and

experience to ensure the development

was delivered in a timely manner and

on a controlled budget.

City Beach, Wollongong

Key Terms

Asset type: Residential apartmentAcquisition date: June 2000Exit date: June 2006Total investment: A$57 millionQuantum equity commitment: A$5.4 millionLeverage: 56%Quantum Australia’s share: 50%Realised Gross IRR: 40.5%Realised equity multiple: 3.76x

Page 20: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p20 Quantum Group > Track record

Transaction structure

• Quantum took a 37.5% interest in the

property.

• Gerry Harvey owner of Australia’s

largest retailer Harvey Norman and

Gepps Cross’s largest tenant is one of

the part owners of the centre.

• Quantum’s investment was a late

stage development investment.

Quantum did not invest its capital until

development approval was secured, a

fi xed price build contract was agreed,

tenant pre-commitments exceeded

50% and construction fi nance was

unconditionally approved.

Investment overview

• Gepps Cross is currently Australia’s

largest Bulky Goods Retail centre

encompassing over 62,000 sqm of

retail space.

• The centre is located 10kms north of

Adelaide CBD in Adelaide’s residential

growth corridor.

• The construction was completed in

mid 2009.

• The centre is anchored by Australia’s

pre-imminent retailers with 90% of the

tenants being national retailers. The

centre is 100% leased.

Gepps Cross, Adelaide (Unrealised)

Asset type: RetailAcquisition date: June 2008Exit date: Unrealised Total investment: A$135 millionQuantum equity commitment: A$12 million Leverage: 60%Quantum Australia’s share: 37.5%Realised Gross IRR: Unrealised Realised equity multiple: Unrealised

Key Terms

Page 21: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

Quantum Group p21Track record <

Investment overview

• Agnes St was a 5,658sqm site located

just 5km north of Brisbane CBD.

• Quantum identifi ed the site was

located in a urban renewal area and

our research suggested that the site

could achieve an improved yield under

new planning codes.

• Quantum secured a DA approval

for the residential development in

February 2007.

Transaction structure

• Quantum took an option over the site

and worked to achieve a development

approval for the a residential

development.

• By taking an option on the site

Quantum was able to work through

its business to plan to a point where it

was confi dent of the outcome before

committing its equity to the project.

• Quantum onsold the site with the

benefi t of the improved development

approval to a local developer. The sale

presented an excellent IRR return on

equity for the project and Quantum

exited and reinvested its capital in

other opportunities.

Albion, Brisbane

Asset type: Residential apartmentAcquisition date: September 2006Exit date: 2008Total investment: A$7.5 millionQuantum equity commitment: A$1.1 millionLeverage: N/AQuantum Australia’s share: 100%Realised Gross IRR: 156%Realised equity multiple: 2.9x

Key Terms

Page 22: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

p22 Quantum Group > Track record

• By position 50% as preferred equity,

Quantum was able to increase returns

to investors as it attracted a coupon

rate of 28% to refl ect the priority

ranking of the capital. The mezzanine

debt attracted a coupon rate of 22%

• To protect Quantum’s capital,

Quantum required that no draw down

of funds occurred until

• 100% of gross pre-sales cover the

investment amount

• A fi xed price build contract was

executed

• Senior debt facility for construction

was secured

• All project costs were verifi ed by

an independent third party and

a valuation supported the gross

realisations.

Investment overview

• DA approved residential site for

20 apartments located on Sydney’

northern beaches .

• The developer had insuffi cient capital

to construct the project and was

seeking a mezzanine debt or preferred

equity participating.

• The investment was for an 18 month

term.

Transaction structure

• Quantum provided 50% of the

required capital as mezzanine debt

taking a second mortgaged over the

land as security and 50% as preferred

equity also secured via the second

mortgage.

Monavale, Sydney

Asset type: Residential apartmentAcquisition date: March 2012Exit date: September 2013Total investment: A$34.8 millionQuantum equity commitment: A$3.5 million Leverage: 70%Quantum Australia’s share: 100%Realised Gross IRR: 28%Realised equity multiple: 1.5x

Key Terms

Page 23: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been
Page 24: Company Profile v6 - QUANTUM GROUP...COMPANY PROFILE Welcome to Quantum Quantum Group was founded in 1986 as a boutique fi nancial services group. Since then our objective has been

www.qauntumgroup.com.au

Corporate Directory

Head Offi ceOffi ce Address

Level 5

Fairfax House

19-31 Pitt Street

Sydney NSW 2000

Postal Address

GPO Box 2593

Sydney NSW 2001

Australia

BrisbaneOffi ce Address

Level 18

333 Ann Street

Brisbane QLD 4000

MelbourneOffi ce Address

Ground

430 Little Collins Street

Melbourne VIC 3000

TexasOffi ce Address

2131 N Collins Street

Suite # 433-740

Arlington Texas 76011

Atlanta Offi ce Address

5174 McGinnis Ferry Rd

Suite 205

Alpharetta GA 30005

Hong KongOffi ce Address

Level 8

Two Exchange Square

8 Connaught Place

Hong Kong

EnquiriesTelephone Number

1300 360 949

+61 2 8823 5222

Facsimile Number

+61 2 8823 5281

Email General & Media Enquiries –

[email protected]

Email Investor Enquiries –

[email protected]


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